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Getting Pre-Approval For Home Loans

Getting Pre-Approval For Home Loans In Australia



Before you ever start physically looking at properties to buy, it’s important that you obtain a pre-approval for home loans in Australia. These pre-approvals are what give you a clear idea of whether or not a lender will give you money and how much. In addition, it will allow sellers to know that you mean business when you’re assessing their property as a potential buy.

The first step in obtaining a pre-approval for home loans in Australia is to talk with a lender. It doesn’t really matter which one you talk to, just speak to one you like. Give them your information so they can determine your eligibility. The lender will likely require at the bare minimum your personal information, income documents, a list of your assets, and a list of your liabilities. Some banks may require seeing more financial statements, such as your bank statements for the past three to six months.

Once a lender has all of this required information from you, they will do their assessment of your eligibility to receive home loans in Australia. Lenders are going to be looking at your income, your credit history, and assessing whether or not you will be eligible to repay the loan without defaulting. The lender will calculate your earnings and outgoings, including your loan repayment amount which can be determined from Loans Estminator www.loans.com.au/calculators/home-loan. They basically want to ensure that you’re a good investment for their money as they don’t want to risk not getting their money back in the future.

After the lender does their assessment, you’ll receive your pre-approval notice. This notice will describe what the lender is offering you as far as the maximum amount you can spend on buying a home. This will give you a price range to go by. You don’t need to take out a loan for the pre-approval amount. You can take out home loans in Australia for any amount up to the limit the lender puts on your approval notice. If you don’t want a home that costs the maximum amount the lender assessed, then simply tell your agent that you want to look for homes in a lower price range.

Home loans in Australia will become a lot less complicated for you once you’ve gotten pre-approved by a lender. This will give you the confidence you need to go to multiple lenders to seek the best interest rate possible on your mortgage when you find the home that you want to purchase. You should never spend your time assessing potential homes until you get a pre-approval estimate. This way you can avoid falling in love with a property that is way too far out of your price range. The best home loans

Home Loans by Loans.com.au in Australia are those that fit comfortably in your budget and provide you with a home that you enjoy.

Questions About Australian Home Loans

Home Loans in Australia

When you decide upon an Australian mortgage broker, you will need to ensure that you ask the right questions of them. A great mortgage broker can help you with the Australian home market, as well as home loans in Australia that can fit your particular situation. Mortgage brokers can make the mortgage process a lot less confusing and match you with the perfect lenders. Before you sign any contract, you will need to ask some critical questions of your mortgage broker. You will need to ask questions about the business and home loans in Australia at https://www.loans.com.au/. 

Questions About Home Loans in Australia

What exactly is the interest rate?

The answer will largely determine how much money you will pay on top of the amount that you will borrow. Over the term of the loan, interest will accrue over time. Since the average mortgage lasts more than 15 years, you will want to ensure that you can pay that money back.

Is the rate a promotion?

Many lenders give borrowers an attractive rate just to get them into the door. This rate is usually temporary, and your rate will go back to the standard level after a specified period. Learn whether the advertised interest rate is locked in or not. If the interest rate is not permanent, find out what is the standard rate. You don’t want to get a great rate on your home loans in Australia if you’re just going to pay the rest of it over the life of the loan.

Why did you pick this loan over other home loans in Australia?

Australian law states that lenders have to pick home loans in Australia at https://www.loans.com.au/calculators/home-loan that is “not unsuitable” for the borrower. What this means for you is that the lender has to select features, fees, and rates that best match your particular situation. Find out how the broker arrived at their decision, including which part of your circumstances they considered when making their selection.

How much of a deposit will I need to pay?

Learn how much of the deposit that the lender wants you to pay. You should also find out whether the deposit will affect the overall interest rate on your home loans in Australia. Sometimes your lender will give you a much better rate if you pay a bigger deposit. If you pay a smaller deposit, this could also mean that you might end up paying what is known as a lenders mortgage insurance premium.

Can I repay my loan early?

Repay your home loans in Australia quickly by overpaying the minimum payment whenever possible. Check with your broker to see if you can do this without paying the penalty. Some lenders may charge you an additional fee for you to make extra payments.

Mortgage Rate

Worst Mortgage Rate Mistakes To Avoid

We are all humans, and humans are prone to error. It is best (when possible) to learn from the mistakes that others have made in the past. Avoiding repeating those errors helps us grow as people and avoid pain. One area that can be instructional to us all is learning from the mistakes others have made about their mortgage rate.

Not Taking The Fixed-Mortgage Rate Option

There is always a difference between a fixed-rate and a variable-rate mortgage. The variable-rate is always a little lower than the fixed-rate. The fixed-rate stands at a premium as a mortgage rate because of the added security that it provides to a home buyer. That buyer will know exactly how much he or she will be paying on their mortgage in advance. There is in fact a premium value to having that information.

While it may be tempting to go for the lower variable mortgage rate, this is not advisable. The Loans.com.au Mortgage Rate on a variable loan can literally change at any time, and it is almost never in your favor. The variable mortgage rate is simply too big of a gamble on something that is such a cornerstone to a person’s life.

Ignoring Small Difference In Mortgage Rates

What is the difference between paying 2.25% and 2.5% on a mortgage? A huge difference! The two difference between those two numbers is in fact small, but the different in total payments over the life of the mortgage is enormous. Keep in mind that most people borrow their mortgage over a period of decades at a time. The interest difference between those two loans will add up to a surprisingly large amount for the person who does not zero in on even a small difference like this.

Not Putting Enough Money Down

A down payment is a big sign to a lender that the person they are lending to has the ability to repay the loan. The mortgage rate offered to someone who puts money down on the loan is significantly impacted by how much money that person is willing to put down on their loan. Anyone who makes significant strides towards putting down a significant down payment can probably count on receiving a better rate than if they had not done so.
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Buying More House Than One Can Afford

Everyone dreams of having the big house that will impress their friends and family. However, most of us cannot afford that dream house right off the bat. Purchasing more house than one can really afford is one of the most common mistakes people make relating to their mortgage. Avoid this by checking your ego and trying to tamp down how high you set your sights.

People sometimes get “home fever” and just want to become a homeowner. It is noble goal to have, but it is not something that a person should just rush into. There are so many ways to get oneself financial tangled up trying to do so. It is not worth the risk and the value to paying attention to details of one’s mortgage rate is essential to a happy financial life.

Mortgage Calculator

What Is The Value Of Using A Mortgage Calculator?

What is the purpose in pulling out a mortgage calculator to figure out something? Aren’t those just tools for the overly nerdy? Actually, the answer to that is no. In fact, a mortgage calculator may be one of the most powerful free tools that a person can use in their financial life.

The Most Expensive Purchase

Although many of us like to splurge from time to time on a purchase that we really probably shouldn’t, the fact remains that our house is something that we will inevitably spend the most money on. It is the single most expensive purchase that the vast majority of the public will ever make. As such, it deserves very careful attention and dedication to detail. The type of person who has a happy and healthy financial life is also the type of person who pays attention to how they are spending their money.

The Value A Mortgage Calculator

Mortgage Calculator at Loans.com.au has the function of showing a home buyer (or refinance prospect) what the payments may look like under a variety of potential mortgage conditions. It helps to estimate the size of payments that a person may have to make on their mortgage.

The value of a mortgage calculator is in its ability to help someone plan out their future a little more accurately. Planning ahead is always a virtue, but it is a particularly prudent thing to do when someone is trying to purchase a home.

Plugging In Variables

No one can know with absolute certainty what mortgage rates will look like in the future. A mortgage calculator will bring you no closer to knowing what rates are going to be in the future. However, it will help you to plan on how much you will need to save under a variety of conditions. It will show you that you are either saving enough, or perhaps that you need to kick things up a few notches. Either way, at least you will know what is going on.

There are some variables to consider when using a mortgage calculator. These are the factors that you will either need to outright know, or at least have some reasonable estimation of. A few of these factors are as follows:

  • Term Of The Mortgage
  • Estimated Interest Rate
  • Down Payment Amount

With just these three variables plugged in, the mortgage calculator can churn out a number that will give you a ballpark idea of how much your mortgage will be.
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Is It Time To Re-finance?

There is always a question in the minds of those who are contemplating re-financing their home. They want to know if now is the time to go through the trouble of doing so. It is a fair question. No one wants to slog through the re-financing process if they are not going to gain much from doing so financially.

The mortgage calculator helps in this realm as well. It shows what the payment will be if a person re-finances at a different rate. If that number is significantly lower, it may be time to consider re-financing.