Rands Tax & Business Consultants

Sally Pietersz Mortgage

If you are in the process of venturing into the Australian property market, this article is a must to read:


Purchasing a house in Australia will cost you a substantial investment and you will need a home loan for the investment. Before taking a home loan, you may count the following factors;


Credit Score 

Your credit score concludes one aspect of your financial character. The higher the credit rating, the higher the probability that the lender will approve your home loan. Unlike a diminished credit history, you will have the access to main-tier lenders and you will not have to pursue a limited range of lenders with higher rates and fees.


Family Budget after the loan

It is equally important to focus on the loan repayment you could afford to pay off your loan after allocating your living expenses and other financial commitments. You may have to even think about future commitments such as private school fees if your kids start school after obtaining the loan.


Different Loan Options

As a borrower, you should be aware of different loan products available in the market and associate features such as loan terms, interest rates, and loan types. The features may contain variable rate loans and fixed-rate loans, whether the loan comes with a Lenders Mortgage Insurance, or a risk fee, whether there are features such as offset facility and redraw facility coupled with the loan, or whether the loan is under a special package and what are the benefits and cost of the package.


The Initial Deposit 

If you are considering pursuing a home loan taking, you would have already saved for the deposit. The higher the deposit is, the better deals you will find. A big initial deposit also means lower monthly instalments. You may need to have a deposit between 5% and 20% of the cost of the property you are going to purchase plus funds for LMI or risk fee if applicable, stamp duty, conveyancer fee, moving cost, and other associated costs.


Job Security

The lenders will assess your capacity to repay your home loan for 30 years. In order to assure the repayment, your income has to be stable. Your income might be from a job or business. If you are planning a career change or starting a new business, the plans may negatively affect your ability to get a home loan. 


A home loan is a financial affair that will last for a long time. It is a good idea to engage an experienced broker such as Sally Pietersz at Rands Financial Services. We have an experienced team that is focused on your needs to help you to evaluate all of your options.


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