Guide to home loans

Interest rates, mortgage fees, introductory rates and first home grants... with so much to consider, it's easy to end up settling for a dud. Never fear: Mozo's guide to home loans will answer all your questions including a few you forgot to ask.

What is a package home loan?

What is a package home loan?

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.

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How to better manage your home loan

How to better manage your home loan

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.

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What is a home loan top-up and is it right for you?

What is a home loan top-up and is it right for you?

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.

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Conveyancing part 1: What is the conveyancing process?

Conveyancing part 1: What is the conveyancing process?

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.

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Understanding the difference between Mortgage Insurance and Mortgage Protection Insurance

Understanding the difference between Mortgage Insurance and Mortgage Protection Insurance

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.

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First home owners grant - how to apply in your state

First home owners grant - how to apply in your state

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. 

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Low doc home loans - a guide for the self employed

Low doc home loans - a guide for the self employed

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.

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Lenders mortgage insurance explained

Lenders mortgage insurance explained

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. 

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First home buyers - what you need to know

First home buyers - what you need to know

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.

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Line of credit home loans

Line of credit home loans

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.

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Home loan features in a nutshell

Home loan features in a nutshell

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.

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Home Loan Brokers and Home Loan Negotiators

Home Loan Brokers and Home Loan Negotiators

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.

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 The best way to fund your home renovation

The best way to fund your home renovation

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. 

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Mortgage brokers vs banks: which is the right choice?

Mortgage brokers vs banks: which is the right choice?

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.

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Mortgage broker fees

Mortgage broker fees

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.

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What reality TV shows like The Block and House Rules teach us about renovating

What reality TV shows like The Block and House Rules teach us about renovating

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.

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The Biggest Renovation Trends of 2016

The Biggest Renovation Trends of 2016

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.

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Features to look for in an investment loan

Features to look for in an investment loan

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.

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Green renovation tips for a more sustainable home

Green renovation tips for a more sustainable home

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. 

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How to get the best investment loan deal

How to get the best investment loan deal

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.

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10 Tips to renovating without breaking the bank

10 Tips to renovating without breaking the bank

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.

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Renovation tips for investors looking to flip

Renovation tips for investors looking to flip

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!

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10 Quick weekend renos to add value to your home

10 Quick weekend renos to add value to your home

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.

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Boost the value of your place with these DIY renovations

Boost the value of your place with these DIY renovations

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.

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Tips for buying at auction

Tips for buying at auction

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.

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Buying off the plan financial must knows

Buying off the plan financial must knows

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?

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Old vs new - what type of property should you go for?

Old vs new - what type of property should you go for?

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?

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Why buying your home beats renting

Why buying your home beats renting

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:

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Home buying negotiation tips

Home buying negotiation tips

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?

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The 5 must-do building checks

The 5 must-do building checks

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.

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Home buying mistakes to avoid

Home buying mistakes to avoid

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?

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6 investment tax tips for a bumper return

6 investment tax tips for a bumper return

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.

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Buying in an inflated market

Buying in an inflated market

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.

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How to improve the value of your home

How to improve the value of your home

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.

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How does negative gearing work?

How does negative gearing work?

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?

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Sell or buy, which to do first?

Sell or buy, which to do first?

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.

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Moving or renovating?

Moving or renovating?

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.

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Choosing and signing with an agent

Choosing and signing with an agent

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.

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Home loan repayments: principal and interest vs. interest only

Home loan repayments: principal and interest vs. interest only

Congratulations, you’re finally ready to take the plunge into the Aussie property market! After years of strict budgeting - we’re talking economic eating, retail restraint and thrifty thinking - you’re finally ready to stump up the up-front costs associated with buying a house or apartment.

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Is Spring really your property season?

Is Spring really your property season?

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.

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How much deposit do I need for a home loan?

How much deposit do I need for a home loan?

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.

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How much can I borrow?

How much can I borrow?

Is the Australian property market calling your name but you are unsure of your borrowing power? This guide is here to help. We’ll run you through all the major costs involved with purchasing a property, to give you a clear idea of how much you can afford to borrow and what you’ll need to budget for. Start by...

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Types of home loans - the pros & cons

Types of home loans - the pros & cons

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:

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Refinancing tips & tricks

Refinancing tips & tricks

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.

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Sealing the home loan deal

Sealing the home loan deal

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.

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How a rate rise could affect you

How a rate rise could affect you

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. 

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Rate rise or refinance? The choice is yours

Rate rise or refinance? The choice is yours

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. 

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Give yourself an instant pay rise by refinancing your home loan 

Give yourself an instant pay rise by refinancing your home loan 

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. 

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Zero deposit home loans

Zero deposit home loans

With the average house price in Australia sitting at almost $660,000, as a first home buyer saving the recommended 20% deposit means you’d need to come up with a whopping $132,000.

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Offset account explained

Offset account explained

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.

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How to get a home loan

How to get a home loan

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?

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Buying an investment property

Buying an investment property

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.

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Home loan repayments - how much can I afford to repay?

Home loan repayments - how much can I afford to repay?

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.

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Loan to value ratio: What is LVR?

Loan to value ratio: What is LVR?

When it comes to taking out a home loan in Australia, one of the common terms you’ll see sitting within the mortgage product information is “LVR". But if you’re one of the many home hunters wondering “what is LVR?” and have no clue what the abbreviation stands for, let this quick guide answer the question.

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Guarantor home loans explained and how to apply

Guarantor home loans explained and how to apply

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.

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What you need to know about insuring your first home

What you need to know about insuring your first home

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.

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5 money tests to pass before getting your first mortgage

5 money tests to pass before getting your first mortgage

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.

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Top things to consider when choosing a home loan

Top things to consider when choosing a home loan

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.

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Home loan news

The Mozo news desk delivers the mortgage updates you need with the whitened smile you trust.

 Housing demand, rents fall as overseas migration comes to a halt

Housing demand, rents fall as overseas migration comes to a halt

Border closures caused by the coronavirus pandemic are expected to impact housing demand by between 129,000 and 232,000 dwellings over the next three years, according to new research by the National Housing Finance and Investment Corporation (NHFIC).Housing demand in capital cities is typically fuelled by population growth, but the NHFIC estimates Australia’s population could fall by up to 214,000 between 2019 and 2021. This would represent the steepest decline since World War I.Driving this contraction is the closure of international borders, which has brought the number of people arriving to Australia’s shores to a near standstill. This has been most keenly felt in the capital cities, where new arrivals tend to gravitate. Last year, 84% of migrants to Australia settled in a capital city, with three quarters opting for Sydney or Melbourne. The decrease in underlying demand adds to the mounting problems currently facing the construction sector. After about 162,000 homes were built in 2019, the NHFIC estimates this could drop to 137,000 this year, and 108,000 in 2021. 

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 5 questions to ask when choosing a home loan

5 questions to ask when choosing a home loan

From choosing your ideal suburb to furnishing your new digs, there’s plenty to get excited about when buying a home. For most people, the first thing on the to-do list should be finding a perfect home loan fit.There’s heaps of choice in this area. Even with a single lender, there could be a dozen home loan options to investigate. Plus, during times of economic uncertainty (aka the COVID-19 world) the details of these offerings can change regularly.If you’ve skimmed the options and are feeling overwhelmed, here are some of the questions you should be asking. It’s kind of like a personality quiz, but for home loans.

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