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LOAN REPAYMENTS
Thinking of purchasing a property, you can get estimated loan repayments via this link to find out repayment amounts on different loan amounts, rates and the length of the loan. You can also compare repayments on different rates.
Once you have done your budget and estimated what you can afford, based on the loan repayment estimates you can then calculate your borrowing capacity via the below link or contact us and we can estimate these for you, obligation free
Once you have done your budget and estimated what you can afford, based on the loan repayment estimates you can then calculate your borrowing capacity via the below link or contact us and we can estimate these for you, obligation free
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YOUR BORROWING POWER
Before you start looking for a property to buy, you need to get your finances in order. Remember to consider extra costs like stamp duty, legal fees, lenders' mortgage insurance, land and water rates, home and contents insurance and repairs when working out if you can afford a home loan.
Once you check what loan repayments you can afford via the above link, you can then check your borrowing capacity via this link or contact us and we can estimate these for you, obligation free.
Once you check what loan repayments you can afford via the above link, you can then check your borrowing capacity via this link or contact us and we can estimate these for you, obligation free.
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STAMP DUTY
Stamp Duty now known as Transfer Duty is a charge which is applied by state governments in Australia on transactions relating to the transfer of land or property. It is paid upfront and needs to be budgeted for in addition to your loan deposit.
The amount of stamp duty you are required to pay differs in each state, however there are three factors, along with the value of the property, that determine how much stamp duty you will pay. Contributing factors include:1. whether or not the property is a primary residence or investment property;2. whether or not you are a first home buyer; and3. if you are purchasing an established home, a new home or vacant land purchasing property.
The amount of stamp duty you are required to pay differs in each state, however there are three factors, along with the value of the property, that determine how much stamp duty you will pay. Contributing factors include:1. whether or not the property is a primary residence or investment property;2. whether or not you are a first home buyer; and3. if you are purchasing an established home, a new home or vacant land purchasing property.
some useful tips
HOW interest rates WORK
RATE TYPE HOW IT WORKS Variable rate The rate goes up and down at the discretion of the lender. Advantages - Usually able to make extra repayments You benefit when rates go down Disadvantages - Your lender may put the rate up any time Fixed rate Allows you to lock in an interest rate for a period of 1-5 years. May be offered for an introductory or honeymoon period. Reverts to a variable rate at the end of the period. Advantages - Your interest rate will not go up during the fixed rate period You know how much your repayments in the fixed rate period Disadvantages - Won't benefit from falling interest rates May not be able to make extra repayments May be charged a fee for terminating the fixed rate period early
LOAN FEATURES
RATE TYPE HOW IT WORKS Redraw facility Enables you to pay in more when you can that you may redraw later. Advantages The more you pay in helps to reduce your interest Disadvantages In some cases, a lender may not release your redraw funds when you want them (so check loan conditions). Offset account A transaction account attached to your home loan. The amount in your account is offset against your loan balance to reduce interest payable. Advantages - The more you have in your offset account the more you save Disadvantages - Offset account home loans usually attract an annual fee.
lvr - lOAN TO VALUE RATIO
When you are working out what amount you can borrow to purchase a property, the size of deposit you need to save and whether you are eligible for a particular mortgage product, the loan-to-value ratio (LVR) is one of the most important considerations.
In the simplest terms, the LVR is the percentage of the property's value, as assessed by the lender that your loan equates to. Therefore, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80% of the poperty value, making your LVR 80%.
The LVR is important because different lenders and loan types have different maximum LVRs, and some lenders will only lend up to a certain LVR for properties in certain areas. Most lenders will finance 80% LVR, for loans over 80% LVR lenders mortgage insurance (LMI) is required.
In the simplest terms, the LVR is the percentage of the property's value, as assessed by the lender that your loan equates to. Therefore, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80% of the poperty value, making your LVR 80%.
The LVR is important because different lenders and loan types have different maximum LVRs, and some lenders will only lend up to a certain LVR for properties in certain areas. Most lenders will finance 80% LVR, for loans over 80% LVR lenders mortgage insurance (LMI) is required.
LMI - LENDERS MORTGAGE INSURANCE
As mentioned previously, as a rule loans over 80% incurr a LMI fee at the cost to the consumer, this is Lenders Mortgage Insurance and abreviated to LMI. The amount of LMI fee you will be required to pay depends on the percentage you borrow over the 80% LVR margin. Of course the higher the LVR the more the LMI will cost you.
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