Related Articles
VIEW ALL ARTICLES
Navigating the world of home loans on your own can be time-consuming and complex. Here’s where a great mortgage broker can help.
Using the services of a mortgage broker can help you to get the right property loan for your needs. The lending market in Australia is highly competitive with a wide range of lenders and loan types. Navigating that landscape by yourself can be both time-consuming and complex, especially if you're a first home buyer.
Read on to find out questions to ask your mortgage broker to help you make the right property loan decision.
First Home Owner Grant eligibility conditions vary among the different States and Territories in Australia, but they all require you to be buying a home to live in (rather than an investment property) as one of the conditions.
However, most States and Territories only require you to live in the home for 6 to12 months to meet this residential condition. This means that it's possible to convert your property into an investment property after you have satisfied this initial requirement.
Depending on your location, the First Home Owner Grant is currently between $10,000 and $20,000 (except in the Australian Capital Territory where it has been replaced by reduced stamp duty instead).
Most lenders will require you to have a deposit of at least 20% of your property's purchase price to avoid having to pay for lenders mortgage insurance (LMI). LMI protects the lender if you don't make your repayments. The cost of LMI depends on how much you borrow and how much deposit you can provide, but it can be $10,000or more on a typical property.
If you are buying an investment property with less than a 20% deposit, then it's important to understand that you won't be eligible for the federal government's First Home Guarantee to avoid LMI.
Your borrowing power will depend on how much you can afford as your regular loan repayments. This in turn will depend on:
This is an important question. With mortgage repayments making up such a sizeable portion of median household disposable income (41% in 2021) you need to do the sums before taking on a new debt. Your repayment amount will depend on a range of factors:
The lowest interest rates are usually available for borrowers who have larger deposits.
Rates can vary daily, but the lowest interest rates are usually available for borrowers who have larger deposits
(i.e., at least 20% of the property's purchase price).
Different lenders charge different fees. Upfront loan fees that you may be charged include:
However, a mortgage broker will be able to help you avoid some of these lender fees if it's possible.
In addition to lender fees, other upfront property purchase costs can include:
These documents vary from lender to lender, but in general, you will at least need the following:
Our mortgage broker and team of finance specialists will work with you to understand your goals, look at where you are today and help find you the best finance that suits your needs for today and tomorrow.
DPN were proudly recognised as a Mortgage Professional Australia Top Brokerage for 2023 for our work helping Australians with competitive finance solutions.
.svg)
