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About Getting the Best Home Loan
HOME LOANS
PREPARING FOR A HOME LOAN
- You need to be virtually Debt Free. It is very difficult to show an ability to pay a new Home Loan if you have to pay a lot of Cards, Personal Loans or car loans as well. The less Debt you have the better.
- You need a deposit. You will also need enough money to pay your legal fees and Stamp Duty. First Home buyers schemes can help here. Aim for at least 10% of the value of the home you are looking to purchase. The more deposit you have the less in Mortgage Insurance you will pay and the better the Interest rate you can get.
- You will still need to have shown a capacity to save. You must demonstrate that you can pay and live on the income you have. The combination of your rent, payments to any loans you have finished paying off and the amount you have been saving, must add up to at least what your Home Loan repayments are going to be. This Demonstrates your ability and willingness to pay a Home Loan. This is often referred to as Genuine savings.
- The property you propose to purchase will have to be in a location the bank or Lender is comfortable with. Rural areas and out of the way locations can be very difficult to find a funder. You will need to be buying a correctly valued property. A bank or Lender will be looking at what they can resell a property for quickly, to recover money they have lent on a loan. When things go wrong this protects you too.
- For the best loans, your credit report must show a good history of on time payments.
HOME LOAN INFORMATION CHECKLIST
HOME LOAN DOCUMENTS REQUIRED CHECKLIST
HOME LOAN APPLICATION FORM
APPLICATION ANALYSIS FORM
HOME LOAN REFINANCING
HOME LOAN REFINANCING
HOME LOAN DEBT CONSOLIDATION
REFINANCING HOME LOAN AND DEBT CONSOLIDATION
We have encountered situations where clients have been paying nearly as much interest on their secondary debt as their Home Loan.
Sometimes you may need your overall monthly payments dropped, so that your budget becomes more manageable. Whilst the home loan payment rises a little, there is a significant reduction in the overall monthly repayments. We can go through the calculations with you. Once again if your financial situation starts to become uncomfortable it is better to act sooner rather than later. If things start to run late it can prevent you from borrowing at a Prime rate. Things that may stop you from being able to consolidate with a Mainstream Lenders are –
- Having too many Cards or Loans
- Being over the limit on cards
- Being late with payments especially the Home Loan and Rates. It doesn’t take much.
- Having payday loans
- Unpaid Tax
- Not having Financials up to Date
- Being new in a Job.
- Credit Report Blemishes
INVESTMENT HOME LOANS
INVESTMENT HOME LOANS
We can then review your Budget, Assets and Liabilities to determine how much you can borrow, which will, in turn, give you a general idea of your target price range, so you can narrow your property search to within your budget.
Put all the costs into the budget that you know will be generated by your property. Also include Rates, Water, Maintenance etc and of course the expected Rental Return. We also need to look at your affordability if there is tenant problems or vacant periods.
We can then look at Lenders that will be suitable and see what sort of deals they are offering. Specialist Lenders are quite competitive in the Investment space, so it will be handy to look at all the options.
ARTICLES
- Comparison rates Explained
- Fixed rates Explained
- LVR explained
- Lender Mortgage Insurance (LMI) explained
- Construction Loans Explained
- Genuine savings requirement explained
- How lenders work out if you can afford a loan
- Why a Pre-approval?
- Show a Savings History to Qualify for a Home Loan
- The Added Cost of Purchasing a Property
- The Smart Way to Borrow from the Mum and Dad Bank
- Guaranteeing Your Children’s Loans
- Flying Solo and Buying a Home
- When To Refinance My Mortgage
- The Cost of Refinancing
- Bridging Loan or Deposit Bond?
- Buying an Investment Property That Already Has a Tenant
- Rentvesting
- Rules of Investment
- Why Property Investors Need Savings
- Reverse Mortgages Explained