Below you will find a range of FAQs and useful information on Home Loans.


What is a Home Loan?

A home loan is also called a mortgage and is a way to finance your home. Whether this is your first time buying or if you are a second- or third-time buyer, getting the right financing to pay for the property is essential.

The majority of people in Australia (and the world) require home loans in order to pay for their home. Only extremely wealthy people might consider paying for a house in one go and even then many choose to take a mortgage as it spreads the cost over time.

How Much Can I Borrow?

The amount of money you can borrow sometimes referred to as your borrowing capacity depends on the lender you use. Most home loan lenders will carry out an assessment on you and your finances to decide your suitability for the loan and how much they can lend to you.

How Much is the Deposit?

In order to get going on your house purchase, you will be required to pay a deposit. The amount of a deposit varies according to the property and on the type of home loan you take. However in many cases a deposit will be between 5% and 10% of the full purchase price of the property.

If you are buying to invest, you might be required to pay a larger deposit.

What is Stamp Duty?

When you buy a house, you are required to pay a government tax based on the selling price of the property. This is called stamp duty. The amount of stamp duty you are required to pay depends on which state or territory you live in as they have differing rules. In some states you can get a discount on your stamp duty if you are a first time buyer.

Always calculate stamp duty into your total expenditure when planning on buying a house as it can be a considerable cost to contend with.

What Additional Costs Should I Contend with?

When buying a home or investment property there is much to think about aside from the asking price. There are many financial elements to buying a house, including:

  • Stamp Duty
  • Building assessment
  • Settlement fees on Loan
  • Broker fees
  • Property Insurance
  • Lenders Mortgage Insurance
  • Valuation fees
  • Solicitor fees
  • Removal costs
  • Council rates
  • ...and more

How Can I Apply for a Home Loan?

When applying for a home loan, you will be required to give information about yourself and your finances to prove that you are eligible to take the loan and commit to repaying it. This is similar to taking any type of loan and you will be subject to approval via a credit check.

You will generally need to provide a set of documents, including:

  • Passport / official ID
  • Driver's Licence
  • Tax Reurns
  • Bank Statements
  • Pay Slips

Your broker or lender will usually clarify exactly what they need from you when you make an application.

How Often do Repayments Occur?

As with most loans, repayments take place on a regular basis monthly is the most typical. You can often choose to make payments more often (even once a week or fortnight).


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