Find the right loan for your dream home with Professional Lending Solutions. Our comprehensive guide simplifies the process, and our personalised guidance ensures you get the loan that’s right for you. Watch our owner and lending expert, Phil, share his insights in the video below. Ready to take the first step? Book an appointment with Phil today and let us guide you with confidence and eases.
At Professional Lending Solutions, we have defined home loans into two types, so you can understand the home loan process. There are two main types of home loans you can choose from:
A line of credit loan allows you to access the equity in your home to use as you wish. It is an ongoing loan and generally comes with a credit card. This type of lending is useful to pay for costs including renovations on your home.
Your salary and other income dividends are directly credited to the loan, you use the lender’s credit card for everyday expenses and make a single payment sweep at the end of the month – paying off the credit card. This maximized repayments on the loan reducing interest and enabling the loan to be paid off sooner.
Mortgages are taken out over an agreed term, generally 25-30 years, and are thus classified as a term loan. Regular repayments are made throughout this period, according to the interest rate that applies at the time.
Longer mortgage terms will result in lower monthly repayments but the total repayments over the life of the loan will be more than shorter-term loans.
Home loan comparison rates are designed to give borrowers a more accurate idea of the total cost of a loan. They take into account not only the interest rate, but also any fees and charges associated with the loan. By comparing the comparison rates of different loans, borrowers can get a better understanding of which loans are truly the most affordable. At Professional Lending Solutions, we’ll help you navigate the ins and outs of home loan comparison rates and find the loan that’s right for you.
The amount you can borrow is dependent on a number of factors, such as expenses, income and current debts. Most lenders will base the size of your Gold Coast home loans on your capacity to meet monthly repayments.
Typically, lenders prefer a 20% deposit but many have a minimum as low as 5% of the purchase price. There are also instances where you may be able to obtain a home loan with no deposit, such as when you can access equity of an existing property, you have a guarantor, or you can demonstrate a mix of genuine and non-genuine savings like monetary gifts or inheritance.
Where a variable interest rate fluctuates from time to time according to the lender’s current interest rate, a fixed-rate loan generally has the same interest rate locked in for a term from one to five years. It is best to speak to a mortgage broker about which will suit you best for your personal situation and financial goals.
An experienced mortgage broker will guide you through everything you need to make sure your application has everything a lender will need to give you approval first time around. A mortgage broker has a legal duty to work in your best interest – banks don’t! – and they can review your financial situation in order to match you with the right lender and home loan product.
Pre-approval allows you to have your finance application assessed by the lender before formal approval. This is a great idea because you will know how much the lender will give you for your home loan and that puts you on the right foot for looking at the right homes in your budget and confidently making offers you know you can afford.
