What is a mortgage loan?
A mortgage is a loan from a bank or lender to help you buy any kind of property, either residential or commercial. There are a lot of different home loans on the market, so finding the right mortgage in Brisbane for you and your family can mean doing a bit of homework. At Mortgage House we can help guide you every step of the way, making your home loan application as easy as it can be. To start to compare home loans, identify what kind of mortgage you are looking for there are a range of mortgages to choose from including:
- First Home Buyer. If you’re buying a home for the first time, finding a first-home mortgage in Brisbane can take all the stress out of it.
- Second Home Buyer. If you’re buying another home, a Mortgage House home loan in Brisbane can help you take advantage of any equity you have built up.
- Investor. If you’re looking to buy an investment property, you may look to make a home loan application of a slightly different kind, and work out how you can leverage your current property.
- Refinancer. Finding a new mortgage in Brisbane can save you money and open up new features not available with your current home loan.
- Construction. If you’re thinking of building a home, a construction mortgage in Brisbane can be the perfect home loan for you. It is structured differently so you only make repayments after certain building stages have been met.
- Relocation. If you’re relocating your home or moving homes, a relocation mortgage in Brisbane can help take some of the stress out of the process.
- Self Employed. Being self-employed can have its challenges when it comes to the documentation needed for a home loan application. That’s why we have this kind of mortgage in Brisbane available for you.
Whatever kind of home loan you’re looking for, there are two types of interest rates you can choose from, and both have their pros and cons.
- Variable. A variable rate mortgage means you’re interest rate, and therefore your repayments, can increase or decrease over the life of the loan, based on a range of internal and external variables. A variable interest rate loan is the most popular in Australia, as rates tend to be lower than fixed rate home loans.
- Fixed. A fixed rate mortgage means your interest rate will stay the same over an agreed period, usually between 1 and 5 years. This can help your budgeting as the repayments will stay the same over the agreed period.
It’s important when you’re looking for a suitable interest rate to also look at the Comparison Rate figure that will be advertised alongside it. A Comparison Rate is designed to help you compare home loans, by taking into account the fees and charges of a financial product you may have to pay over the life of the loan.
How much is a mortgage in Brisbane?
Getting an idea of how much a mortgage could cost you over the life of the loan before you even make a loan application is easy. But first, work out what kind of repayments may be suitable for you. Banks and lenders will offer two kinds of repayment options on your different home loan:
- Principal and Interest. With this kind of mortgage your repayments will be made up of both the principal amount you have borrowed and the interest you are charged. It will be broken down over the life of the loan.
- Interest-Only. If you choose Interest-Only repayments for your mortgage in Brisbane, your repayments will only be made up of the interest your bank or lender is charging. The interest-only period will usually only be for up to 10 years.
Once you have worked out which kind of repayment is suitable for you and your family, a Mortgage Repayment Calculator can help you find out the other information you’re after. All you need to do to is provide the loan amount and loan details, as well as the interest rate of the mortgage you are interested in. A Mortgage Repayment Calculator will then tell you what your repayments are likely to be over the loan period, how much of them will be made up of interest and how much of principal, and how much interest you are likely to pay over the life of the loan.
Mortgage Repayment Calculator
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House’s prevailing credit criteria apply. Please note that your actual fortnightly repayment would be equal to the monthly repayment amount divided by two. Weekly repayments would equal the monthly repayment amount divided by four. If you choose to pay fortnightly or weekly, your actual repayments will be higher than repayments shown on this page. You can reduce the term of your loan if you choose to make repayments fortnightly or weekly. We recommend you seek independent legal and financial advice before proceeding with any loan.
Another mortgage calculator that can help you is a Borrowing Calculator. This tool can provide you with your borrowing power, which is how much you might be able to borrow, based on your current financial situation. Importantly, this information is only a guide and is not pre or conditional approval for a mortgage in Brisbane. But it is a good indication and can help you expand or narrow down your property search.
Important Disclaimer: This is intended as a guide only. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan. The Comparison Rate for each of the home loan products contained in this page is based on a loan of $150,000 over a 25 year term. Fees and charges may be payable.
WARNING: The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. * This mortgage calculator shows indicative repayments based on 12/26/52 equal repayments for monthly/fortnightly/weekly options.
One thing to remember with any mortgage in Brisbane is that there may be fees and charges and terms and conditions that may affect your home loan application. Ask our expert lenders any questions about this or other areas of your home loan before making your application.
How to calculate mortgage interest in Brisbane?
Whatever kind of mortgage in Brisbane you choose, you will have to pay interest, and the good news is you will know exactly how much. Interest is calculated on your mortgage balance daily. How much depends on the loan amount, the terms and conditions, fees and charges and interest rate. While it is calculated daily, you won’t be charged daily. Most banks and lenders will charge interest to your mortgage amount each month, simply adding up the daily amounts. A Best Rate Interest Calculator is one way to understand how much interest you will pay on your home loan and give you an idea of which Mortgage House home loan has suitable interest rates. It will rank all our home loans by interest rate, as well as giving you an idea of fees and charges, and the weekly, fortnightly and monthly repayment details.
Best Interest Rate Calculator
Important Disclaimer: This information is intended as a guide only. The calculation of fortnightly and weekly instalments varies with the specific loan product. Higher loan repayments will be required on principal and interest loans where the instalment calculation is based on half the monthly payment for a fortnightly payment or a quarter of the monthly payment for a weekly payment. Details of terms and conditions, interest rates, fees and charges are available upon application. Mortgage House's prevailing credit criteria apply. We recommend you seek independent legal and financial advice before proceeding with any loan.
It’s important to understand interest rates may not be the only way to find the most suitable home loan for you and your family. Speak to our home loan experts about terms and conditions and the many features of our Mortgage House home loans that may make a mortgage more suitable for you.
How to pay mortgage quicker?
Whatever kind of mortgage in Brisbane you choose, everyone wants to find out how to pay it off quicker. Paying your mortgage off quicker can save you thousands of dollars and help you on your way to financial independence. Mortgage House has a range of features that can help you do just that, or save thousands of dollars over the loan period. They include:
- Additional Repayments. Some banks and lenders will charge you extra for making additional repayments, Mortgage House has a range of home loans that won’t penalise you. Making additional repayments can help you pay off your home loan sooner. It can also save you thousands of dollars, because paying off your mortgage in Brisbane sooner means you’ll save on interest.
- Redraw. If you like the idea of making extra repayments but aren’t sure whether you’ll be able to afford them on a regular basis, redraw could be the perfect compromise for you. It allows you to make additional repayments and lump sum payments, but withdraw them whenever you want. You can access those additional payments at any time and for any reason, whatever you need the money for. It doesn’t have to be associated with your home or property.
- Offset Account. Having access to the Offset Account feature with your mortgage in Brisbane could help you save money over the life of the loan. An offset account is a non-interest bearing bank account you can use to offset against your home loan for interest purposes. The interest is calculated on the difference between the offset account and the home loan balance, not the total mortgage account itself.
If you want to have a dummy run to see how much you can save by paying off your home loan sooner, have a play with our Mortgage Repayment Calculator. All you need to do is reduce the loan period. What you’ll discover is the repayments will increase, but the amount of overall interest you pay over the life of your loan will decrease significantly.
However, it’s important to remember there may also be fees and charges associated with your home loan, so take these into consideration. These fees and charges can include:
- Monthly Fee
- Package Fee
- Rate Lock fee
- Application Fee
- Valuation Fee
- Settlement Fee
- Discharge Fee
If you have any questions about any of these fees, speak to our expert lenders.