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Home Loans On the Gold Coast
Most Australians dream of owning their own home. However there is such a large number of loans and lending solutions designed for different circumstances. This can make it hard to understand the process of applying for a loan and the implications involved in your decision.
This guide to Gold Coast home loans will walk you through the basics of a mortgage and the tricks and traps to consider before taking that initial first step. After having gone through this free resource, you will:
- Learn the basics of mortgages and home loans in Australia
- Get an understanding of the implications involved in taking out a loan
- Find out what you need to consider before applying for a mortgage
- Gain access to expert advice from Gold Coast professionals
Get the Right Loan For Your Dream Home!
Home Loan (Mortgage) Basics
What is a mortgage?
A mortgage is an offering of a property as security for a loan. The loan finances the property, with the property being owned by the lender until payment has completed.
By obtaining a home loan, the borrower is able to buy a house or other real estate. This guide will cover the basics involved in home loans; both obtaining a home loan and paying it off.
Types of Home Loans Gold Coast
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 in Gold Coast you can choose from:
1. Term loan
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.
Term mortgages include subcategories such as:
- Fixed/Variable
- Interest Only
- Full or Low Documentation
- Construction Loan
2. Line of credit
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.
Types of Home Loan Interest Rates
Home Loans come in many forms, due to the many components that make up the loan. The most important component of a mortgage is the interest rate charged by the lender. If you want a loan of $400,000, you will have to pay back that money plus the set interest.
You will typically make these repayments monthly, although there are options available to make repayments fortnightly or weekly, with the interest that you pay compounded with each repayment.
Over time, the lender will change your interest rate, meaning that the amount of your repayments will either increase or decrease. If you are uncomfortable about the possibility of having to pay more per month, you may wish to consider a fixed-rate mortgage, where the interest rate stays at an agreed level.
Variable rate home loans
The interest rate of a variable rate loan will fluctuate from time to time. Some variable-rate mortgages include:
Standard variable rate mortgage:
this is a mortgage at the lender’s normal rate.
Discounted rate mortgage:
this is a mortgage that starts with a low-interest rate. Check what the rate is after the discount period and whether there are early repayments fees if you pay the mortgage out during the discount period, or after.
-
Advantage:
More flexible than a fixed-rate loan. No limit to extra payments being made. Eligible for package interest rate discounts. -
Disadvantage:
If interest rates increase, this will be passed on to you as the borrower.
Fixed rate home loans
Fixed-rate loans generally have the interest rate fixed for a term from one to five years with lenders occasionally a ten-year term.
This type of loan offers more certainty, as borrowers can be sure that their repayments will stay the same each month and not fluctuate with changes in interest rates. Fixed rate home loans are especially attractive to those planning to remain in the property long term, as they provide security in terms of budgeting and financial planning.
-
Advantage:
Allows peace of mind that interest rates and repayments do not change for the duration of the fixed period. -
Disadvantage:
Provides less flexibility; as your circumstances change the loan is not adaptable further penalties may apply if the fixed loan term is broken.
Can you Afford to Buy it? Are you Ready to Talk to a First Home Buyer Mortgage Broker?
In the long term, buying a home can be more cost-effective than renting one. You probably already know this, that is why you’re gearing up on your journey to buying your first home.
The best way to prepare yourself for this undertaking is by arranging a consultation with a finance broker Gold Coast. Sure, you can read up on the basics online or browse through loan terms, but having a smart, practical and knowledgeable expert guide you through the process can make all the difference.
Plus, having an extra pair of eyes on your finances makes sure you get the best first home buyer deal – and that’s just good sense. So if you’re ready for a first conversation about first home buying, take the first step and talk to one of our experienced mortgage brokers today.
But before you do, you need to consider the below factors:
Your Income
Income of Your
Co-Purchaser
Assets and Liabilities
Future Plans
The initial preparation for a Gold Coast Home loan
Initial preparation is an essential part of the process and involves getting all your financials in order. So what’s involved? Below are ways you can prepare yourself before you start filing your home loan application:
1. Find a home that you’d like to buy
To research homes available for sale, visit real estate agents and search internet sites to find areas that have the potential for growth.
Talk to one of our brokers who has access to a number of databases that can give you the inside information on a property you are looking at, like how much the owners paid for it, what the land value is and what has sold near it recently.
2. Determine how much you can afford
To determine how much you can afford, you must first analyze your current income and expenditure to decide how much you have leftover for mortgage repayments.
To help you review your personal financial situation, create a monthly budget worksheet to track your expenses and discover where you spend your money.
This could include:
Food
Housing (rent or mortgage)
Travel expenses (petrol, car maintenance etc.)
Utilities (mobile phone, water, heat, etc.)
Insurance (car, homeowners, health etc.)
Taxes (income etc.)
Credit card
Clothing
Entertainment (restaurants, movies etc.)
Vacation/Holidays
Alcohol and tobacco (if applicable)
Pay TV and internet expenses
This amount is your take-home pay after all taxes and other income-related expenses are taken into account.
To find your discretionary income subtract your total expenses from your income.
Post-tax income – Total expenses = Discretionary income
The amount left is money through which you can save or put towards your short and long term goals.
3. How much can you borrow on the Gold Coast?
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.
4. Do you need a deposit? – If so how much?
Just like loan amounts, the deposit required may vary from lender to lender. Some lenders offer 5% deposit home loans. Depending on the location of the property or the type of loan, you may need a deposit as high as 20%.
However, there are times where no deposit is required, such as, if you already own a property, you have a reasonable income, or you have a guarantor. Alternatively, you will need to demonstrate the following (as a guideline):
-
Genuine savings:
By saving 5% or the purchase price (from your regular income) over a period of six months, you will be able to show the lender that you are able to budget appropriately to afford repayments. -
Non-genuine savings:
These include gifts and inheritance. They are not included as savings but can be used towards the payment of a deposit.
5. Review your personal financial situation
- Expenses: these include both fixed and variable costs.
- Fixed costs include school fees, travel to and from work and rent or mortgage repayments
- Variable costs include groceries, entertainment and going to restaurants
- Income: These include sources of monthly or fortnightly income such as wages, commissions, bonuses, social security, and retirement benefits.
- Assets: An asset is a property or possession you own either partly or wholly; such as a car
- Debts: Money, goods, or services owed by one person to another. For example, credit cards, car loans, and student loans.
6. List your short and long term goals
Establishing your short and long-term goals is important so that you ensure you put enough money aside to pay for these expenses in conjunction with your mortgage repayments.
-
Long-term goals
include real estate purchases, future education, and retirement. -
Short-term goals
include home improvements, a new car, and travel. You should also take into account other desired investments including shares, bonds, and mutual funds.
Frequently Asked Questions About
Gold Coast Home Loans
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.
Here are steps on how to apply for home loans: first, you’ll need to determine how much you can afford to borrow and what type of loan is best suited to your needs. You’ll then need to compare different lenders and their offerings in order to find the right deal for you. After that, it’s time to submit an application with the lender. This will involve proving your income and other financial details, as well as undergoing a credit check. Once approved and all paperwork has been signed, your loan will be ready to drawdown, which is when the money is transferred into your bank account.
A home loan works by allowing a borrower to borrow money from a lender in order to purchase property. The borrower agrees to repay the loan, plus interest, over an agreed upon period of time. During this time, the borrower makes regular payments that go towards covering the principal amount and the accumulated interest due. When the loan is fully repaid, title to the property is transferred back to the borrower.
In Queensland, the minimum amount required for a house deposit is 20% of the purchase price. However, depending on your lender and circumstances, this amount may vary. Make sure to talk to your lender in order to determine what deposit amount is necessary for you to secure a loan.
Loan to Value Ratio (LVR) is a financial term used in home loans. It refers to the ratio of the loan amount to the value of the property. The LVR is usually expressed as a percentage and represents how much you are borrowing from your bank or lender relative to the value of your home. A higher LVR represents an increased risk for lenders and so may result in higher interest rates or require a larger deposit for your loan.
Offset is a type of savings account that links directly to your home loan. The balance in the offset account offsets the balance of your home loan, meaning any money held in the account is not used to calculate interest on your loan. By holding money in the offset account, you can save on both the repayment time and amount of interest paid on your loan over its lifespan. On some loans, you will have access to redraw funds, allowing you to withdraw saved money when needed.
There are a variety of home loan options available depending on your circumstances. These include fixed rate loans, variable rate loans, split rate loans and lines of credit. Fixed rate loans offer the security of knowing what your repayments will be over the life of the loan while variable rate loans provide you with more flexible repayment amounts which can change as market rates fluctuate. Split rate loans allow you to mix a portion of each type while a line of credit allows you to borrow up to an approved amount and use it when required.
A comparison rate is a single rate which takes into account both the advertised interest rate of the loan and any additional fees or charges which may be associated with it. This is to ensure that people have an easier time comparing different home loans and understanding the true cost of their loan. The comparison rate for each loan can be found on the products disclosure statement and will help you get a clearer picture of your total costs.
The qualifications for no deposit home loans on the Gold Coast will depend on several factors such as your current income, employment status, and credit history. Most lenders require a minimum income to qualify, although some may provide additional requirements such as proof of assets or additional security. It is best to speak with a qualified mortgage broker or financial adviser to determine if you are eligible for no deposit home loans Gold Coast.
Why You Should Get a Mortgage Broker On Board When Buying
Your First Home
Getting a mortgage broker on board when buying your first home can help you to secure the best loan rate available and save time researching different lenders and their requirements.
Mortgage brokers also have experience and knowledge in navigating the paperwork process, as well as understanding all of the details that come with a home loan. They can help to make sure that you get the best deal possible, as well as providing advice and guidance throughout the entire process.
At Professional Lending Solutions, we make sure we find the right lending solutions that best match your current circumstances and needs. We also take into consideration the lender’s costs, service history, and accessibility.
We like getting to know you so that we can provide you with what you need and not just what you have asked for. This also helps us provide a greater picture to the banks and other lenders when seeking funding for you.
We are a team of very experienced brokers that are a part of a large network that supports each other. We aim to provide you with the most up-to-date lending solutions in the market.
Expert Advice
Objective Assessment
Improved Chances of Approval
Negotiation Power
Streamlined Process
Testimonials for Our Professional Lending Solutions Brokers for First Home Buyers Gold Coast
A heartfelt thank you!! Goes out to Phil and the entire team atProfessional Lending Solutions. Their unwavering support and guidance have been crucial in ensuring the success of my property journey. I am truly grateful for everything they have done and could not have accomplished this without their expertise and assistance.
Phil and Professional Lending Solutions helped us sort out a home loan on very short notice, and it was smooth and hassle free. We were very impressed with Phil's friendly and professional interactions. Thank you so much!
Phil, Jenny and team worked tirelessly to get our transaction over the line. Given the tight timeframes, and more complicated refinance and purchase there were numerous credit conversations. We were fortunate to have their advice, industry expertise and ability to deliver under changing circumstances. Ultimately, Charlotte and I were able to settle on time and seamlessly with Professional Lending Solutions help.
Fantastic customer service again and again. We have been with Phil and his team at Professional Lending Solutions for 5+ years now. Phil helps our small business with a variety of essentials, ranging from cash flow to equipment loans to vehicle finance and of course the complimentary personalised business advice that’s invaluable, which helps us to make educated financial decisions.
Phil and the team at Professional Lending Solutions provide a great service, have a wealth of knowledge, and conduct their business in a very professional and timely manner. I would recommend them to anyone looking for finance.
We couldn't recommend Phil and his team enough! We've been working with Phil for about six months to get us to a position where we are able to purchase our own home, and are getting ready to move into our dream home as we speak.Phil's been straight up with us in regards to our options throughout the whole journey, and worked with his connections to get our application across the line amid investment property settlements, and the added complication of both of us owning our own businesses.We hope to never move again (!) but will be back to talk to Phil for our refinance options in the future 🙂
Phil was amazing to work with, very knowledgeable and was a stress free process to refinance my loans. Would highly recommend his services.
Phil was recommended to us and we could not be happier with the result we achieved having him by our side for the sale of our home and the purchase of our new home.Phil was incredibly prompt, honest and professional. He addressed every single query (and there were MULTIPLE) in such a timely manner. Phil helped map out the nitty gritty details from the get-go with honesty and his professional opinion so that when we decided to go ahead and buy in this current market, instead of waiting, we were able to achieve settlement in such a tight timeframe (21 days to be exact). We will DEFINITELY be approaching Phil in the future and are 110% more than HAPPY to recommend him to friends and family. Jenny, thank you for being the behind-the-scenes magician during our entire journey. We are very appreciative of your hard work (especially in the moments right before settlement).
I have been using Dean for all my financial requirements for a few years now, along with others in my family. He has become our family finance guy. He always finds the right deal, gives great advice and makes the journey easy. I recommend to anyone !
I was recommended the service of Phil through my Real estate agent.,if you need assistance with your home lending please go and see Phil, exceptional service and with his corporate Banking background he understood our finance need and was able to recommended the right product for us.Thank you Phil & team
Phil was brilliant. The turnaround for our re-mortgage was very quick, and Phil made the process seamless. Would recommend 10/10.
Phil & his team are amazingThey supported us through buying our first home in Australia, they were always on hand to answer our many questions either via email, phone or in person.Super professional but also down to earth and friendly- would 100% recommend
I cannot express how grateful I am for the exceptional service I received from Phil during my journey to buy my first home. From the very beginning, his dedication to guiding me through the complex process of obtaining a mortgage was truly remarkable.Phil demonstrated a level of honesty and transparency that I never expected from a mortgage broker. He patiently walked me through all the available options, explaining every detail in a way that made sense. His expertise gave me confidence in the decisions I was making.What truly set Phil apart was his commitment to my best interests. He went above and beyond to find a loan that was tailored to my financial situation, ensuring that I wasn't taking on more than I could handle. His advice was always genuine and well-informed, and I never felt pressured into making any decisions.Throughout the entire process, Phil was incredibly responsive. He promptly answered all my questions, no matter how big or small. It was evident that he genuinely cared about my experience and wanted to see me succeed in securing the best mortgage for my new home.I cannot recommend Phil highly enough.
Phil and the team at Professional Lending Solutions worked with us efficiently to help us secure our family home. The team kept us informed and helped us every step of the way. Our experience with Professional Lending Solutions was fantastic and I would highly recommend!
This business does a very professional job and made the whole process of our financial application smooth and easy. Phil also was very responsible and respectful and i felt we could trust him and his process as well. Highly recommend this broker!
As a first home buyer the whole process was a bit daunting. Phil and the team were in real and simplified the lot. They really went to battle with the banks for me (being self employed) and got me the best possible outcome. Can’t recommend them high enough !
Phil and his team went above and beyond with the service they provided.I have been a long term client of PLS as I could not find a house that met my budget.Phil was very understanding as he listened to all my questions I had to ask. He provided me honest feedback which made me feel safe and comfortable that I made the right choice in choosing him.Because it was my first time buying, PLS answered every question I had without frustration or judgement as they had to explain things to me once, twice and something a third.It was a very stressful life decision that should not be taken lightly and with Phil and his team behind you, you will never be made to feel as if you made the wrong choice with choosing them as a Broker.Many thanks once again.
We couldn't recommend Phil and his team enough. They were amazing and so helpful through the whole process. Having only moved to the country 6 months prior it was a stressful situation for us but they made it so easy and stress free. Will definitely use them in the future if need be!!
Phil and the team from Professional Lending Solutions were very easy to work with and as with the name states were very professional!For clarity I’ve known Phil for many years and I’ve seen how he was able to help others get into their first homes and even second homes. It was now our time for the team to help us.We had many questions and were able to get all the answers we needed to make the right decisions.If your looking for a professional team that takes the time to explain all the processes, keeps you informed and gets things done then take the time to give them a call to see how they can help make your dreams a reality!
We went to see Phil to refinance our home loan and consolidate our loans. Phil was full of information and very professional. We couldn't believe how quick Phil had got everything done for us. So thankyou very much Phil we would definitely be referring family and friends.
Phil, Jenny and the team at Professional Lending Solutions were more than what we could of hoped for. Very informative and were there through every step of the process. We couldn't done it all without them. I cannot recommend them highly enough. Every single one of the team is friendly and totally professional and helped put us at ease through every step.Thank you!
We were reccomended Phil and his team from word of mouth (people I work with). As first time buyers we had many questions and alot of learning to do. Phil and his team were always a email or phone call away and were happy to answer all the questions we had. The process was easy from our very first face-to-face meeting and we felt confident in putting our trust in this team. Thank-you so much for starting us on a property journey. We would highly recommend their business! Pete and Marie
Phil & his team were absolutely amazing through the whole process of buying our home. They were happy to answer any and all of our questions no matter how silly they were and guided us through the whole process. They made buying our home stress free and let us enjoy all the excitement without having to be concerned about all the small details.If you are looking to buy a house or even just considering it you should definitely give Phil and his team a call. They will get you right on the path to your home.
Phil got our first home loan 8yrs ago when we thought we couldn't and since then we've refinanced several times to ensure best rates as well as a business car loan. Always a personal approach, highly recommended.
The best brokers in the business.Phil and the team at PLS went above and beyond to help us refinance our mortgage and find the best solution for our circumstances.Phil is professional and fantastic to deal with.Highly recommended!
Very happy we went with Phil and his team, being our first home we didn’t know what to do or understand a lot about buying a property we just knew we wanted one and Phil and his team walked us through every step and made it easy! Would 200% recommend
Mel, Phil and the team at Professional Lending Solutions were simply amazing. Nothing was too much of a hassle. They made the whole experience extremely easy, stress free and had it approved within 3 days. We couldn't be happier with the service and would highly recommend their business! Will be using again!
Phil was incredibly helpful, patient and honest throughout the entire process of re-financing. I appreciated his thorough and detailed answers to my questions, as well as his amiable nature. He was open and spoke with great candour, ensuring the entire process was simple, stress free and, straightforward. All in all a top bloke and skilled broker who I would certainly recommend. Thanks again!
You should use Phil and the team at Professional Lending Solutions! We have used them a couple of times and they make it so much easier to manage the mortgage process - and know you’re getting the best personalised deal. Phil is so lovely and very responsive. Will be using them again.
We recently went through the often stressful process of selling our home and purchasing another. Phil and his team came up with the best tailored finance solution for our situation and were always on hand to provide guidance around the process from start to finish.I couldn’t recommend Professional Lending Solutions any higher, they were simply superb to deal with!!!!
Many thanks to Phil and the wonderful Professional Lending Solutions team! Having Phil in our corner for our financial needs has played a key role in securing the appropriate home loans for us. Highly recommend!
Phil Verheijen has been fantastic in providing advice on all matters of the lending system for purchasing my first property. I can highly recommend Phil as he is genuine and professional. Also his friendly team were extremely helpful.
Professional Lending Solutions were absolutely amazing. After several bad experiences with other brokers in the past. These guys were straight to the point, very professional, excellent customer service and got our loan approved so quickly. They provided support and advice before and after the purchase of our home.Highly recommended.
Dealing with Phil and the team at Professional Lending Solutions was amazing.Absolutely incredible communication and professional support and advice throughout.Phil was happy to answer all our questions and explained the process to us with great detail.If you ever need a good broker please do yourself a favour and see Phil. You will not be disappointed. Thanks again Phil and the team at Professional Lending Solutions. Keep up the great work.
