Home Loans
SECURING A Home Loan in Tasmania
A finance broker can be a very useful partner for a first home buyer. For most people, buying a property is the biggest investment they will make in their lives.
We understand that selecting a suitable home loan or other mortgage product in Australia’s increasingly complex market is an important, though not always easy, decision. That’s why we strive to get the right home loan product at the best rate for every client and provide a stress-free transaction by making sure the loan application process is monitored right through to settlement and beyond.
Your Vie Financial broker will assess your financial situation as part of a needs analysis, and match your requirements to a wide range of loans from banks and other financial institutions, provide you with advice to enable you to make an informed decision from the selection, complete your application and manage the process right through to settlement.
PARENTAL GUARANTEE Home Loans
Statistically, almost 50% of first home buyers get financial help from their parents or family to assist with the purchase of their first home, normally as an informal loan or gift.
A Parental Guarantee Home Loan enables a family member to use equity from their own home as additional security for a portion of the applicant’s loan amount.
This solution reduces the loan to value ratio of the application, allowing significant savings by reducing or even avoiding the need to pay lender’s mortgage insurance. It may also enable the ability to borrow the total purchase price plus costs, avoiding the need to save a deposit (subject to lending criteria). This strategy can be used when buying established dwellings or for the construction of new properties, and is not restricted to first home buyers.
THE BASICS FROM Mortgage Brokers in Tasmania
If you’re new to the home buying process and unsure of where to start, don’t worry, we are here to help. At Vie Financial, we are much more than home loan brokers.
You can call us any time, and we will happily guide you through the Australian home loans process every step of the way. That being said, here are some first home buyer basics to get you off on the right track.
BUYING Power
Whether it’s your first home or your fourth, you need to determine your buying power and how much you can borrow.
This will help keep you from wasting time on out-of-reach properties and allow you to focus on properties within your budget.
EXTRA Costs
There are extra costs to consider when buying a property.
From legal fees and stamp duty to building inspections and insurance, you should leave extra room in your budget to make sure your bases are covered.
AUSTRALIA & TASSIE LOANS Understand Options
There is a wide variety of loan options to choose from. Become familiar with them to select the best one for you.
There are even Parental Guarantee Home Loans below designed for first home buyers with parents in a position to help.
HOME LOANS The Australian Way
Buying a property is a serious investment – hence why it’s important to do your research to find out which home loan is right for you.
Rather than overwhelming you with information, your Vie Financial broker will work through the different types of loans, features and options available – helping you compare and assisting you to choose the most suitable loan.
From our panel of more than 40 lenders, we can offer you a level of choice that goes far beyond the big four banks.
YOUR HOUSING LOAN Options at First Glance
Fixed-rate Australian and Tassie home loans have a fixed interest rate for an extended period of time.
Variable loans have interest rates that fluctuate whenever the bank hikes or lowers its interest rates.
With split-rate loans, part of the loan has a variable interest rate, and the other portion of the loan is fixed. This provides both flexibility and risk management.
Self-employed? No problem. Low-doc loans provide funding with fewer proof of income documents, but the interest rates are often higher than the current variable rate.
The options don’t stop there. There are no or low deposit home loans, professional or packaged home loans, parental guarantee home loans, and more!
REFINANCE & Debt Consolidation
Debt consolidation is the process of rolling (or “consolidating”) a number of different debts into a single loan, often with a lower overall interest rate.
It can be a useful option if you’re juggling multiple debts like a personal loan, a car loan and perhaps a few credit card balances. By consolidating your debts, you may only have to make one monthly repayment instead of several, and you may only be dealing with one lender and one set of loan statements.
The biggest advantage of debt consolidation is the potential for big savings on your monthly repayments and overall interest charges. Many people, choose to use their home loan for debt consolidation because it offers a very low-interest rate, but there are several other options including a personal loan or credit card balance transfer.
DETERMINE DIFFERENT INTEREST RATES With Our Online Mortgage Calculator
NON-CONFORMING Loan Options
Loans in arrears, no taxable proof of income, poor credit history, defaults on existing or past loans and debts? A Non-Conforming loan could be the solution.
Vie Financial brokers are all highly experienced professionals in Non-Conforming Loans and are committed to assisting you in whatever capacity your circumstances require.
Whether you are looking to refinance and consolidate all your outstanding debt, taking into consideration that you may have loans in arrears, no taxable proof of income, poor credit history, defaults on existing or past loans and debts, at Vie Financial we do not believe in a ‘too hard basket’ and will work tirelessly to find the most suitable solution for our clients.
At Vie Financial, we understand life isn’t black and white and that not everyone can meet a lender’s standard criteria. If you’re looking for a home loan in Tasmania or anywhere in Australia, we have access to an array of non-conforming loan options, giving you the opportunity to make your dreams of homeownership a reality.
With a non-conforming loan, you can purchase a home, rebuild your credit rating, and get a financial fresh start. However, non-conforming loans typically come with higher interest rates and fees. Our extensive lender database can help you identify the best non-conforming home loan for your situation and needs.
To learn more about non-conforming home loans and explore your borrowing options, give us a call (1300 400 843) today!
LET US ANSWER Your Questions
When applying for a home loan, the amount you will be approved for depends on a variety of factors. Your income, employment status, debt, living expenses, and the size of your deposit will all help determine your approval amount and purchasing power.
To determine how much you can afford, it’s best to determine your maximum monthly mortgage budget. If you opt for a variable rate loan, leave a buffer of two to three percent for interest rate changes. Additional costs such as legal fees, building inspections and stamp duty should also be factored into the equation.
It’s also smart to factor in any potential future changes to your income and personal circumstances. The average home loan lasts for 30 years, and plenty can happen during this time.
In most cases, yes. Most lenders prefer a down payment of at least 20 percent. This tells them you are a ‘safe’ borrower with a low likelihood of defaulting on the loan.
Having a sizeable down payment and being considered a safe borrower will give you a number of lenders to choose from and lower interest rates. In most cases, a deposit of at least 20 percent also means you will not need lender’s mortgage insurance, saving you thousands of dollars over the life of the loan.
Banks view mortgage applicants with smaller deposits as being high risk, resulting in higher interest rates reflective of the added ‘risk.’ The less you’re able to save for a deposit, the higher your lender’s mortgage insurance payments will be as well.
Although you can be approved for a mortgage with a deposit of only five percent, or even none at all, it will increase your monthly payments and take away from your purchasing power.
Lender’s mortgage insurance, or LMI, provides the bank with protection should you default on your mortgage loan. The bank takes out the policy, but you are responsible for paying the premium. Rather than paying for the policy upfront at one time, it can be rolled into the total mortgage amount and calculated into your monthly mortgage payments.
LMI is generally required for mortgage loans with an LVR of at least 80 percent, or when the down payment is less than 20 percent. LMI policies are non-transferable, which means you will need to foot the bill if you decide to sell and have less than 20 percent equity. This is true even if you use the same lender to purchase another property.
Rather than requiring LMI, some lenders require a low deposit premium instead. As is the case with LMI, the premium is bundled into the mortgage loan, allowing borrowers to pay it off gradually over time.
There are several home loan options available to people throughout Australia and Tasmania, such as:
- Fixed-rate loans
- Variable-rate loans
- Split-rate loans
- Low-doc loans
- Low-deposit loans
- No-deposit loans
- Professional or packaged loans
- Parental guarantee home loans and more!