Spend less on your home loans and more on your dreams
With highly competitive rates, we can provide the solution for your needs.
As mortgage brokers, we also have access to major lenders. With this broad and comprehensive range of options, we’ve got you covered.
If you’re wondering whether to go directly to a bank or consult a mortgage broker, do a little research first, we encourage it.
If you thought choosing a property was difficult – just wait until you have to choose the home loan that will pay for it!
Here’s a checklist of features to look for before you choose a home loan:
1. Do you need Lenders Mortgage Insurance (commonly referred to as LMI)?
If you have less than a 20% deposit, you may need to pay for lenders mortgage insurance. Lenders Mortgage Insurance is a premium payable by you the borrower that protects the lender (financial institution) against potential losses if you are unable to repay your loan
2. How much deposit do you have?
Different lenders offer loans with different Loan to Value ratios (LVRs). The LVR is the percentage of the loan amount that you are able to borrow from the lender.
For example, if the loan amount you would like to borrow is $300,000 and the maximum LVR is 90%, then you would only be able to borrow $270,000 and you would need to put down a $30,000 deposit.
At Fia we will work with you to ensure you have enough deposit to obtain your dream house. As a First Home buyer you are entitled to Government grants which can also be used towards your deposit. We also work alongside No Deposit First homes who can help you buy your home with no deposit at all.
3. What fees apply to the loan?
There may be a number of fees charged on different features of a home loan, including:
- Application fees (also called establishment fee)
- Property valuation fees
- Ongoing fees such as annual fees
- Late payment fee (also called default fee) (if you make a required repayment later than the due date)
- Early exit fee (if you repay your home loan in full and close the loan before the end of the loan term)
- Discharge fee (also called termination fees or settlement fees) (charged when you pay out your mortgage in full)
- Break fees (also called break costs) (if you switch loans during a fixed rate term)
- Redraw fees (if you use a redraw facility)
- Account-keeping fee for offset account (if you have an offset account attached to your loan)
- Lender’s Mortgage Insurance (LMI) (if you only have a small deposit on your loan)
4. What is the interest rate?
Lenders will typically display a current/advertised interest rate and a comparison rate.
The advertised rate generally is just the interest rate, and it does not include the cost of any fees or charges.
Meanwhile, the comparison rate calculates what the cost on that home loan product would be for a certain loan amount over a certain loan period, taking into account most fees and charges (Canstar’s comparison rates are based on $150,000 loan over 25 years). Confused? Learn more about comparison rates here.
In addition, some lenders will have a honeymoon rate or introductory offer interest rate. The honeymoon rate and introductory rates are generally lower rates offered only for a short time at the start of your loan. So always remember to check the comparison rate to get an idea of what the real cost of a loan would be when your introductory period came to an end.
5.What’s the best type of loan for me?
Another home loan feature to look for is the decision between fixed or variable. You will need to weigh up the pros and cons for your individual circumstances to get the low-down on the benefits of both types of loan. Plus check out our fixed vs variable article.
Remember some loans have the ability to split your loan so that a proportion of the loan amount is variable and the remaining portion is fixed.
6. Home loan features to look for – does the loan have features important to you?
While rate and repayment amount are important, you should also check out what features are on offer in a home loan that you might be considering. Some home loan features to look for include:
- An offset account
- A redraw facility
- Ability to make extra repayments
- Ability to make lump sum repayments
- Ability to split the loan between fixed and variable
- Ability to get home loan pre-approval
The factor that will have by far the biggest impact on the overall cost of your loan is the interest rate – so ensure that you are not paying an uncompetitive rate. View our most recent Home Loans Star Ratings report to get a run down on the outstanding value home loans on offer in Australia. Also, check out our mortgage repayment calculator.
Each individual has different circumstances and requirements so your full financial situation will need to be reviewed prior to acceptance of any offer or product.
Finance Industries Australia Pty Ltd as Trustee Fastdreams Trust ABN: 31 817 124 438
Credit Representative 382599 is authorised under Australian Credit License 390222
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Finance Industries Australia Pty Ltd as Trustee Fastdreams Trust ABN: 31 817 124 438 Credit Representative 382599 is authorised under Australian Credit License 390222
Your full financial situation should need to be reviewed prior to acceptance of any offer or product.
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