Residential Loans

Buying a home can be a thrilling experience, but navigating the home loan market can be overwhelming. With so many options available, it's essential to understand the basics and find the right mortgage for your needs.

Types of Home Loans

- Owner-Occupier Loans: For individuals and families buying a home to live in. 

- Investment Loans: For investors purchasing a property to rent out. 

- First Home Buyer Loans: Specialised loans for first-time buyers, including various government incentives as well as some bank assistance to get into the market for the first time. Click here to access our First Home Buyer Hub for more information. 

- Construction Loans: For building or renovating a home

- Refinance Loans: For those who already have a home loan, and are looking for a better deal, or to borrow more money for various personal and investment purposes. 

Types of Rates

- Variable Rate: Interest rate may fluctuate over time, typically according to the movements of the cash rate determined by the RBA. Most lenders will also allow an offset account to be linked to a variable rate loan. 

- Fixed Rate: Lock in a fixed interest rate for a set period (e.g., 1-5 years), with no risk of the rate moving irrespective of market movements. Note, generally there will be penalty costs to make additional repayments or repay a fixed loan within the fixed term. 

**You can also opt to have a combination of fixed & variable rates, if you'd like the best of both worlds.

Types of Packages

- Basic: A low fee loan, without the bells & whistles such as an offset account or linked credit card. Ideal for borrowers who like a simple banking set up, and don't have the ability to save a significant amount over and above their loan repayment. 

- Packaged: Typically has an ongoing fee (although not always), and will come with an offset account as well as discounts on other banking products such as credit cards and insurances. Ideal for borrowers with multiple properties, multiple bank accounts and a significant amount of savings or ability to save.  

Key Considerations

- Interest Rate: The percentage of your loan amount charged as interest

- Loan Term: The length of time you have to repay the loan (typically 30 years)

- Deposit: The upfront payment required to purchase a property - minimum is 5% however most lenders like to see at least 20% plus an allowance for purchase costs, such as stamp duty. 

- Lenders Mortgage Insurance (LMI): Additional insurance required in most cases for borrowers with a deposit less than 20%. Please note, there are scenarios where this can be waived depending on your situation. 

- Fees and Charges: Understand all associated costs, including establishment fees and monthly service fees

Government Schemes and Incentives

- First Home Owner Grant (FHOG): A one-time grant for first-time buyers

- First Home Loan Deposit Scheme: A government-backed scheme for first-time buyers with smaller deposits

- Stamp Duty Concessions: Discounts on stamp duty for first-time buyers and concessions for certain buyers

- First Home Super Saver Scheme: Utilise the lower tax rate in your superannuation to help you save for your first home deposit. 

Click here to access our First Home Buyers Hub for more information. 

Tips for Finding the Right Home Loan

- Work with a Finance Broker: Expert guidance for complex situations, as well as taking the hassle out of shopping around and finding the best rate & package. 

- Read the fine print: Understand all terms and conditions before signing

- Plan for the future: Consider how your financial situation may change over time

Finding the right home loan takes time and research. By understanding your options and considering your individual circumstances, you'll be well on your way to securing the perfect mortgage to suit your goals and objectives.