1. What is the lowest interest rate and max loan amount that I can get?
The interest rate you are eligible for and the maximum amount you can borrow are influenced by similar factors. The official cash rate set by the RBA and each lender’s own rates and policies affect interest rates. The stronger your home loan application, the better the rates lenders will offer. The strength of your loan application depends on factors such as the amount of deposit you can pay, your Loan-to-Value Ratio (LVR), credit rating, and other factors. The amount you can borrow is also affected by the RBA’s decisions. Lenders will assess your serviceability, which is your ability to repay the loan. Higher interest rates lead to higher repayments, resulting in a lower borrowing capacity when rates rise. To determine your serviceability, lenders consider your credit history, income, expenses, and other financial commitments. You can use our borrowing capacity calculator to determine how much you can borrow.
2. Am I eligible for government grants?
In Australia, there are several government grants that can help first-home buyers. These include the Help to Buy Scheme, the First Home Guarantee (previously known as the First Home Loan Deposit Scheme), the Family Home Guarantee, the Regional First Home Buyer Support Scheme, and the First Home Super Saver Scheme. Whether or not you qualify for these grants will depend on various factors, such as your income, the property’s value, its location, and whether or not you are a first-home buyer. These national government schemes will be available until 2023.
3. How can I consolidate my debts to save my time in managing them?
Suppose you are considering consolidating your personal or car loan into your home loan. In that case, it is essential to remember that while it may make your repayments more manageable and lower your interest rate, it could ultimately result in you paying more interest over time. Additionally, there may be cashback opportunities depending on the type of debt.
4. Should I go for fixed or variable?
The choice between a fixed or variable interest rate depends on your financial objectives and the current trend of interest rates. Opting for a fixed interest rate ensures predictability in loan repayments, whereas a variable interest rate can be advantageous if interest rates decrease. Moreover, variable-rate mortgages typically permit limitless additional repayments, while fixed rates usually allow for up to $5K-$10K annually.
5. Which property type that I can buy with a Temporary Visa?
Additional charges like foreign buyer surcharges and stamp duty may be required from temporary visa holders when purchasing a property. Certain lenders may also have specific visa requirements and minimum visa validity periods for loan applications, and FIRB approval may be necessary. For those without sufficient funds for a deposit, a mortgage broker can assist with a “prepare to buy” plan.
Don’t hesitate to contact us if you need help. We are here to assist you every step of the way.