How to Get to Home Loans Sydney
Brighter Finance makes riding to Home Loans Sydney easy. A smart mortgage consultant, Marcus Roberts, is dedicated to listening to his clients and staying true to their best interests. He will take the time to understand their personal financial goals and recommend mortgage solutions that will help them achieve their goals.
Line of Credit Loans
A line of credit is a loan that allows borrowers to access the equity in their home. Unlike a traditional home loan, the line of credit will allow you to withdraw money up to a certain amount without seeking approval from a lender. These loans typically have very high credit limits, meaning you can make larger purchases. As a bonus, they are also very affordable - interest rates are often below those of credit cards.
While not every lender offers line of credit home loans, most major banks and larger institutions do. These lenders include Suncorp, St. George, AMP, BOQ, and Bendigo & Adelaide Bank. These lenders also work with qualified mortgage brokers. When considering a line of credit loan, always consult a financial adviser before applying. Some lenders will ask for evidence demonstrating how you intend to use the funds. Ultimately, the lender will evaluate your credit history, serviceability of your property, and borrowing power before giving you a home loan.
Variable Rate Home Loans
Brighter Finance Mortgage Broker Sydney comes with a variable interest rate. That means that your repayments will fluctuate, usually based on changes in the official cash rate set by the Reserve Bank of Australia. If your interest rate drops in one month, your repayments will probably drop in the next. Because interest rates fluctuate based on many factors, it is essential to understand the differences between fixed and variable rates before choosing a loan.
While variable rates vary from one lender to another, they are consistently lower than fixed rates. In November 2018, the lowest variable owner-occupier loan was 3.54%, compared to 3.74% for the lowest fixed-rate loan. In Australia, variable-rate home loans tend to be more flexible than fixed-rate home loans, and many lenders allow borrowers to split their loan into two sections. In Sydney, this gives borrowers the flexibility to choose the repayment structure that best suits their needs and budget.
Owner-Occupied Home Loans
Owner-occupied home loans in Sydney are available to people who intend to live in their new property. This type of loan is different from an investment loan, which is meant to be used to purchase a property with the intention of renting it out. An owner-occupied home loan can be used to build a new property, renovate an existing property, or purchase an existing house. Listed below are some of the benefits of owner-occupied home loans in Sydney.
The most obvious benefit of an owner-occupied home loan is that the borrower will live in the property. An owner-occupied loan is typically lower-interest than an investor loan because the lender is taking less risk. A first-time home buyer can also receive a $10,000 government grant and other assistance, which can make the whole process easier. This type of loan is a great way to finance a new home. But be sure to compare different options before choosing the one that's best for you.
Lender Valuation for Home Loans
A lender valuation for home loans is essential for approval of a loan. The lender should have a set policy regarding its valuations. The valuation should be done by an independent certified practising valuer and not a student. However, this is not always the case. Sometimes, valuers are appointed by a lending institution by the front line sales staff. This is a practice that skews the valuers' reports.
The lender will usually obtain an independent valuation of the property you intend to purchase. The lender will then calculate the loan-to-value ratio, or LVR, of the property. This LVR is expressed as a percentage. It is important to note that the higher the LVR, the higher the interest rate and LMI will be. For home loans in Sydney, the maximum LVR is 85%. The bank may be more flexible, but will require mortgage insurance to insure the loan against loss.
A refinance of a home loan may be an option if you are in mortgage arrears, depending on your circumstances and lender. Big 4 banks generally do not negotiate with arrears, and non-conforming lenders may be able to help you. A non-conforming lender is one that does not hold an Australian banking licence and is not a mutual society. In such cases, it is essential to find an alternative lender.
The number of Australians in mortgage arrears is increasing - a survey by S&P Global Ratings shows that more than one in five people is behind on their repayments. The number of mortgage holders over 90 days is at a record high - the highest since 1966. And the trend is expected to continue, with a further increase in mortgage arrears in the coming years. Despite the high numbers, the Australian housing market is thriving.
Lenders Mortgage Insurance
Brighter Finance is a financial service that protects the lender from loss if a borrower defaults on their home loan. This insurance is generally required for homes with a low deposit and high borrowing limits. The cost of LMI varies depending on the lender, the deposit size, and the type of home loan. It is recommended that home loan borrowers have LMI if they are planning to refinance their loan at a later stage.
You can avoid LMI premium by capitalising it. You can pay this once off fee and not on a monthly basis like with other insurance policies. However, you should be aware that you can't opt to pay the premium in monthly installments. In addition, LMI premium is not as flexible as other types of insurance. Hence, you may want to wait until you have a substantial deposit to avoid lenders mortgage insurance.