How much money can I borrow?
The amounts you may able to borrow are varying from lender to lender and mainly determined by your financial situation. Your income, current savings, credit history and expenses etc are the key factors that help the lender to identify your borrowing capacity.
Often it pays good value if you shop around and here we can help. Finmortg brokers help you to make a complete individual assessment of your financial situation and help you to arrange a loan that suits your objective.
How much savings or deposit do I need?
The amount of savings or deposit mainly depends on factors like lender’s lending criteria, the amount of home loans etc. Generally, a minimum 5-10% of the purchase price is required as a deposit if you are applying for owner occupied while a minimum of 10% of the purchase price for investment property. The good news is that the lending market is very competitive and often it is possible to find a good deal with less requirement of saving or deposit which may match with your circumstances.
What is LVR?
LVR stands for Loan to value ratio is the percentage of the money you want to borrow against home loans compared to the value of the property being used as security. Let’s say, a property valued at $750,000 again which you’d like to borrow $500,000 returns an LVR of 66%. A higher LVR generally means a higher risk to the lender. With a higher LVR, the lender may charge extra fees and sometimes you might have larger home loans repayments.
LMI or Lenders Mortgage Insurance is a one-off insurance payment which protects your lender if you ever default or no longer able to make your repayments. LMI is commonly paid when your LVR is or higher than 80%. LMI premiums vary depending on the lender, loan and the LMI provider. Remember. LMI should not be mistaken for Mortgage Protection Insurance which covers your mortgage repayments in the event of death, sickness, unemployment or disability.
Our expert mortgage brokers can help you to understand, explain the LMI costs and how this may impact your home loan.
How Variable & Fixed rate are different?
Variable interest rate fluctuates over the period of loan term according to the market index. It offers flexibility and comes with advantages like the option to lower repayments, faster paying off, redraw facilities and so on. While A fixed rate allows you to lock the interest rate (typically for 1 to 5 years). This safeguard gives your greater peace of mind but may have restrictions on making additional repayments and may need to pay a large fee for ending the fixed rate period on your loan early.
Finmortg mortgage Brokers help you to identify and assess your needs and weigh up your options and choose the right home loans for you.
How to choose the right home loan?
With an immense competition in the marker, undoubtedly a range of home loans products are wide available in the market. The catch is to choose the right one. Before selecting the home loan, try to understand your loan objective, how strong are your financial situation and your loan qualification.
At Finmortg Brokers, we do a full assessment and run exclusive home loan qualifier software to help you to find the suitable home loans deal by comparing hundred of loan products offered by our panel of lenders. And the best part is, all these pre-works are free of cost!
Can’t find the solution you’re looking for? Speak to our friendly staff on 0416 866 758