FAQ

You could lend up to 95% of the property value subject to eligibility. (Lenders Mortgage Insurance (LMI) may be required.) If you use a Family guarantee you could borrow 100%, even more. Speak with us to learn more about a family guarantee.

How much you can afford to borrow will depend on a range of different things such as your income, your credit history, your savings or deposit, and the value of the home you’re interested in buying. Our How much can I borrow calculator can give you a good indication of your borrowing power and help you work out what your repayments would be.

You can always contact our home loan specialists because we can explain all your options and see what works best for you. You can request an appointment now or call 1300 320 132.

You typically need a deposit of at least 5% of the property’s value – plus enough to cover stamp duty and other admin fees. If your deposit is less than 20% of the property value you may also need to pay for Lenders Mortgage Insurance (LMI).

It may be possible to lend 100% using a Family Guarantee.

What documentation do I need to apply for a home loan?

To help make the application process as quick and easy as possible, complete this checklist to find out what documents you will need to have ready to apply for a home loan.

Best Value Home loans documentation checklist

You can request an appointment now or call 1300 320 132.

We can help you with all aspects of the home loan process including how much you can afford to borrow, how to take advantage of the First Home Owners Grant (FHOG) of $12,500 in ACT or $15,000 in NSW, what type of home loan is right for you and what fees are involved.

Full details are here: First homebuyers

You can request an appointment now or call 1300 320 132.

•  Request an appointment by clicking here.
• Phone – Call 1300 320 132 to make an appointment to meet with our home loan specialists who are happy to come to you.

When you borrow more than 80% of the property value, the lender will obtain lenders mortgage insurance (LMI) to protect the lender from losses. Mortgage insurance covers the lender not the borrower.

It is a one-off payment which can be included in your home loan

Stamp duty is payable on property purchases.

Stamp Duty varies by state. The information on Stamp Duty or eligibility for an exception by state is available on the following websites:

•    ACT- http://www.revenue.act.gov.au/
•    NSW – http://www.osr.nsw.gov.au/
•    VIC – http://www.sro.vic.gov.au/
•    QLD https://www.osr.qld.gov.au/
•    SA – http://www.revenuesa.sa.gov.au/
•    WA – http://www.finance.wa.gov.au/
•    TAS – http://www.sro.tas.gov.au/
•    NT – http://www.treasury.nt.gov.au/

You may be able to borrow 100% of the property value plus the costs involved in the purchase providing you have a second property to use as security.

A Family guarantee loan may also allow you to borrow 100%.

Your mortgage specialist can discuss these options with you.

Most lenders will work within these timeframes:

•    A pre approval within two to three business days which will allow you to shop around for a property.
•    A conditional Approval within two to three business days.
•    A formal (unconditional) approval within two to seven business days depending on the valuation of the property.

Because we deal with over 30 lenders timeframes will vary and approval on occasion may take longer. We will advise you if the lender we use may take longer.

Most pre approvals are valid for 3 months. After 3 months the lender may wish to update your pay and employment details.

Yes, before you bid at auction you should get approval in principle for your home loan application. At auction you must exchange unconditionally when you sign the contract. You must have the approval so you can confidently bid knowing how much you can afford. Get a pre approval today by calling us on 1300 320 132

Yes, a family guarantee, family pledge or a limited guarantor loan, allows a family member to guarantee a portion of your home loan. Guarantors can be parents or step parents (grandparents and siblings will also be considered).

Family guarantee is a loan structure but not a type of home loan. You can usually take up any regular home loans.

The equity in a family members existing property can help you buy a home or invest in residential property sooner. They don’t need to provide you with any cash. As a limited liability guarantor, your family member offers their property as security for part of your home loan, usually around 20%.

•    You may be able to buy your home sooner
•    You avoid paying Lenders Mortgage Insurance (LMI) saving thousands.
•    Guarantors can determine what portion of the loan they will secure

It is difficult for anyone to know which are really the best value loans and know which lenders will do your loan. At Best Value home loans finding you the best value home loans is what we do. Because we are experts in matching you with the right loan and options.

It varies depending on the type of loan that you take out and who the lender is.

Typically:

•    An establishment fee
•    An Annual Package Fee which is paid when the loan is established and at each anniversary.
•    Lenders mortgage Insurance if you borrow over 80% of a property value.
•    A Settlement fee
•    Government Charges which vary from State to State

There are a number of ways that you can make your loan repayments:

•    Direct Debit facility
•    Direct Salary Crediting
•    Internet Transfer

Variable rate home loans have an interest rate that can move up and down according to fluctuations in the housing market.  They offer flexibility to make unlimited additional repayments without penalty and access to redraw should you require advance funds back.

Fixed rate home loans have interest rates and loan repayments that remain the same for an agreed period from 1 to 10 years and then at the end of the term, revert to a variable rate. They give you certainty of knowing what the repayments will be. There can be restrictions on making extra repayments during the fixed period and breaking a fixed term contract can cost you thousands of dollars.

The government introduced “Comparison rates” to make it easier for consumers to work out the “true” cost of a loan.

A comparison rate is made up of the following:

1)    the amount of the loan;
2)    the term of the loan;
3)    the repayment frequency;
4)    the interest rate; and
Some fees and charges connected with the loan.

What is NOT included?
1)    Government charges such as stamp duty or mortgage registration fees
2)    Fees and charges associated with loan options or events that may or may not be used by the borrower, such as early repayment or redraw fees.
3)    Fees and charges which aren’t available at the time the comparison rate was provided. This includes “break costs” for fixed rate loans.
4)    Costs such as redraw fees or early repayment fees, and savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.

The home loan comparison rate is based on a $150,000 loan paid off over 25 years to demonstrate how much you would be paying overall, including interest, fees and charges.

The problem with this is that the life of a mortgage is now 3.8 years. It is within that time that people buy or sell, change the loan product or refinance to another lender for a better deal. This is where banks often load their fees in the first 5 years so they are not even in the comparison rate calculation!

So what initially looked to be the “cheaper” home loan could now be more expensive.

Rate comparison sites and most mortgage brokers often unknowingly guide you using the comparison rate. This is often not the best value deal.
The other overlooked cost is Lenders mortgage insurance (LMI). It is smart to compare these costs as they can vary thousands of dollars between lenders.

A Best Value Home Loans specialist can help you work out the best value loans because we understand best value.

A principal and interest home loan is where the principal repayment and the interest are repaid together throughout the term of the loan. That ensures that the loan is paid off over the term. An interest only loan allows you to pay only the interest on the loan for a certain period of time.  If you live in your home, you can have an interest only period of up to 10 years. Property investors who have an Investment home loan, pay interest only to obtain maximum tax deductibility.

If you wish to buy your next home before the existing home is sold, or are waiting for completion of the sale of an existing property prior to buying a new one, a bridging loan may allow you to complete the transaction now.

Bridging finance allows you to obtain finance to ‘bridge’ the gap between paying for a new property and receiving the proceeds from the sale of your existing one. The lender will take security over both properties until the sale of the existing one is complete. The bridging amount or ‘peak debt’ will not be allowed to be above 80% of the value of both properties.

Some lenders will allow you to capitalise the interest payments (add them onto the loan) for a period of time or until the 80% limit is reached, to help with cash flow. The bridging loan may be slightly more expensive, however the borrowers nominate which product their loan defaults to after the bridging period is over. When you sell your existing property you just pay the proceeds from the sale off the balance on the bridging loan, and revert to your nominated loan product.

LVR stands for Loan to valuation Ratio.  This is the measure of the amount of the loan compared to the value of the property. For example, if you have borrowed $300,000 and your property is valued at $600,000, the LVR would be 50%

No problem. If you have tax returns, we understand financials and would work out what you could borrow.

If you can’t provide tax returns and financial statements to verify your income, you simply sign an income declaration stating how much you earn.  Some lenders require an accountant sign off. You could borrow up to 80% of the property’s value. Lo doc loans are available for borrowers with a good credit history and current ABN.

Options are available for borrowers who wish to borrow more than 80%, or who may be credit impaired or do not fit within traditional lending requirements.

Simply contact the team at Best Value Home Loans because we find the best value home loans.  We make the process easy. With access to more than 30 lenders and our expertise we will find the right deal for you because we have been efficiently doing refinances since 1994.

You can request an appointment now or call 1300 320 132.