Guide to home loans

When you take out a mortgage, your lender maintains an interest in your home until your debt is completely paid off. Home equity reflects the portion you own outright — that is, the difference between what your home is worth and the outstanding balance on your mortgage. To determine how much equity you have, you’ll first have to find out how much your property is worth. You can do this by hiring an assessor to conduct a formal valuation, using an online tool, or estimating using comparable sales in your area.Once you have your property’s value, simply subtract the amount still owed on your mortgage. If, for example, your property is valued at $800,000 and you owe $600,000, you’ve built up $200,000 of equity.

When you take out a mortgage, you enter a decades-long commitment. So what happens if you decide to move to a new home? These days, most banks and lenders offer a feature called loan portability. This lets you sell your current home and purchase a new one, all while keeping the same mortgage.This is especially useful considering most Australians are unlikely to stay put for more than 15 years. Many will move homes to accommodate a growing family, shave time off the daily commute, or simply out of a desire for new surroundings.Whatever the case, it’s reassuring knowing that you can avoid the hassle of refinancing if you outgrow your current residence. Below, we look at how porting your home loan works, along with the advantages and disadvantages.

The Federal Government’s new Family Home Guarantee scheme aims to make it easier for Australian single parents to own their own homes, with government guarantees on home loan deposits as low as 2%.

Selling a home can be tricky enough, but what about selling a home with a mortgage on it? While it’s not uncommon for mortgaged homes to be put on the market, if you’ve never done it before you’re bound to have plenty of questions.For one, what happens if your home sells for less than expected? And are there any fees? What about if you want to transfer your home loan from one property to another? Whatever the reason you’ve decided to sell, we lay out all the key information below. 

If you’re planning to sell a property, knowing you’ll have to pay capital gains tax can take a lot of the wind out of your sails. But did you know there are ways to minimise the amount you pay, or even avoid it altogether?Of course, when it comes to tax issues, it’s always a good idea to seek advice from a registered tax agent or accountant. But for a brief overview of the various concessions and exemptions available to property owners, read on.

If you’re an older Australian who owns their own home, you might have heard about using a reverse mortgage as a way to borrow money using the equity you’ve built up in your home.

Capital Gains Tax (CGT) was introduced in Australia in 1985 and applies to assets you sell that were acquired since then (though there are exceptions). Importantly, CGT is part of your income tax and not a standalone tax as the name might suggest. But how is CGT calculated, what exactly does it apply to and are there any ways to reduce the amount you pay? We’ll go through these questions and more so you won’t be caught off-guard when tax time comes.

Whether you’re searching for your first home loan or you're in the process of paying one off, there are an abundance of home loan features you’ve likely come across: everything from offset accounts and extra repayments to split loan facilities.

Taking out a home loan can be a pretty clear cut deal focused solely on securing financing to help you purchase property. But if you want to sort out a few other financial needs with the same institution, you might consider a packaged home loan.Many lenders present packages as a way for customers to save money across the life of their mortgage, alongside other financial products. An interest rate discount is on the table, along with more cost-saving features than a ‘no frills’ home loan, in exchange for you signing up to a bundle deal of the institution’s other products like credit cards, insurance or savings accounts. It sounds pretty swish, but it’s super important to consider all the loan costs, the additional features and discounted interest rate and size it up against other home loan types. Then compare this to the overall cost of holding the extra financial products separately or with other institutions. It may be convenient to have everything in one package, but it’s not automatically the most affordable option, even with the discounted interest rate.Once you’ve done your mathematical due diligence, then you can check out the packaged home loan options below.

Topping up or increasing your home loan can be a good way to access extra cash for those big ticket purchases, especially when compared to other credit options. Basically, it allows you to borrow additional funds against the equity you’ve built up in your property, which you can then use to upgrade your car, pay for a holiday and more.

So you’ve acquired a home loan, settled into your brand new property and gotten into the habit of paying it down each month. While you might be confident you’ve got it all under control, there are bound to be a few things you’re a little bit uncertain about. For those who have a home loan but need a refresher on all its features, we’ve answered a few common questions below.

When it comes to buying and selling property in Australia, the process seems to go on forever and can often be quite complicated. So to help understand the steps of conveyancing, we asked Chief Executive at My Place Conveyancing, David King to give us a rundown.

If you’re a first home buyer looking to snag a property, did you know there’s another Government Scheme to help you enter the market sooner?  

As a first home buyer, there are a number of things you’ll need to learn fast, like interest rates, First Home Buyers schemes and insurance options. So with the news that two big banks have been accused of selling overpriced mortgage protection policies to confused and inexperienced first home buyers, we thought it was time to clear things up and explain the difference between two similar sounding insurances you might consider for your first home.

Whether real estate prices are on the rise or economic conditions are making it more difficult to save, buying your first property can be a hard personal finance nut to crack. That’s why it’s important to look at all your options as a first home buyer, to see how you can get a foot in the door earlier. 

If you are a freelancer, self employed worker, small business owner or contract worker getting a standard home loan can be difficult when you don’t have proof of salary documents like payslips or group certificates. This is where a low doc home loan comes in.

If you are one of the many first home buyers out there struggling to save up that ideal 20% deposit, you might be happy to hear you can get in earlier with just a 5% deposit. But before you think “where do I apply?”, we should mention there’s a price to pay and it’s called lenders mortgage insurance. 

The feeling of picking up the keys to your very first home is priceless. No more rent hikes, evictions or inspections to deal with – and you can even own a pet without landlord drama! Plus, purchasing property is generally a good investment, as your home should appreciate in value over time.

Have you built up some equity in your home through extra repayments or your property has appreciated in value? Then you could be eligible for a line of credit loan that allows you to draw on a portion of that amount to fund things like an upcoming renovation or new family car.

When you begin your home loan search, the headline rate isn’t the only thing you should consider, as there are many home loan features that could save you big bucks and provide you with great flexibility down the track.

An important part of choosing a home loan is getting good advice. One method homeseekers use is speaking to a home loan or mortgage broker, who will not only hunt down a great home loan deal on your behalf but will also run you through everything from your borrowing power to the features that could be right for you and even help you complete the home loan application.

Relaxing on your lounge sipping a glass of red you start thinking it’s about time we tear out that 1950’s kitchen and renovate, building a modern, more usable kitchen. Or maybe you start daydreaming about how a fresh coat of paint will brighten your living area. Regardless of how big or small your home renovation project may be you still need to find the funds to make it happen. 

Shopping for a home loan is an exciting time - after all, you’re on your way to owning your dream home! But it can also be a little overwhelming. Between interest rates, property jargon and lenders giving you the run around, it can start to get pretty stressful.

Absolutely nuthin’

Mortgage brokers can offer a valuable service if you’re searching for a home loan. They can make the whole process a lot easier, smoother and sometimes, a lot cheaper. But because our main aim at Mozo is to save you money, we can’t help but dig into just what exactly it will cost you for the convenience.

If you’re like most people, your home is the most expensive thing you’ll ever buy. You probably scrimped, saved and took out a home loan to get your hands on it.

A brand new apartment at a discounted price - sounds like an investors dream right?

We’ve witnessed the dummy spits, tantrums and blowups on reality renovation TV shows but there are also some great pieces of advice when it comes to home makeovers that we can take away from these shows. Through the contestant’s tears and heartache to renovate an ideal children’s bedroom or a chic bathroom we’ve pulled out 5 key renovation messages.  So when you’re about to get stuck into your own renovations, minimize stress and drama by following these reality TV red hot tips.

Looking at updating your kitchen, bathroom or garden this year? Well here are some renovation trends to consider so your home makeover is modern, chic and most importantly a place where you want to spend time. Let us take you through the sizzling kitchen trends, hot bathroom fads, fashionable interior designs and renovation garden fazes of 2016.

Any investor will know that finding a mortgage with a low interest rate is important. But a savvy investor will take things a step further by hunting down an investment loan that not only has a great rate but competitive features too.

Renovations are the perfect opportunity to make your home green and sustainable. Creating a sustainable home is no longer just a trend, it's part of our daily lives and crucial to reducing the impact we have on the environment. It doesn’t matter how small or large the renovation is, there’s always an opening to lighten your environmental footprint for short and long term benefits. Quality, environmental and sustainable design principles will save you thousands of dollars on energy and water bills while creating a more livable and healthier home. So follow our guide on how to incorporate sustainable principle designs into your home renovation. 

Whether you’re a first time investor wanting to get a foot in the property door or an experienced property pro after an addition to your portfolio, there’s one main thing you’ll probably be on the hunt for when it comes to your investment loan - a low interest rate.

Shut your eyes and visualise your renovation project. Then, if you’re handy with a pencil, sketch it on a piece of paper. It may seem a little silly but this is how the pros operate. Drawing up a mind map is a great way to present your ideas to the renovation professionals. This big picture will also guide you through the renovation process, keep you on track and prevent you from spending unnecessarily. A solid plan also helps deter renovation surprises that can pop up along the way, resulting in additional costs that could break the bank.

Who doesn’t like to earn a quick buck? The renovate and flip strategy is all about just that. It’s the concept of buying a rundown property below market price, jazzing it up to increase its value then reselling it just months later for a fast profit. It’s easy said than done and keep in mind, a flip can flop. However if you’re looking to flip follow this guide for renovation tips and more so you finish sunny side up!

You’ve read the weekend paper, gone for a lovely stroll and had your Sunday coffee, now you’re twiddling your thumbs looking for something to do. Look no more, we’ve got the solution, pick up a hammer or paintbrush and get to work on a quick and easy renovation task that will add value to your home. Given there’s no shortage of ideas when it comes to DIY home renos, find some time over the weekend, don’t lounge around and pick up a tool and get cracking. While each home is unique, here are 10 projects that most homeowners would benefit from and best of all, you can knock them over in a weekend.

Home renovation jobs can be endless from small scale tasks such as replacing light fittings to larger sized changes like building a pool! However, if you’re looking to add value to your home you don’t necessarily have to turn to the mammoth jobs requiring builders, architects and tradies. There are plenty of jobs you can do yourself! So pull out some old rags and get cracking on these DIY renovations that home reno experts say add value.

We’re so excited for you. You’ve finally found the house of your dreams! It has a gorgeous fruit bearing apple tree in the garden, marble kitchen bench top and stain-glass windows you’ve always wanted. But what are you doing going to the auction with an empty bank balance? We’ve got enough tips and traps to tell you, enough to fill up a pantry anyway. Read on to see how you can better arm yourself before going to auction.

So you’re thinking about buying off the plan. That’s wonderful! The anticipation of waiting to see your new home or investment property come to fruition would be part nerve-wracking and part-exciting at the the same time. But, will it be as spectacular as the artist’s impression? Will it be as spacious as you initially thought? Will the builder commit to construction till the very end?

Hmmm, let’s see. Do you go for old world charm, or new and fancy? Is it an historical beauty with unending character you’re after, or fresh, clean corners for the uncluttered lifestyle you crave? It’s hard when you’re torn between two worlds and have a soft spot for both, but in the end you’ve got to choose. Then again, if you purchase the federation style you’ve loved forever, you could always put some cashola aside to renovate as you please. Style combo here we come! It’s vintage chic, dontcha know?

Do you want to purchase a property for living? Or would you buy it as an investment instead? Owner-occupier works really well if you have a dual income household with one of you earning more than the average salary. But if you’re a single income household, or dual income both with average salaries, your attitude toward buying vs renting may vary. Let’s have a closer look:

Whether you’re a novice home buyer or seasoned pro, investing in property can be a perplexing time and sometimes confusing. When is the best time to buy anyway? There’s a buying trend we need to follow, right?

So you’ve scoured the postcode of your dreams and inspected what seems to be an unending amount of properties to come to the end of the road. House after house, hour after hour. And finally, a place you can soon call home.

Are you sometimes a little rash when making big decisions? Or are you a careful planner that researches for hours, days, months before making an important move like buying a house?

Do you own an investment property or perhaps you have a whole portfolio under your ownership belt? Well lucky you because one of the major perks of being a property investor in Australia - if your property is negatively geared - is the range of deductions you can make on your taxable income at tax time.

You’re gearing up to put that big ‘for sale’ sign up out the front of your place but before you do why not improve the value of your place. There are plenty of easy, quick and cost-effective DIY tasks to undertake that will ensure you get the best resale price for your home.

When was the last time you looked at how the Australian dollar is fairing on the market? May be on the rise, but according to foreign investors, it’s still pretty low. What does that mean to you and I? Everything. From lower currency exchange when travelling overseas to inflated prices on average items we buy, day to day.

Whether you’re upgrading from a bachelor pad, downsizing from an empty nest, moving across country or just looking for something a little more your style, moving out of your home can be a huge upheaval.

You’ve probably heard that Labor is proposing significant reforms to negative gearing in an attempt to make homeownership in Australia more affordable. But what exactly does this term mean?

Investing in property seems to be all the rage these days and it’s no surprise when you consider the countless benefits that come with it like capital returns and rental yields.

When you’re ready to sell up and move into a new home, there are heaps of things to consider, and it pays to have a strategy in place, rather than just diving right in. Generally speaking, the goals for that strategy are to a) get a great price on your old home and b) secure the deed to your brand new dream home. And, with a little luck, you’ll achieve those goals while c) keeping your sanity intact.

There comes a time in most people’s lives when, like a hermit crab, you’ve outgrown your old home. Maybe it’s not comfortable anymore, maybe you need more room or less, or maybe it’s not in the ideal location.

Selling your house can be a stressful experience - you worry about getting the right price, about finding a new place, about your Great Aunt Cathy’s ancient crystal dinner set getting smashed to bits in the move.

A.K.A - What to expect when you’re inspecting

Are you set on getting a foot in the property door but are unsure of where to start?

When it comes to paying off your home loan, you’ll be able to choose between two options: pay off both the principal and interest, or pay interest only. What you decide will depend on your reasons for buying the property as well as your financial circumstances. For a breakdown of what you need to know about each repayment type and what they mean for owner occupiers and investors, read on below.

We’ve all heard the advice and read the headlines about how property dreams are made in spring. It’s supposedly the best time of the year to sell and buy, but depending on your circumstances, that may not be entirely true. If you’re about to take the step towards buying or selling your home but you’re still unsure if it’s the right move for you, a good old pro and con list can help you.

Here’s a horror story you might have heard before: a young couple decide to renovate their new house. They choose new tiles, re-do the kitchen and knock out a wall. But halfway through pulling out the bathroom tub, their bank account runs dry. They head to the bank to borrow more money - and are rejected.

Are you a first home buyer intrigued by the Australian Federal Government’s First Home Super Saver Scheme (FHSS)? The scheme has been running since July 2017, and it’s designed to help Aussies like you achieve your homeownership dreams sooner by allowing you to build your home deposit inside your super. 

If you’ve been following the banking inquiry news, you might have heard the term rate-tracker loan thrown around. The introduction of more rate-tracker loan products was suggested as one reform that could help Aussies and their banks get along a little better.

While buying a property is an exciting time, what’s not exciting is getting your head around all the home buying number crunching. Before you can even begin to think about what your loan repayment costs will be or how much stamp duty you’ll need to pay, you’ll need to save up a deposit.

Taking out a home loan to purchase a property can be exciting, but what can often dampen your enthusiasm is all the complicated home loan jargon that gets thrown around in the process.In fact, according to a survey by ME Bank, only 41% of Aussies are confident they know enough to find the right home loan for their situation.So if you’re feeling a little frazzled by all the home loan mumbo jumbo, the below guide is for you. Read on as we run through all of the most common terms and meanings you'll want to know about.

That moment when the real estate agent hands over the keys to your new property is priceless. But before you get to the final approval stage and land yourself a standout home loan deal, there are a few things you’ll need to do.

When’s the last time you revisited your home loan to see if it’s still competitive? Chances are you may be signed up with an outdated mortgage with a high interest rate and not much flexibility.

From the big bank players to the small online only lenders, the mortgage world offers plenty of choice when it comes to selecting a home loan lender.

When you begin your search for a mortgage, you’ll soon discover there are a great range of home loans available. So to help you narrow down the right one for your financial situation, here are the main types of home loans in Australia:

Thinking about buying your first home? Perhaps it’s an investment property? No matter the type of buyer you are, if the Australian property market is calling your name but you’re unsure of your borrowing power, this guide is here to help.

Gone are the days when Aussies would only take out a home loan with a big bank. Nowadays, there’s no shortage of online lenders offering some of the lowest rates in the market, helping Australians save thousands, if not tens of thousands over the life of their loans. You might be wondering who these online lenders are and if they’re really trustworthy. That’s where our guide comes in. We’ll give you a full run-down of the kinds of lenders out there, and discuss just how much you could save by making the switch to an online lender.

It may have been over seven years since the RBA last moved the official cash rate upwards, but that doesn't mean Australia's historically low rates will last forever. In fact, the RBA recently publicised its desire to break the streak of rate holds by forecasting a rate lift sometime in the future. 

Australian's have enjoyed some seriously low home loan rates for a long time, but the winds may finally be changing with recent indications from RBA Governor Philip Lowe hinting that a rate rise may finally be on the way. 

Relationships often start out with plenty of romance, where you are swept off your feet by all that is promised. But just like with any union, your partnership with your bank may see it’s honeymoon stage come to an end.

With the Reserve Bank of Australia making three cuts to the official cash rate in 2019, and another two in March 2020, home loans rates have been tumbling. So if you haven’t taken a look at your home loan rate in a while, now might be as good a time as ever to take things into your own hands and make payday come early by switching to a better home loan deal. 

It won't come as a shock, but house and apartment prices in Australia are expensive. According to 2020 research from insurance provider Budget Direct, the median national property price is $549,918 and in cities like Sydney and Melbourne that figure is far higher.

Reducing the amount of interest on your home loan takes more than just a competitive rate. The features you choose also play an essential role.

If you’ve made it to the pre-approval stage of the property buying process it means you’re nearing the finish line. Congrats!

You’ve probably heard that the key to landing your first home is taking out a mortgage but what exactly is the process and how can you find the best home loan deal for you?

Buying property in Australia is a popular investment option, especially as house prices in recent years have increased. But investing in property isn’t for everyone, and despite the gains of recent years, investing in property doesn’t always deliver positive returns.

If you’re thinking about purchasing a property, before you start eyeing off that penthouse suite the first thing you should think about is how much you can realistically afford to repay each month, as this will ultimately determine the amount you should borrow.

When taking out a home loan in Australia, one term you're sure to see within the mortgage product information is “LVR". But what does that refer to, and why is it so important? Our quick guide can help.

With property prices around Australia skyrocketing in recent years, saving up a sizeable deposit isn’t an easy feat, especially when you are paying rent. The median house price in Australia’s capital cities is now $595,000, more if you live in Sydney and Melbourne. This means to save the recommended 20% deposit, you’d need savings of $119,000.

Attention first home buyers: the squeeze is on. You’re in danger of borrowing too much for an over-priced home. But don’t despair. Mozo’s money experts give you three weapons that never fail to bust through market hype and deliver happy home ownership.

Saving for your first home? First home saver accounts may have been scrapped by the Abbott Government but there are plenty of other ways you can boost your savings pile for that first home deposit. Here's some ideas to get you started. 

The journey of buying your first home can be a daunting one, so it can be helpful to know what happens when, who does what and what you need look out for. That's why we've pulled together this step-by-step guide to help you become a first time property pro.

You’ve found the property of your dreams, got the home loan sorted and have the settlement date circled in red on the calendar. What else is left to do than pop the champagne corks? Get insurance, that’s what. Here’s what you’ll need to know.

You may be emotionally ready to settle down but how do you know you are financially ready to buy your first home? Taking on a mortgage is one of the biggest financial decisions you’ll ever make, so before you take the plunge it’s a good idea to take a moment to consider all the expenses attached to owning your first home.

Getting ready to apply for your first home loan? Run through this checklist first so that your credit profile will be ship shape and you'll have the best chance of getting approved.

According to the Australian Bureau of Statistics, Australia has one of the highest levels of home ownership in the world. However getting a foot in the property door isn’t always easy and choosing a home loan can often be a major headache. So before you rush into signing up with any old home loan, think about the type of loan that’s right for you.

Ready to own your nest? From finding a good loan to pinpointing your criteria, plus lifestyle factors to consider, see this checklist before you begin the big search.

Have you ever considered how the frequency of your home loan repayments could affect how much you pay overall?

With a 1.99% p.a. variable interest rate (1.99% p.a. comparison rate*), no fees and a reputation for being among the first lenders to pass RBA rate cuts onto customers, online Aussie lender Athena is rewriting home loan history.

In case you missed the news, home loan rates have gone off a cliff in the past two years in the wake of six Reserve Bank interest rate cuts, including one last November. And now that the dust has settled, Aussie homeowners have a real opportunity in 2021 to take advantage of some of the lowest rates on record.Borrowers looking for the sharpest rates will need to look beyond the big banks though. Rival lenders have taken the spotlight: not only dishing up super low variable and fixed rates, but also new features and extra incentives.It’s little wonder that rival lenders are seeing a spike in customers switching their home loans from the major banks, with some genuinely big savings now available for those who are prepared to shop around.So, if you're sick of paying more than you need to on your home loan, you’ll want to get acquainted with these killer lenders taking on the big banks in 2021.

Being at an auction in many capitals right now can feel like a poorly run game of musical chairs. Most players will leave empty-handed and quite possibly bruised.This is what happens when people want and need homes, but for whatever reason, the rules of the game favour just a few at the party.Some numbers can help explain how this all works, not least of which are figures showing us what's available.For example, residential property listings around the country dropped in May of this year by 6% to 245,953, down from 262,617 in April, according to SQM Research. That's more than 15,000 fewer properties available to buyers, at a time when there are clearly many people who want a seat in the game.And in a city like Sydney, which garners most of the property headlines, there was a notable drop this May in the number of homes advertised for at least 180 days (4,248), compared to May of 2020 (6,589). SQM says this represents a 36% fall.Are there any new ads for homes going up then?

$8.29 trillion - it’s a barely conceivable figure, but according to quarterly figures released by the Australian Bureau of Statistics (ABS) yesterday, that number represents the new total value of residential dwellings in Australia.