The steps on the property ladder have widened in recent years, although it is still possible to reach the next level with astute decision making. Finding a dream home within 5 years remains the ultimate goal, and there are many opportunities waiting to be discovered! Australian households have evolved, so lending managers are now providing opportunities for singles, de facto partners, married couples and trusts to invest independently or by combining financial resources. So, could be time to take your next dream home step in the right direction? Since buying your first home can be a little stressful and confusing, allow us to break it down.
What are the different home buyer loan options?
Firstly, it’s worth understanding that financial markets fluctuate. Interest rates are responsive to outside influences, so you will require surety that you can make repayments without undue hardship during unexpected rate rises. For most of us, there is plenty of time to consider dream home options while saving for a deposit, but when the time draws near to apply for a loan, you will need to do a little refresh on your loan option knowledge.
So, it’s no secret that house prices have basically doubled in a worldwide financial correction during the past couple of decades. But thankfully, home values are stabilising, and the assistance of an industry leading lending manager at Mortgage House can pay big financial dividends. Let us break down some of the available home loan options:
Fixed Rate Home Loans: The peace of mind that comes with knowing your monthly repayment amount, regardless of the Reserve Bank of Australia’s interest rates or monetary policies.
Variable Rate Home Loans: Flexibility by not being locked-in to fixed repayment amounts, with risk during interest rate rises and opportunities to capitalise when interest rates lower.
Toggle Offset Home Loans: Combine peace of mind with flexibility by splitting your home loan 50% fixed – 50% variable. Utilise both rate types optimally to maximise long-term savings.
Portable Home Loans: Upgrade to your dream home without the headaches that come with exit fees, establishment fees, stamp duty and refinancing.
There are lots more home buyer loan products available at Mortgage House, including split home loans, interest only, bridging loans, low doc and low deposit options. If you are still feeling a little confused about your options (because let’s be real, this topic can sound foreign to some) or require more information, you can speak to a Mortgage House Lending Specialist for extra information.
What type of home loan should I look for?
Dream homes come in all shapes and sizes. Some people may be searching for a show stopping city apartment, while others are after a lush hideaway among tropical flowers. Plus, people also take different pathways for reaching their dream home objectives. Mortgage House responds once again with an unbeatable range of loan options.
First Home Buyer: Explore fixed, variable, split and construction loan opportunities.
Second Home Buyer: Equity is your dream home buyer advantage, with lots of loan options.
Investor: You can use the loan to generate both income and profit from the home purchase.
Refinancer: For moving with the times while focusing on finding your dream home.
Construction: Funds are drawn down during construction, saving you a bundle on interest.
Renovation: Undertake a dream home renovation without needing to move away from home.
Whether you are a first home buyer or a seasoned investor, if the search is on to find your dream home, Mortgage House provides the widest range of competitive loan rates available in Australia.
What should I know as a first home buyer?
The good news is that least half of all Australians are first home buyers once, so rest easing knowing you are not alone. It can seem daunting at first with forms to complete, documents to provide, lending criteria to satisfy, lending managers to meet, insurance obligations and more, but don’t fret. Buying your first home is a process that can take months or years to fructify, so each step can be taken at the appropriate time.
As a first home buyer, you should also be aware of are some of the additional expenses, including loan establishment fees and stamp duty. It’s also true that purchasing your dream home takes a combined effort these days. So, joint finances, with both partners contributing to the expenses can improve your chances of saving a bigger deposit towards your house purchase!
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