Getting a suitable home loan involves comparing different options, evaluating how much you can afford to borrow for your desired property, and then applying for a specific home loan. You can apply directly to the lender of your choice or work with a mortgage broker. If your application is approved, the lender offers the money as a home loan, which you repay over time following their terms and conditions.

The amount you can borrow depends on your personal financial situation and the lending policies of the chosen provider. Lenders assess factors like your income, expenses, and credit score to determine the amount they’re willing to lend you.

Generally, having a deposit of at least 20% of the property value is advisable. This is often referred to as an 80% maximum loan-to-value ratio (LVR). A larger deposit can reduce your home loan’s total cost, as interest is charged only on the borrowed amount. Smaller deposits may require payment for lenders mortgage insurance (LMI)

A fixed rate home loan locks the interest rate for a specific period, providing stability in repayments.

A variable rate home loan features an interest rate that can fluctuate based on market conditions and lender decisions.

Refinancing a home loan shares similarities with applying for a new home loan. Borrowers have the flexibility to choose a different home loan and are not obliged to stay with their original lender.
Many lenders offer incentives to individuals refinancing from a different bank. However, it is essential to consider various factors beyond these incentives. Be aware that switching lenders might involve application or switching fees.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

Your home loan repayments will depend on the following factors:

• Type of loan: Different loan types have varying repayment structures.
•  Principal amount: The amount you’ve borrowed
• Interest rate: The rate at which interest is charged.
• Repayment frequency: How often you make payments – weekly, fortnightly or monthly
•  Loan term: The duration of the loan.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries.

Several costs and fees are involved in purchasing property, including:

•  Lender costs: Such as application fees, package fees, property valuation, and administration fees.
• Legal and conveyancing fees: Costs associated with solicitors or conveyancers, varying by state/territory.
• Mortgage insurance costs: LMI for loans over 80% of the property’s purchase price; larger
  deposits can help reduce this.
• Building inspection and report: Necessary before purchase; costs vary by property size and location.
• Pest inspection: Important for identifying pest-related issues before purchase.
• Stamp duty: A tax charged on property transfers, with rates and thresholds varying by region.
• Home insurance: Required upon contract exchange, with ongoing premiums and additional charges.

Post-settlement, budget for ongoing expenses like insurance premiums, rates, water charges, and potential body corporate fees for units or townhouses. Don’t forget to include regular home loan repayments in your budget.

For more information call us on 0410 598 828 or email us on czang@bestprofessionalfinance.com.au for free mortgage health checkup or for any loan enquiries