Home Loan FAQ
How much money can we borrow?
How much do I need to save for a deposit?
How do I know if I am eligible for the first home owners grant?
How much money will I need to set aside for Stamp Duty?
Other than the mortgage and stamp duty expenses what other expenses can I expect to pay?
What is Lenders Mortgage Insurance?
What happens once I have completed the online enquiry form?
What documentation will I need to apply for a home loan?
What is Settlement?
When does settlement occur?
How often can I make payments on my mortgage?
Which banks and lenders do realestate.com.au Home Loans represent?
How much money can we borrow?
The amount of money you can borrow, commonly known as your ‘Borrowing Capacity’, will differ from lender to lender. Some lenders will lend you more than others. To establish your approximate Borrowing Capacity click here or alternatively fill out our online application form and your local mortgage consultant will provide a more specific overview for your individual situation.
How much do I need to save for a deposit?
The deposit required depends largely on the type of home loan, and of course the lender you select. As a general rule if you are an owner occupier you will require at least 5% of the purchase price as a deposit. If you are an investor you will require a deposit equal to anything from 5% to 20% of the purchase price. Your realestate.com.au Home Loans consultant will be able to give you a more precise figure based on your individual situation.
How do I know if I am eligible for the First Home Owners Grant (FHOG)?
As a basic rule, you are eligible if you are an Australian citizen or permanent resident, buying or building your first home in Australia, with the intention of occupying the property as your principle place of residence within 12 months of settlement. It is important to note that if you are purchasing the property in conjunction with others, they must also meet the same criteria for the FHOG to be applicable.
How much money will I need to set aside for Stamp Duty?
Stamp Duty is a State Government tax based on the selling price of the property. Each State/Territory has different rules and calculations, some even offer discounts to first home buyers. Stamp duty can form a significant additional cost when purchasing property. To find out how much Stamp duty you are likely to pay click here to go to our Stamp Duty calculator.
Other than the mortgage and stamp duty expenses, what other expenses can I expect to pay?
As a rough guide it is recommended that you budget 5 – 7% of the purchase price, on top of your deposit, to cover fees and charges. These fees and charges may include, but are not limited to:
- Building/Pest Inspection
- Valuation Fees
- Lenders Mortgage Insurance(LMI)
- Solicitor Fees
- Insurances
- Connection Fees – phone/gas/electricity
- Rates Removal Fees
What is Lenders Mortgage Insurance?
Contrary to what many borrowers may think, Lenders Mortgage Insurance (LMI) does not protect the borrower should they be unable to make mortgage repayments. Instead, LMI protects the lender from any losses resulting in the sale of a property due to default by the borrower. LMI premiums are payable by the borrower when the amount borrowed is above a certain percentage, usually 80% of the lender’s valuation of the property. Some lenders will allow you to add the LMI premium to your home loan whilst others require you to pay it up-front.
What happens once I have completed the online enquiry form?
Once you have completed our online application form, your local Mortgage Consultant will be in contact with you to answer any immediate questions you may have and arrange a convenient time for your FREE home loan consultation.
Your Mortgage Consultant will discuss your home loan options and, if required, they’ll even fill out the official home loan enquiry form and submit it to the lender on your behalf. These consultations are absolutely obligation-free.
Leave the hard work to us; simply compete our online enquiry form.
What documentation will I need to apply for a home loan?
In conjunction with the submission of your official home loan application you may need to provide supporting documentation that confirms your identity and substantiates your income. Documents can include:
- Drivers License
- Birth Certificate
- Recent payslips
- Tax returns
- Bank statements
- Rates notices (if you own existing property)
Your Mortgage Consultant will be better able to provide an accurate overview of what is required for your individual situation.
What is Settlement?
Settlement is the completion of the sale, when the borrower takes possession of the property and the mortgage takes effect.
When does settlement occur?
Settlement usually takes place 4 – 6 weeks from the date the home loan is formally approved.
How often can I make payments on my mortgage?
Most lenders these days offer flexible regular repayment plans. You can choose to pay weekly, fortnightly or monthly. The repayment can therefore be matched to your pay cycle.
Which banks and lenders do realestate.com.au Home Loans represent?
We have access to more than 500 home loans provided by approximately 40 well-known banks and lenders. This can change from time to time so for an overview of our existing panel of lenders click here.
More information and home loan help
For more information on how and where to find a better home loan deal from an extensive panel of Australian banks and secure mortgage lenders, or to speak to your local area mortgage expert, contact us on 13 LOAN (direct +61 2 9249 3739)
