If you are considering buying a home – now is the perfect time. Home loan rates are lower than they have been in five years.
Brokers.com.au wrote a recent article where it was stated that the growth in new mortgages was the strongest it has been; “Following the increase of 1.9% in June, new lending commitments to households rose 3.9% in July, according to the Australian Bureau of Statistics (ABS). The value of lending for owner occupier dwellings rose 5.3% nationally in July, with rises in all states and territories apart from Tasmania. Lending for investment dwellings rose 4.7% in July with rises across all states and territories. The data also showed that fist home buyers made up almost 30% of the owner-occupier commitments. The number of loans to first home buyers was up by 1.3% for the month and 4.0% for the three months to July.” (brokernews.com.au)
While demand for home loans is rising, online lenders are driving down interest rates.
“Despite a hold from the RBA last week, a growing number of online lenders have cut their interest rate to under 3%, in a move that is putting pressure on larger traditional banks to do the same. No wonder more and more borrowers are heading online, rather than traveling to a branch office in business hours to apply for a home loan.” (brokernews.com.au)
“Competition in the mortgage market is heating up and borrowers can get amazingly low rates by researching the good deals.” (brokernews.com.au)
Brokernews.com.au stated in their article that banks are joining the ranks of lenders with rates below 3.0%.
“Upon the commencement of spring, Australia’s largest customer-owned bank has announced cuts to the interest rates on a range of both its owner-occupied and investors home loans.” (brokernews.com.au)
Realestate.com.au listed 8 things you need to get a home loan:
A lender will want to know that you have the capacity to repay any loan they give you.
- Evidence of what you own
A lender will always want to see evidence of the assets you hold such as your superannuation balance, bank account details and a list of any shares, property or other assets you own.
- A sound credit history
All lenders will always look at your credit history before they provide you with finance.
- Your expenses outside of the home loan
A lender will also take into account your living costs such as providing details of what you spend on groceries eating out and other day-to-day expenses, as well as ongoing costs such as utilities, childcare or education, insurance premiums and more.
- Details of any gifts, grants or exemptions
If a family member or friend is helping you buy the home, be prepared to provide the lender with evidence of this such as money in your bank account or handing over a signed letter showing evidence of the loan or gift.
- Details of the property you’re purchasing
Before you’re given your home loan, your lender will usually ask for a copy of the front page of the signed contract for sale.
A lender will always need formal identification, such as a passport, driver’s license or other photo ID.
- Be more certain of what you can borrow with a home loan calculator
Before you apply for a loan, it’s always best to have some degree of certainty about how much you can borrow. The easiest way to do this is by using a home loan calculator.
Let us help you!
To learn more about buying your first home –download our e-book and let us help you through the process we will also do the paperwork on your behalf.
If you have any questions, we can come to see you in your own house to help guide you through your financial journey. At Options we have in-house financial planners, credit advisers, properties specialist and legal team to assist you by making your property investment experience an easy and rewarding process.
How it works?
At Option Home Loans, we will meet you at a time and place that suits you. As soon as you contact us or book an appointment, one of our lending specialists will be into touch.
Make your life changing decision and contact us today!
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