The A-Z of home loan terms and jargon at your fingertips. If there is a home loan type or product feature worth knowing about you’ll find a detailed guide on it here. No matter whether you’re buying your first home or your tenth investment property, the more informed you are, the better your chance of getting the best deal.
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.
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.
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.
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 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.
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.
So you’ve saved up a deposit and are ready to take the plunge into the Aussie property market. Now there’s just the small matter of organising a home loan. And considering this is an expense that you could potentially carry for the next 30 years, you’re going to want to do it right.One of the major decisions you’ll have to make when setting up your home loan is whether you want to make:
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: