Here are seven questions to ask your mortgage lender in Australia.1.
The borrow is granted a maximum amount they are allowed to borrow under the home equity line of credit and may borrow up to this limit at any time during the draw period.
How much can I borrow?Depending on your income and what you are buying, you can use a Borrowing Power Calculator to receive an indicative borrowing amount. You simply input your income and monthly commitments and the calculator will give you an indicative borrowing amount.2.
As well as the money that goes to the actual purchase of a property, there are additional costs involved when buying a house.
The additional funds raised by over borrowing are used to cover legal costs, stamp duty and so on.
Although homeowners place a lot of emphasis on obtaining the lowest interest rate on their home equity loan, getting the lowest rate may not necessarily be the most important factor.
” The answer is “It depends”.It really depends on the particular housing loan package that you have taken up. Home loans with slightly higher interest rates generally offer more flexibility and features that may be worth paying for, for example, free redraw.4.
Can I ensure my home loan repayments do not change?Yes, if you want to ensure your home loan repayments do not change you can take out a Fixed Rate home loan option for a term of 2, 3 or 5 years.
Interest rate will not change for 20 years.15 Year Fixed Mortgage Rates15 year fixed loan has a loan term of 15 years and will not change during this period. This will ensure that for the period you choose your loan repayments will not change when the variable rate changes.5.
Can I make extra repayments and access these funds if I need to?Yes, in most cases you can but this depends on the product.
As we said at the beginning, it depends on whether the product is right for you and whether it fits your individual circumstances. Check the individual mortgage product features for full details.6.
These caps protect you by minimizing risk from rising interest rates.The periodic interest rate cap limits the amount your interest rate can change when the mortgage lender adjusts your interest rate.
What happens if my interest rate goes up or down?If you have a variable rate home loan and your rate goes up or down, we will recalculate your minimum loan repayment based on the new rate. I advise staying away from them.The secret to biweekly paymentsIn fact, I advise staying away from biweekly mortgage payment plans altogether. If you have a fixed rate home loan, your rate and repayments will not change during the period of the fixed rate agreement.7.
Financial decisions can be difficult, and extra money can often be as stressful as it is a relief.With extra money comes the responsibility to use your finances wisely.
A homeowner loan can be a good way of funding private education, a university course, a wedding, a new car, a holiday home, home improvements to your existing home or a new business.
These lenders include Aussie Home Loans, RAMS, and GE Money.