All about Home Loans Perth.
Western Australia is a great place to set up your home. Perth has experienced growth and prosperity in recent years, and many people are eager to purchase property here.
If you feel daunted by the idea of buying a property, then you are not alone. Your home is probably the single biggest purchase you will ever make in your life so it is understandable if you feel confused and nervous. Applying for a Perth Home Loan? Read our introduction as a guide.
Find the home loan you want:
There are many different options in the market for potential home buyers. The most common way to purchase a home is with a mortgage, which is basically a home loan. It is a loan secured over the property. You can approach a number of different lenders: a bank, a credit union or other financial institution.
The loan is usually paid off slowly, over a number of years, through either monthly or fortnightly repayments. The term of the loan refers to how long you need to pay off the loan. Typically a term of 20, 25 or 30 years is suitable.
The total price of the home loan, or mortgage, is the principle loan plus interest. The principal is the amount you borrow (usually the house price as it was on purchase, minus any deposit put down). Then interest is calculated on top of the loan amount.
As you reduce the amount owed to the lender through regular repayments, the interest amount is reduced also, until eventually the loan is paid off.
Home loans are the core business of many banks and financial institutions. They make their money from the interest you pay for the loan, along with the various fees and charges.
Fees and charges
Typically, when taking out a home loan, the lender will charge entry fees, administration fees and lenders mortgage insurance.
Settlement costs will also be payable. Then there is the valuation fee which the bank may charge to pay for a surveyor to visit the property and to ensure it is worth enough to cover the mortgage amount. You could also ask the surveyor to carry out a building survey at the same time. Note that there will usually be exit fees also if you were to switch lenders in the future.
How repayments and interest rates are calculated.
Fixed rate loans allow you to lock in a rate for a period of time agreed by both yourself and the lender. Usually this takes the form of a three year or five year term. This protects you from any interest rate rises during that period, but it also leaves you unable to take advantage of any interest rate cuts in that time.
A variable rate loan means that the interest on your loan would rise with an interest rate increase, but fall with any cuts in interest rates. Consider whether you are looking for security or flexibility.
Choosing a lender
This is where your Mortgage Broker Perth can help. Our job is to speak to the lenders every single day, so you might say our knowledge is based on years of experience and always up to date. After all, we do this for a living. Save yourself time and money by talking to us today.
|
|
Our Home Loans
|
|
Simple, hassle-free home loans with the lowest interest rates available. |
|
Reduce monthly commitments and get on top of your finances with debt consolidation strategies. |
|
Don't get stuck paying too much. Help on how to refinance your home loan.
|
|
Full featured home loans now available as low documentation loans.
|
|
Take some money out of your mortgage for renovations, starting a business, buying a car or that dream holiday.
|
|
Exactly why you should talk to a Perth mortgage broker before visiting your bank.
|
|