Getting your Home Loan sorted out early can ensure you are in the best possible position to negotiate for your new home, on your terms. And while the home loan application process can seem daunting, with the help of an experienced Finance Broker it is simpler an easier than you think. Best of all: The bank pays me for my service so it is of no extra costs to you.
I have access to over 60 banks and lending institutions. With this array of resources at my fingertips, I can help take the hassle out of finding your next loan.
Home Loan Deposits
These days, most banks and lenders require you to contribute a minimum of 5 per cent of the property value. You may be able to fund your deposit from a range of sources, including genuine savings, tax refunds, monetary gifts, first home owner incentives or equity in your existing property.
An alternative to cash savings is through the use of family equity, also known as a limited guarantor loan. The most common form of family equity is where a family member offers their existing property as security for a portion of your home loan, generally around 20 per cent.
The less interest you have to pay on your loan, the less expensive it will be in the long run. By choosing the right loan from more than 35 lenders and regular revision of your loan I make sure that you are always on a competitive rate.
Obtaining a low interest rate is in your favour, but the rate you get is dependent on many things.
Market conditions often dictate how low rates go, but it is just as important to make yourself an attractive borrower to lenders in order to receive a competitive rate. Good credit, proof of savings and a larger deposit are all great ways for you to find a lower interest rate.
Variable rate loan
The rate of this loan has the ability to go up or down as the market changes. Variable rate loans give you flexibility to pay additional funds into your loan and have an offset account, but can also leave you open to rate rises which is something you need to factor in.
Fixed rate loan
Your interest rate and repayments will stay the same during the fixed term, no matter what. So no surprises. You are limited to how many extra repayments you make during the fixed term.
A combo of the two loans above. You can lock part of your loan as fixed and the other part as variable.
Introductory rate loan
Also known as ‘honeymoon’ loans, these offer a low interest rate for a short period (eg. a year), after which the rate moves to the standard variable rate.
If you want to build a home or change the structure of your existing home, this is your loan. Most construction loans are interest only for the first year while the build is underway and interest is charged on the amount you draw down on from the loan for building repayments.
I can run you through the features of each loan and which one could work for you. Hit reply and I’ll answer your questions.