Home loan is to take an amount of loan for buying a property, construction on plot, renovating a home or any other building purpose. Home loan is a strategic process that takes number of stages before lender handover the loan approval.
Types of Loans:
1 First Home Owner
A first home owner is the one who buys a home for first time as an investment or to live in.
- Investor:
An investor is a person who is looking for a property in a high growth property area with good resale value.
- Refinancer:
A refinancer is a person who switches from a home loan to another with same lender or another.
- Rebuilder:
Renovator or a rebuilder is a person planning build or restore the existing house with some additional loan.
General Eligibility:
- The person must be a permanent citizen of Australia and must be above 18 years.
- The borrower must be in the same company for more than 2 years and if moved to new job it must be in line with previous job.
- Credit score is one of the most important eligibility that all the lenders check.
- Savings value of the borrower must be more than 5% of the property value.
- The property value is also calculated when determining the loan amount.
- The lender will finance to only 80% of the property value in some special cases up to 90%.
Interest Rate:
There are three main options you can choose dependingupon your financial criteria’s:
1 Fixed Home Loan
A fixed home loan is certain amount of interest rate that is set for a certain amount of time that is mostly from one year to 15 years.
2 Variable Home Loan
The variable home loan is the loan where the interest rate changes over course of time and it will be determined by the lender only.
3 Split Home Loan
A Split home loan is that you can fix a portion of loan and remaining you can choose either a fixed or variable rate.
Purchasing a first home will be more exciting and daunting all at the same time. Be wise in your choice and build a beautiful home. more information about home loans are available online. Prefer the credible source and get benefited.
