Mortgage Doctor
|
|
Would you like a free home loan quote from one of our consultants?
Why not take advantage of this special promotion.
|
|
Q How much can I borrow?
This depends on a range of factors including your personal circumstances, the price of the property and any valuation that may be required (a bank valuation may not be the same as the purchase price). Depending on the lender, they may be prepared to lend up to 95% of valuation, depending on your ability to repay. It's worth noting that loans of more than 80% valuation often require mortgage insurance, which the borrower pays for.
Click here to find a broker close to you.
Click here to work out how much you can borrow using our calculators
Q What is the difference between fixed and variable rates?
Fixed interest rates are locked in for a period of time and don’t fluctuate, so payments remain constant for that period whereas variable interest rates vary according to market conditions. Variable loans will increase or decrease over time which will directly affect your payments.
Check out all the best home loan rates by clicking here.
Q What is a split loan account?
Split loans give you the flexibility to structure a home loan in a way that best suits your situation. You can fix a portion of your home loan so that you have certainty with your repayments and have the other portion on a variable rate.
Click here to find a broker close to you and find out if a split loan suits you.
Q What is an offset account and how does it work?
It's an everyday account connected to your home loan that lets you get money out of an ATM, pay bills or write cheques. Being linked to your home loan it assists in getting the Principal down and ultimately saving you interest. With interest calculated daily, every cent you have in an offset account works to pay off your home loan faster.
Click here to find a broker close to you and find out if an offset account suits you.
Q What's a redraw facility?
This is when you withdraw extra money that you've paid into your variable rate home loan. The amount simply gets added to the amount you owe. You can redraw as you need, as long as you have available funds in the loan.
Click here to find a broker close to you and show you how you can set up a redraw account.
Q Can I make extra payments or pay a lump sum?
Yes, most loans have this facility allowing you to reduce the original amount borrowed so you pay less interest over the long haul.
Click here to let a broker help you find the best loan.
Q Can I Switch Loans?
Making the decision to change loans or refinance, is difficult as there are hundreds of loans available from hundreds of lenders. On top of that, there are other factors to consider such as how long do you want your loan period to be or how much you can afford each month? Some loans have early pay out penalties and other costs you will need to consider. Sometimes re- financing is not the answer and not the right option for you.
Click here to let a broker help you find the best loan.
Q Am I eligible for the First Home Owner’s Grant Scheme of $7000?
You will be eligible to apply if you:
- are buying your first home
- are an Australian citizen or permanent resident
- intend to make the home your principal residence, and
- start living in the home within a reasonable time. The payment will be the same regardless of your income.
Click here to let a broker help you find the best first home buyers loan.
Q What is Lenders Mortgage insurance (LMI)?
LMI protects lenders against loss should a borrower default on their loan.
Q What is the difference between a Principal and Interest Home Loan and an Interest-only Home Loan?
A Principal and Interest Home Loan is where the principal and the interest are repaid together for the term of the loan. An Interest-Only Loan allows you to pay only the interest on the loan. Property investors are suited to Interest-Only because it maximises the investor’s tax deductions.
Click here to find a broker close to you.
Q How can I reduce my mortgage?
The secret to financial security is making your money work for you.
Here are some tips to obtain financial security:
- Evaluate – review your current financial position comparing your total income against all outgoings.
- Budget – recording your day to day expenses is the key to financial control. By using your cash flow more effectively you can reduce your current commitments.
- Plan – set your future personal and financial goals. This will give you an incentive to succeed.
- Select – choose a loan that offers features and benefits that match your individual lending needs, not just now but into the future. This will assist you to repay your loan sooner.
Click here to find a broker close to you.
Q Should I refinance?
Decide whether your existing financial arrangements still suit your current circumstances. If your current loans or credit card debts are not providing you with the desired results and you are paying too much, consider refinancing or consolidating your debts to achieve a financial benefit. These days, there are a wide range of finance products from many different lenders available. Finding the right loan may greatly reduce your loan term, interest payments or repayments enabling you to obtain greater financial security.
Click here to find a broker close to you.
Q What tools can I use to help me select the right loan?
- This can often be a daunting task. For those that like to do research before meeting with a broker or lender, there are many websites that have very basic information such as interest rates. Unfortunately there are many variables that come into play when selecting a home loan. Ratesonline provides very comprehensive information on over 700 home loan products that is updated daily.
- You are able to research many loans and submit an enquiry or application and will be contacted by either a broker or lender.
- Start your research click here
- What is your disposable income?
Use this calculator to help you assess your net income.
- How much can you borrow?
Use this calculator to discover based on your current income and expenses your borrowing capacity
- What’s the best loan for you?
Use this calculator to compare two home loans and find out which one will save you the most money
- What will your Loan repayments be?
Use this Loan Repayment calculator to work out your minimum weekly, fortnightly or monthly repayments
For a full list of definitions for all things mortage related visit the Glossary.
|