View our range of videos to help you prepare for a loan. Curate by our expert team of Newcastle, Maitland & Hunter Valley loan specialists.
What Information Do We Need From You For Your Loan
What information do we need:
PAYG employee – 2 most recent pay slips and previous years PAYG summary
Self Employed – Last 2 years tax returns – personal and business including NOA’s and profit & loss and balance sheet, 3 months business account statement
Other Income – Rental statements, rental appraisal (if property being purchased is to be used as an investment), current government pension statements showing regular income
6 months statements for all existing debts
Rates notice for existing properties
Contract of sale (if purchasing)
Construction – Tender/building contracts including progress payment schedule, plans and specifications
Front page of your internet banking
3 months statement for your pay account
6 months bank statement for genuine savings
100 points of identification
Choosing The Right Loan For You
To find a loan that suits your needs and financial situation, it’s important to understand the differences between the loan products available.
Variable Rate – means your repayments go up and down as interest rates change
Fixed Rate – gives you the certainty of knowing what your repayments will be with an interest rate that stays the same for a set period
Interest Only – is a loan where you pay only the interest for some or all of the term, with the principle balance remaining unchanged during the interest only period.
Principle & Interest Loan – repayments on principle and interest loans are higher because you’re simultaneously paying interest and paying off the original loan balance.
Loan Types Explained
Choosing the right loan makes your money work harder for you. However, deciding which loan is right for you can be overwhelming and confusing, due to the wide variety of home loans available—all with different interest rates and features.
Basic home loan – excellent option if you’re looking for a simple loan
Standard variable rate loans – have more features than a basic home loan including the benefit of an offset account and/or redraw facilities
Introductory rate home loan – suitable if you’re looking to minimise your initial home loan repayments. Offers a reduced interest rate and lower repayments for a set time.
Fixed rate home loan – allows you to lock into an interest rate for a period which can be anywhere from 1 to 7 years
Split loan – offers you the option of having part of your loan fixed and part variable
Timeframes Vary Lender to Lender
Depending on what lender you go though, what time of the year it is, and if that lender has any campaigns going, timing can vary quite a bit. So depending on the variants a loan can take a couple of days to maybe a couple of weeks to get your conditional approval.
How to Compare Home Loans and Features
How to compare home loans and features:
Principal and Interest
Variable Home Loan
Fixed Home Loan
Split Home Loan
6 negotiation tactics for property buyers
Nobody wants to pay more than the current market value for a home. Here are six negotiation tactics to help you get the right price on your Spring property purchase.
1. Research the market value in advance
2. Know your ceiling price
3. Be confident of your finances
4. Understand the seller’s motivations
5. Use your building and pest inspection report as a negotiation tool
6. Know when to walk away
Happy property hunting!
How do your living expenses affect your borrowing power
You may be surprised to discover that how much you spend on day-to-day living can considerably reduce the amount you are eligible to borrow, even if you are a high-income earner. So, if you’re planning to buy a home, it may be time to cut back on some of life’s little luxuries and set yourself a strict weekly budget. Here’s why.