Home Loans in Australia
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.