The amount you can borrow depends on the individual factors such as your income, savings, as well as current debts and expenses. From there we look at how much you can realistically afford each fortnight or month without having too much of an impact on your current lifestyle.
We will then explore the types of loans available and, based on the information you have given us, which loan is the most appropriate for you.
This is where you have one or more transaction accounts linked to your home loan. You can make deposits or withdraw from it as you would with a regular transaction account. When you keep money in an offset account over a period of time, you can reduce the amount of interest charged on your home loan. The higher the balance and the longer the period, the less interest you’ll pay. This means it is possible to pay off your loan sooner.
For example, if you have a loan for $500,000 and you have $500,000 in an offset account, the interest charged will be $0.
Some clients prefer to contribute more than the required fortnightly or monthly repayments to pay their property off more quickly. Then, possibly due to an unexpected expense, they may be able to take this money out again. This is called redrawing. Some banks may charge extra fees in order to do this.
LMI is an insurance that you pay when you are borrowing above a certain percentage of the property value. Usually above 80%. This amount can be a few thousand dollars to tens of thousands.
As much as we discourage paying for an insurance that may not protect you, there are many benefits to using it, which we will be happy to tell you about.
A fixed rate home loan means your loan repayments will be charged at the same interest rate for however long the fixed rate period is- usually a period of between 1-5 years. After this period, the rate will revert to a variable rate, unless you decide to sign another fixed-term
contract.
The benefit of a fixed rate home loan is that the agreed percentage interest rate won’t change for the term of the contract despite any changes in the interest rates for variable home loans.
Buying a home is probably the largest and most important
investment you will ever make. At Vantage Finance we offer the guidance and
support you need in order to make the best decisions for you and your family.
Thorough planning along with income strategies, debt management plans, and
advice suited to your personal circumstances, can help to make your dream home
a reality.
