Home Loans Northern Beaches - Mortgage Northern Beaches
Home Loan How-To Guide
How do you get a home loan? Northern Beaches Credit Union (NBCU) offers advice on the best way to prepare and what to expect when applying for a home loan.
Home Loan Basics
It’s the great Australian dream - owning your own home. You’re excited and enthusiastic and you just want to get on with finding your ideal property.
Buying a property will probably be the largest financial decision you’ll ever make, so it’s important to do your research and planning.
The first step to getting a home loan is saving enough money for a deposit. Most lenders will require a deposit of at least 10% of the purchase price and some prefer that you have 20% or more.
The more deposit you have, the greater the likelihood that your loan will be approved and the less you need to repay.
You then need to cover some basic criteria required by all lenders. The home loan market is very competitive and there are many different products for you to choose from. Again, it’s important to take control so do your research - choose a lender that gives you a competitive deal and offers you a flexible product that can easily be adjusted to suit your changing needs.
Saving a Deposit
Ask some basic questions of your lender:
- What deposit is required?
- How much can I afford to borrow and what will my repayments be?
- What loan options are available?
- What are the fees and charges?
- Are there any loan conditions to be aware of?
What Lenders Want
The keys to getting approval for a home loan are: Capacity Can you afford to repay the loan? Your repayments will be assessed against your income and your existing commitments will also be considered.
Most lenders will limit your monthly repayments to 25% - 30% of your monthly income before tax.
Collateral
Is the value of the property you are buying adequate security for the money you are borrowing? Do you own more than you owe? Your existing assets (such as savings, investments, car and jewellery) and liabilities (money you already owe to others) will also be taken into account.
Credit
Are you a good financial risk? Lenders will be interested in your history of repaying other loans and debts and will use this to determine whether you are likely to default on this loan.
Other factors such as your occupation and a history of stable employment and residence will be used to build a credit profile.
Types of Home Loans
Basic Variable
A variable interest rate loan with a simple structure. This loan is cheaper than others because it usually doesn’t offer many additional features or much flexibility.
Standard Variable
Standard Variable has a variable interest rate and offers repayment flexibility and additional product features., such as savings offset and redraw facility.
Fixed Rate Interest
Fixed Rate Interest rate and your repayments are fixed over a specified period, usually 1-5 years.
Line of Credit
Your income is paid directly into your loan account and living expenses are withdrawn from the account when needed. Well that’s just the basics , If you’re interested in knowing much more about the process of purchasing a home please >>click here for Northern Beaches & Sydney home loan information!
To find out more call 1300 131964
>>Learn More about NBCU
At Northern Beaches Credit Union (NBCU) our entire method of doing business is geared toward servicing the needs of our members.
>>Business Banking with Northern Beaches Credit Union
The Northern Beaches Credit Union serves the local community in a variety of ways. One of these ways is by introducing our exciting new Mutual Advantage Program (MAP).
