Purchasing your home is a big step for anyone. The experienced and friendly mortgage brokers at Gateway Finance work hard to get the best loan for your property purchase. We take the time to understand your finance goals and dreams to curate a selection of the best options for your home loan.
Buying a home can be confusing with so much information to absorb. We provide an overview of the important information regarding home loans.
When you apply for a home loan, you borrow a specific amount of money from a lender to purchase a property. The amount you can borrow depends on various factors, including your income, expenses, credit history, and the value of the property.
Home loans typically come with either a variable interest rate or a fixed interest rate, or a combination of both. A variable rate can change over time, while a fixed rate remains the same for a predetermined period. The interest rate determines the amount of interest you’ll pay on the loan.
Owner Occupier Home loans, that’s where the owner lives in the property, are usually repaid in regular instalments over an agreed loan term, which is often 25 to 30 years. Each repayment includes both principal (the amount borrowed) and interest (the cost of borrowing). The frequency of repayments can usually be monthly, fortnightly, or weekly.
The loan term is the length of time you have to repay the loan in full. Shorter loan terms typically result in higher monthly repayments but lower overall interest costs. Longer loan terms can lower monthly repayments but result in more interest paid over the life of the loan.
When purchasing a property, most lenders in Australia require a deposit. The deposit is a percentage of the property’s purchase price and serves as an upfront payment. Generally, a deposit of 20% of the property’s value is recommended to avoid paying lender’s mortgage insurance (LMI), although a lender may lend up to 95% of the property’s value, which would mean the borrower would only have to have a 5% deposit.
If you have a deposit of less than 20% of the property’s value, you may need to pay LMI. LMI is a type of insurance that protects the lender if you default on the loan. The cost of LMI is typically added to your loan amount.
When taking out a home loan, you should also consider additional costs such as application fees, valuation fees, legal fees, and ongoing fees charged by the lender. These costs can vary depending on the lender and loan product.
It’s important to note that home loan products and features can vary among lenders, so it’s advisable to research and compare different options to find the most suitable loan for your needs. Additionally, seeking advice from a mortgage broker or financial professional can provide valuable guidance tailored to your specific circumstances.
Disclaimer:
Please keep in mind that the information provided here is a general overview, and it’s always recommended to consult with a mortgage professional for specific details and advice regarding home loans in Australia.
We want you to help you achieve your finance goals whether it is getting you into a new home or assisting with a investment property.
Here’s the process on how we get your home loan approved quickly.
Chat with us to discuss your specific financial goals and dreams.
We work hard to present to you the best solution, lender and interest rate based off our initial discovery call.
We will help you complete all the necessary paperwork and requirements with your chosen lender to get your application sorted.
We will monitor your application and keep in touch along the way. We work behind the scenes to make sure everything is as smooth for you as possible.
There are several key factors to consider for a home loan
Compare interest rates offered by different lenders to find the best deal for your loan.
Take into account any upfront fees, ongoing fees, or exit fees associated with the loan.
Evaluate the features offered by different lenders, such as offset accounts, redraw facilities, and additional repayment options. Choose a loan that aligns with your financial goals and requirements.
Lenders assess your creditworthiness when applying for a home loan. Maintaining a good credit score and demonstrating a reliable repayment history for existing loans and credit cards can improve your chances of approval. We will organise a copy of your credit file as part of the process to check your score and any credit markers that my influence the loan.
There are so many different lenders with a variety of differing products. Not every product and lender will suit your financial needs. We provide research to consider the options that suit your financial situation and provide options from the lenders on our panel.
Before proceeding with refinancing, it’s important to carefully evaluate your individual circumstances and financial goals. It’s recommended to seek advice from a financial professional or mortgage broker who can provide personalized guidance based on your situation.
Disclaimer
Please note that the information provided here is general in nature, and it’s always advisable to consult with a mortgage professional for specific details and guidance regarding refinancing a home loan in Australia.
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