Securing a home loan involves several steps, which are outlined below:
1. Determine your borrowing capacity: The first step is to assess your borrowing capacity based on your income, expenses, and other financial obligations. To estimate your borrowing capability, you can use online calculators or talk with a mortgage broker.
2. Choose a home loan type: There are different types of home loans, such as variable rate, fixed rate, split rate, interest-only, and line of credit. Consider your needs and preferences to choose a loan that suits you.
3. Compare loan options: Explore and evaluate multiple loan options provided by various lenders. To find the best loan for you, consider the interest rates, fees, repayment periods, and other loan features.
4. Pre-approval: After deciding on a loan, you can file for pre-approval, which is a conditional approval for a specific loan amount. This gives you an idea of how much you can afford to spend on a home and enables you to confidently make an offer.
5. Find a property: Start searching for a property that fits your requirements and budget. When you find a property that appeals to you, you can make an offer, and if it is accepted, you can proceed to the next step.
6. Formal approval: After you have found a property and made an offer, you can apply for formal approval of the home loan. This involves providing the lender with additional documentation such as payslips, bank statements, and identification.
7. Settlement: Once your loan is approved, you will need to sign the loan agreement and any other relevant documents. Your lender will then transfer the funds to the seller, and you will become the legal owner of the property.
Overall, securing a home loan can be a complicated process, and it is critical to seek professional advice from a mortgage broker or financial advisor to ensure you make the best choice for your specific situation.
FAQs
Got questions? Find answers to some of the most commonly asked questions about our financial solutions, processes, and services to help you make informed decisions.
LMI is a third-party insurance premium payable by you as the borrower, to protect the lender against the potential loss of money if the borrower is unable to repay the home loan. Generally, an application with a Loan-to-Value Ratio (LVR) of 80% or more may result in the borrower having to pay Lender’s Mortgage Insurance.
Extra payment is an excellent feature of a good mortgage deal. Here, your lender lets you make lump-sum additional payments along with your regular monthly payment. Making extra payments allows you to shorten the length of time you are paying your mortgage. Since your balance is being paid off faster, you will also have fewer total payments to make, thus lowering your interest. At Reliiance Financial Solutions, we can help you find the most suitable mortgage deal for you. We have a range of lenders that allow you to make as many extra repayments as you want, whenever you want, without attracting any penalties.
Stamp Duty is a government tax imposed on contracts, with the amount usually calculated as a percentage of the contract value. In layman’s terms, it is the tax charged for your legal documents to be ‘stamped’.
If you are planning to buy a property, it’s crucial to factor your State’s Stamp Duty into your budget.Chances are, based on your circumstances and state of domicile, you might be able to obtain a stamp duty exemption, or concessions (discount) against the purchase of your first home. Stamp duty laws get changed often, so be sure to check your State Government’s website for the most up-to-date information.
Did you know that some lenders would allow you to cash out any extra repayment you made whenever you need the money? You read that right. This useful mortgage feature is called “redraw facility”. You can withdraw any extra repayments or lump sum payments you make over the life of the loan. At Reliiance Financial Solutions, we will explain all mortgage products to you, including those which allow you to the redraw option.
Testimonials
Discover how we’ve helped our clients navigate their financial journeys with personalized solutions. Read their stories of success and empowerment below.
A 5-STAR RATED FINANCIAL SOLUTIONS PROVIDER BY OUR CLIENTS
At Reliiance Financial Solutions, we have been privileged to have worked with hundreds of remarkable individuals and families.
Very few things come close to receiving their genuine appreciation of our services. All we can say in return is – the pleasure was all ours.
It is also our pleasure to share some client testimonials with you. Please click on Video Testimonials to view them all. Use the buttons at the bottom of the screen to navigate through the videos.
