Good advice to start your trip
The future looks bright for potential homeowners, with the Australian housing market showing positive growth trends. However, for first-time buyers, saving for a home loan can be overwhelming and stressful.
The chief executive of the loan company, Simon Kahl, said there were a number of low deposit financing options for homeowners hoping to achieve their dreams, and in fact, most lenders do not. ‘required a minimum deposit of five percent.
“A 20 percent deposit is needed to avoid mortgage lender insurance (LMI) costs that lenders charge to cover against the risk of lending a larger amount,” he said. “First-time home buyers in Western Australia are lucky because they have access to Keystart, a government-backed lender that only requires a 2% deposit.”
Despite a slightly higher interest rate than some lenders and strict criteria, Keystart home loans are a competitive option because they allow first-time buyers to avoid LMI.
Besides IMT, Kahl warned that first-time buyers should be wary of additional fees when looking for a home loan.
“Appraisal Fees, Progress Payment Fees, Application Fees and Mortgage Registration Fees are all addressed as part of the service offering of a professional mortgage broker, who is qualified to provide you with a full breakdown of everything you need including all expected fees and charges. linked to your home loan, ”he said.
To get started with home loan applications, Mr. Kahl recommended organizing key documents to provide proof of identity and income.
“At the bare minimum, most lenders will want to see your most recent bank statements and payslips to confirm your income and identification, including proof of citizenship or an appropriate visa, as required to confirm eligibility. to the First Home Owner grant, ”he said.
“These differ considerably from lender to lender, but, again, your mortgage broker will be able to offer advice specific to the lender you choose,” he said.
If homebuyers don’t have their finances in order, Kahl recommended seeking help from a mortgage broker.
“At the start of the home buying process, the best thing to do is to bring in a mortgage broker,” he said.
“Not only are their services free, but most of all, they’re there to help you navigate the entire financial process – figure out how much you can borrow, find the best interest rate for you, and help you with your loan application.”
Mr. Kahl also recommended closing payday loans as they were only short-term unsecured loans typically used as a quick fix.
“Not only are banks taking a closer look at who depends on payday lenders, whether they are paid or not, but it is recommended that they be closed before any claims are filed,” he said.
For best results, Mr. Kahl has advised you to find a mortgage broker who specializes in your financial needs.
“If you’re building your first home, you want a broker who specializes in building and financing the first-time home buyer,” he said.
CONTACT The Loan Company, 1800880848, www.theloanco.com.au