It depends. The standard approval process for a home loan varies between lenders. 

The mortgage insurance is applicable only when you borrow 80% and above from the cost of the property.

Such mortgage insurance for a home loan usually takes up to 48 business hours while it goes through the standard credit process. 

Lenders mortgage insurance is also often referred to as the underwriting.

Comparing different bank home loan interest rates can be a tedious process. There are many free resources online to do the comparison but do not really give you the right picture in terms of your requirement/need. 

So based on your financial position, if you are able to repay a home loan faster then a slightly higher interest rate wouldn’t have much impact and could speed up the entire process of getting the home loan. 

But in other cases, if the interest and cost of the home loan are of utmost importance to you, then a home loan for longer tenure around 30 years and above could help you get a better deal. 

Also, after 3 to 5 years looking at refinancing your home loan can be highly sensitive for such scenarios.

The interest on a home loan fluctuates based on a variety of factors. 

You can use various interest rate comparison websites to understand what is the going rate currently and how much it is. But this being said it might not be the best interest rate for you, specific to your requirement. 

So take your requirement to a mortgage broker. Discuss in detail what is the current income and expenditure levels and the property you are looking to buy.

The following list of documents are required to apply for a home loan:

• Personal Identification. It can be your driver’s licence, passport, or the photo ID that satisfies your lender’s requirements (i.e. Proof of Age Card).
• The proof of income. Bank statements for the last year, payslips, or income verification from your employer.
• Financial scenario – assets, liabilities, and expenses. A detailed list of your current expenditures or savings, any outstanding loans or debts, and assets; with supporting documentation (i.e. rates notice for a property, statements on any loans or credit cards, share statements etc).

To get a very good interest rate deal for your home, you need to have the following:

• Good deposit amount already saved for up-front costs and other expenses
• Less number of expenses and outstanding amounts or other kinds of loans
• Strong assets to liabilities ratio which showcases that you can easily pay off your debts if required
• No negative impact on your credit accounts previously or in the recent past

Apart from the above if you have a clear understanding of how much you can repayment and for how long, it makes you a very prospective home loan applicant.

A pre-approved home loan is definitive from the lender that you can borrow a certain amount for a fixed repayment plan and for a set period. 

This is usually provided to you once the bank/lender has all your personal financial details and the key details as to where and for how much you are looking to buy property for. 

This helps you optimise your property search to only those homes which you can buy with your pre-approved home loan comfortable and the processing is smoother after your confirmation of the property to purchase. 

This process of pre-approved home loan is usually done with the help of a mortgage broker, who can help you through all the bank/lender requirements quite skilfully.

Initially, a preliminary assessment is also done by the broker and then is sent for the lender to re-verify from their side as well after lodging an application with them.

That would be tough and is applicable only under exceptional circumstances. 

The chances are rare for you to be eligible to obtain a home loan without any deposit money.

Without a deposit, you would more than likely be relying on some of the federal government grants available. But these grants are usually limited in number and there is always a very high competition or more number of applicants. So it might take longer than usual for your home loan to be processed or released. 

The grants usually act as the deposit in such scenarios. 

The only other way some of the lenders do allow you to borrow without any deposit or on no deposit condition is when you agree to extremely high-interest rates. 

This is also something we would not recommend you to do or take up as part of your home loan. As then the tenure and the repayment amount would be very high than normal.

If there is no credit history available at all, such as no car loan, credit card or mobile phone contract or consumer loans. Then obtaining the home loan would depend completely on the lender and the guidelines they have for such situations. 

The reason is that the lender does not have any information or data to rely upon on how good or bad you at repayment of your loans. And without such information, it is very difficult to understand or quantify how you will be able to pay back the home loan. 

The other reason is that repaying loans historically means you have a good habit of saving and spending for only those amounts which can comfortably repay back. But when such credit history is not there, it is tough to understand if you have the discipline to save and repay your home loan. 

But in some cases, you may be able to get a home loan without a credit history. But such lenders assess your assets and liabilities more strictly and might look towards mortgage insurance as well just to be safe. 

Their asset to liability ratio report will also give them an understanding of how risky it will be to give you a home loan or any kind of loan for that matter. 

So we would recommend that you do buy things on credit and repay them back before looking towards applying for a home loan. It reduces a lot of hassle and helps avoid other safety precautions which a lender might take against you albeit unnecessarily.

The easiest rule of thumb is to not take the maximum amount offered by your lender. Instead, look at what can be comfortably paid off by you in the tenure provided by the bank. 

Also, apart from the deposit, prepare yourself for the upfront and ongoing costs. Only when you have money for all of them should you apply for a home loan. Else there will be many unpleasant shocks and expenses. 

Just to give you a recap on what those upfront and ongoing costs are: stamp duty, moving expenses, legal fees, registration fees and searches, as well as body corporate fees if you are buying into a strata-title, after settlement. 

Other factors you will need to think about are how much your lender is willing to lend you, your personal circumstances and your financial goals over short and long-term periods. It is worth noting that if you decide to borrow more than 80% of the total value of your home loan, you will be subject to paying lenders mortgage insurance.

You should crunch the numbers and work out a budget before the application process, so you’re aware of what you can comfortably afford.

It varies lender to lender. 

But once you have decided which lender to go in with the help of your mortgage broker, you will be getting an estimated time from them. 

The timeframe is usually denoted in the number of business days and is from the date of your application is lodged with them. 

While the pre-approval in itself depends on the lender whether they want to offer it to you or not. But once, agreed the process is pretty straight forward and happens on the confirmed time frames.

When applying for a home loan the lender requires you to disclose your financial commitments to determine your serviceability or borrowing power. If you have reached the HECS/HELP income threshold, then it’s likely you are required to start repaying the debt. At this point, your HECS/HELP debt is a liability that is taken into consideration when applying for a home loan. Some of the factors that can affect your borrowing power include the size of your HECS/HELP loan, your taxable income, the repayment rate of your income threshold, and your lender’s criteria.

Having a car loan or any other kind of loan in itself does not impact your ability to get a home loan. 

What it will do impact is the amount of money you can borrow and the interest rate/tenure as well. 

It all boils to the fact which is your ability to repay all the loans put together.   

When reviewing your application for a home loan, the lender has to consider your financial situation (e.g. your income, ongoing commitments and living expenses). 

They perform this check to ensure you have sufficient income to meet these expenses in addition to the proposed loan, without putting you under any undue financial strain. 

So, if you’re thinking about obtaining finance for a new car, as well as buying a home, you may want to take a look at our https://freshwaterfs.com.au/calculators/ first.

A few banks may give an online application measure that will give you pre-endorsement. 

Be that as it may, most loan specialists actually expect you to give supporting documentation (for example payslips, proclamations and so on) to approve your pay and costs. 

A pre-approval is ordinarily valid through for three to three and a half years and will, for the most part, give you an indication of how much you can afford without being under a financial strain.

Most traditional lenders will not consider you as an eligible borrower if you have the bad credit history.

And in case if you have any outstanding defaults, you will not be considered at all. 

This is bad for the lenders/banks as you do not really have enough financial support to pay your past loans. Then giving you a new home loan would mean you will be financial stress and will not really be able to repay any of your loans properly. 

Your credit history gives a lender an indication of your past ability to repay debts, and a bad credit history increases the risk in the eyes of the lender. 

That being said, it’s not impossible to get a home loan with bad credit. Some lenders might consider customers with bad credit history, however, it may come at an additional cost, either in the form of higher fees, higher interest rates and mortgage insurance.

To find out how strong your financial situation is, you can request a free credit report from any of the following providers*:

• Equifax
• CreditorWatch
• Dun & Bradstreet
• Experian

*These providers may offer free credit reports on a trial basis. Please ensure you check the fine print before entering your details.

Yes, loans are available from lenders to purchase a vacant block of land. 

It depends on whether you are looking to build now or later in the near future. 

Keep in mind that land loans are riskier to banks in the form of security, as during economic downturns property values can drop, meaning if you default on the loan, the property (i.e. land) may be difficult to sell. 

So lenders usually require a higher deposit for a land loan due to their increased level of risk.

Most lenders have set criteria based on which they decide what are the acceptable sources of income.

Especially, when it comes to repaying a loan. 

So, if the benefit you are receiving is ‘acceptable’, some lenders can assist you in and even sanction your home loan. 

But we would highly recommend you to ask yourself the following questions

Is there any other household income that can help you out if the need arises?

Is the benefit sufficient to repay the proposed loan?

Have you enough deposit money for the home and other upfront + ongoing expenses?

Would you have enough left over after meeting all these expenses for your living expenses and current commitments?

There are certain options available for retirees. 

These options help them to get a home loan. 

Most of them depend on your personal and financial position, including your assets and income streams. 

But we have seen retirees finding it difficult to get a home loan as lenders will generally deem retirees as a heightened borrowing risk. 

Their life expectancy is also another problem as they cannot pay back a loan with a term of 25-30 years and do not really have a regular income.

To find out how much you can borrow for a home loan, head to our Borrowing Power Calculator. From here, you’ll be able to get an indication of not only how much you can potentially borrow, but also how much your weekly, fortnightly, and monthly repayments will be.

The minimum is five per cent of the property’s value.

This is for your deposit, although this will vary from lender to lender. 

It’s important to factor in the minimum deposit amount, plus costs (i.e. lenders fees, legal, registration and search, stamp duty, building, and pest inspections). 

That being said, if you borrow more than 80% of the value of the property, you will need to factor in lenders mortgage insurance which will be added to your loan amount. 

While it can be frustrating to take the extra time to build up a larger deposit, the less you borrow, the lower your repayments will be.