What Does Getting A Home Loan In Australia Entail?
Shelter has always been a primary need for every human being since the beginning of existence this makes the real estate business one that would always be patronized. There have over time been other modifications to houses and their structures which make them more convenient to live in and capable of providing other things than just shelter. With all of these modifications came the term “luxury homes”.
Simply put luxury homes are homes that can provide more than just shelter to its residents. Sometimes it could be extra rooms, lawns, swimming pools, and basketball courts among other things.
A home could also be termed luxury relatively because of its price. A home that is very affordable to a person may not be seen as luxury to such a person irrespective of what the home contains.
A lot of People wish to own homes that they cannot pay for at once and this brought about home loans. Back in the day it was possible to a loan value ratio (LVR) of 100% meaning that the entire value of the house can be loaned out to you and you can pay back at a fixed rate per annum.
Times have changed in the industry and presently, only the ‘big 4’ banks can give you a loan of up to 95% of the home’s value. This means that if the value of the home is $100,000 for example, then, all you have to deposit for the house in the beginning would be $5,000.
This is however dependent on some factors. The decision of the lenders and banks will greatly depend on the amount you want to borrow, whether or not you have evidence of genuine savings and strong employment history as well as solid loan repayment history.
There are also lenders that are not banks such as RAMS that can as well offer up to 95% and add to up to 2% for lenders mortgage insurance (LMI) capitalization bringing the total to 97%. As you can already guess this depends on factors laid out above.
Opulent Finance has decided to give you some tips on what you can do to make getting that home loan easier for you when you apply for it.
Clear credit history; this means that your credit files should not contain any dents whatsoever meaning that all bills rents and loans such as credit card and other personal loans have been paid as and when due for the last six months.
Evidence of genuine savings; this has been mentioned earlier, in this you will have to show that you have in your savings an amount that is up to 5% of what is borrowed.
Stable employment; you are expected to have been in your current job for at least a year.
Minimal debts; it is sort of a general rule that those with up to 7% of the purchase price in unsecured debts are not approved. It so pays to minimize the number of credit card loans you take as well as personal loans before you apply for a home loan.
Good asset position; lenders are usually very impressed by a good asset position relative to one’s age and income.
Contact professionals; it does not hurt to seek more advice from professional Commercial Finance brokers in Melbourne and Mt. Waverley as well home loan brokers to get more tips on how to successfully land loans. Our finance brokers in Mt. Waverley and Glen Waverley would also help you with tips on Investment property loans all you have to do is contact them today.