One problem Australian home buyers don’t face is a lack of home loan choices, in fact there is an overwhelming amount of competitive home loans in the Australian market today.
Australian home loans are offered by a great range of lenders, including banks, credit unions, building societies and mortgage originators.
What should I consider before applying for a home loan?
- Fixed or variable rate: If interest rates are likely to rise, locking them in will mean that you avoid higher repayments in the near future. Most lenders will also allow you to fix a part of your loan, leaving the rest at a variable rate.
- Deposit amount: At the time of writing many home loans require deposits of at least 10% of the property value, so you need to budget for how much you’d like to borrow and save. Note, some lenders will accept a 5% deposit but unless your deposit is over 20% you will have to take out lenders mortgage insurance, which can be quite costly.
- Features: Some borrowers prefer to pay the principal off at their own pace, opting for loans with a Line of Credit facility, while others need special products such as low doc loans because they lack the amount of documentation for a standard mortgage.
Sometimes when there are too many choices it can become hard to determine the right one. Let RateCity take some of the research strain and visit our mortgage comparison tool to compare an extensive range of Australian home loan products.
Feel free to read up on the details at the lender’s website by clicking “Go to Site” or use our mortgage repayment calculator.