homeloans

Home Loans

Most people need to borrow to buy or build a home. Therefore, it is a good idea to spend time in getting to know the various types of home loans.The first things that most people do when considering a home loan is work out their maximum purchase price. Most banks generally lend up to 80% of the purchase price of the property, other banks may lend up to 95 to 100%, provided that the borrower meets certain strict conditions.Generally, you will need 5 to 20% of the property's purchase price as a deposit.

The bank lends a percentage of the valuation of a property, not a percentage of the purchase price.If you are borrowing over 80% you will need to take out Lenders Mortgage Insurance. The Lenders Mortgage Insurance is a once only payment. Lenders Mortgage Insurance insures the bank against non- payment or default on your residential property loan it protects the bank and not the borrower. If the borrower defaults on the repayments and the property is sold for less then the outstanding loan amount, the insurer will pay the monies owed to the lender.

What are the benefits?

You benefit from having Lender's Mortgage Insurance because you can buy a property with a smaller deposit.

What do you do first.

Look for the right loan.

The first step is to get a Pre-approval from the bank

Assess income & outgoings
Establish how much you can borrow
Discuss options such as deposit saved.
Discuss type of loan to suit your individual needs
Complete an application
Provide all documentations as requested

The next step is to find the property

Your offer is accepted on a property
Contact your bank / broker
Contact One Title Conveyancing to review the contract
Provide the front page of the contract of sale to your bank / broker

The next step is getting your unconditional approval

All checks, valuations have been completed by your bank
Your loan is formally approved
Approval sent to One Title Conveyancing
You are now ready to exchange contracts