Stop paying more for your mortgage

How much money you can borrow for a home loan depends on a few different factors. The first major factor is your employment status and income, basically the more you earn (and your partner if it’s a joint loan) the more you can borrow.

Another factor is the amount of money you have saved for a deposit already, most banks and lenders recommend 20% of the property’s value as a deposit. Other factors include your living costs, how much you can afford to pay back each week and how many other monthly and weekly repayments you have. One final factor to consider is if you are going to eventually rent the property out and how much rental income you would make. All of these factors can give you a reasonable idea of how much you can borrow and we can compare these loans for you from leading providers.

Most banks and lenders recommend 20% of the value of the house as your deposit, some will let you borrow more depending on your financial circumstances, if it is your first property you may be able to get the First Home Buyers Grant, which can be valued at up to $20,000. If you have a deposit that is less than 20% you are required to pay a Lenders Mortgage Insurance, the larger your deposit the more choice you have of the bank or lender.

We can compare banks and lenders to find an option that is right for you, however to find out more details about the deposit itself or any concessions or grants, it is best to talk to the provider.

To get started you need to fill in the online form and one of our staff members will call you to discuss your budget and home loan options. We compare rates with leading banks and lenders to find the best option for you.

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When you start to work out your budget for buying a home there are a few other expenses you need to think about. These include:

1. Stamp duty

2. Legal fees

3. Building inspections

4. Strata fees

5. Council fees

Since a typical home loan lasts around 30 years, it is wise to factor in changes to your personal circumstances.

Your credit record has all your information regarding your finances and any loans, credit cards or finances you’ve applied for. It details your information and gives you a ‘credit rating’, if your score is good you’re a low risk and indicates that you’ve always paid back loans or finance on time. If you have a bad rating it is harder to get a home loan as it is assumed you won’t make your repayments on time.

Anything on your credit record remains for at least five years, that’s why it’s important to pay back any loans you have so you have a good credit rating, especially if you want to buy a house. Having a good credit record can help you get low-interest rates on your home loan as well. If you are looking into buying a home you have to give permission to your credit provider to access it.

A mortgage term is typically 30 years of making regular monthly repayments, however you can always make additional repayments to shorten the repayment period. You can also choose to make repayments weekly to reduce the amount of interest you're charged - it’s best to check these details with your lender.