Ebook Financing your Home Purchase
A housing loan is a long-term commitment and the home it provides will be important to your health and wellbeing. You should not jeopardise this by over-committing yourself with other credit. Other credit reduces the amount you can borrow and whether you are able to make your home loan repayments. The most common reason borrowers get into difficulties repaying their mortgage is over commitment to other credit.
The larger your deposit, the easier it will be to buy a home. You will not need to borrow as much. Generally, you will need between 5% and 20% of the purchase price of the property as a deposit. However, some lenders will lend 100% of the value of the property provided the borrower meets certain strict conditions.
Interest is charged to the borrower by the lender for the use of the lender’s Money. The interest rate is the annual percentage of a loan amount that is charged as interest. The interest rate can and will fluctuate with changes in economic conditions.
Contents
How Much Can You Afford?
Other loan commitments
Deposit
Interest charges
Types of Lenders
Banks
Building societies
Credit unions
Mortgage managers
Cooperative housing societies
Superannuation funds
Solicitors
Finance companies
Vendor finance
Types of Loans
Standard variable interest rate loan
Basic variable interest rate loan
Fixed interest rate loan
Part variable/part fixed interest rate loan
Capped or introductory interest rate loan
All-in-one loan
Home equity loan
Consolidated loan
Interest only loan
Bridging loan
Other Loan Features
Going for a Home Loan Interview
Questions to ask lenders
Useful Telephone Numbers
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