Mortgages Melbourne

What can a mortgage be used for?

No matter what reason you’re looking for a mortgage in Melbourne, Mortgage House has a wide range of financial products and credit products that can help you reach your property goals. Whatever your financial situation, we will use our years of experience to work closely with you every step of the way. If you’re buying your first home, a Melbourne mortgage can help you get off the rental treadmill and start accruing an asset of your own. Perhaps you are looking to enter the Melbourne mortgage market for a second or third time or buying a rental property as an investment. Applying for a mortgage in Melbourne can also get you access to the city’s bustling commercial real estate market, either as an investor or as part of your business operations or expansion.

A mortgage in Melbourne, and every other part of Australia, will fall into one of two categories:

• Owner Occupier. As an owner occupier, you are applying for financial products to buy a home you intend to live in, or a property to house your own business in.
• Investor. As an investor, you are buying a residential or commercial property as an investment, for someone else to live in or operate their business from.

Both of these options can give you an asset in the short term, one that can improve your financial situation in the long term if managed well. There are a wide range of mortgages in Melbourne to choose from, and choosing a suitable option depends on factors such as your own financial situation, the terms and conditions of the loan, the suitability of credit products to your goals, the features available and what interest rate is suitable for your budget. There are two types of interest rates when it comes to mortgages:

• Variable.  A Variable Rate Home Loan means the interest rate can increase or decrease over the life of the loan, based on a range of external and internal factors. These interest rates tend to be lower than comparable contemporary Fixed Rate Home Loans.
• Fixed. A Fixed Rate Home Loan is one where the interest rate will be fixed for an agreed period, with most banks and lenders offering them for between 1 and 5 years. At the end of the fixed rate period you can reapply for a new fixed rate term or let the home loan revert to a standard variable mortgage.

What is the average mortgage in Melbourne?

At the last census, the average mortgage in Melbourne was $1997 a month. Interestingly, that was the same average for a Melbourne mortgage in the previous census, five years earlier. That could be the result of stable economy and home loan market, and may be promising for those looking to buy homes in Melbourne. Interestingly, the average monthly household rental payment over that 5 year period rose by almost 20 per cent, a statistic that may help you make a decision if you are thinking of applying for a mortgage in Melbourne and buying your first home. Mortgage House has a wide range of mortgages and other financial products that can help you, including:

• Construction Home Loans. If you’re building a home, or even renovating, then a Construction Home Loan can save you money by staggering payments to builders only once agreed stages of your home have been built.
• Portable Home Loans. If you already have a Melbourne mortgage but want to move house, then a Portable Home Loan can help make the move that little bit less stressful.
• Bridging Home Loan. If you are buying a new home and selling your existing one, these home loans can help make that process smoother.
• Split Home Loans. Split your Melbourne mortgage between fixed and variable interest rates with these credit products, choosing the percentage of both yourself.
• Toggle Offset Home Loan. Use non-interest bearing bank accounts as offset accounts, toggling between fixed and variable interest rate sections of your mortgage to take advantage of interest rate levels and save money.
• Interest Only Home Loan. These financial products mean you only pay back the interest amount of a home loan, usually for up to 10 years.
• Low Doc Home Loan. If you are looking for a Melbourne mortgage and you are a freelancer, a subcontractor or are self-employed, you may not have access to documents most banks or lenders require when you apply for a loan. That is where these Melbourne mortgages can help.
• Low Deposit Home Loan. With rental prices the way they are in Melbourne, a mortgage can be hard to get, especially if you require a large deposit. Our Low Deposit Home Loans can help you overcome that hurdle.

How to get a mortgage in Melbourne?

The firsts step in applying for a mortgage in Melbourne is to contact our expert lenders and talk with them about the suitable options for you, whether you’re buying your first home, upgrading to a bigger one, or buying an investment or commercial property. You can apply over the phone or even do it online in five easy steps.

When you do, you’ll benefit from Mortgage House’s years of experience and our specialist technology that makes the process seamless. We will also ensure you’re aware of all the terms and conditions of the credit products you’re choosing from, and make sure the product disclosure statements are clear and understandable. Before you apply for a mortgage in Melbourne, it helps to have the wide range of documents on hand that you may need. These can include:

• Proof of ID. A passport or driver’s licence will probably be good enough, but you can also use a proof-of-age card, a citizenship certificate, Medicare card, a current rates or power bill or even your most recent tax assessment. If you’re applying for a First Home Owners Grant you will also need a copy of your birth certificate.
• Proof of income. Your past two payslips usually suffice, but if you’re on probation at work you may need a letter from your employer stating how long you have worked there, your gross or net income, as well as any overtime or allowances. If you have any Centrelink payments it is important to show proof of them, as well as rental income from investment properties. If you are looking for a mortgage in Melbourne to buy an investment property, then proof of existing or estimated rental income may also be required.
• Proof of expenses. You will need to outline, and provide proof or estimations for, as many of your expenses as you can, including school fees and child support.
• Proof of assets. Banks and lenders like to see bank account statements showing a history of savings, usually back about three months. They may also want to see details of any superannuation, other investments such as shares, and proof of the value of your home and car.
• Proof of liabilities. Banks and lenders will also want to know about any other credit products you have, such as mortgages, personal loans and credit cards.

Click here for more information and to see the full checklist.

How to pay off mortgage faster?

When you’re choosing a mortgage in Melbourne one of the key factors in making your decision can be whether or not you’re allowed to pay it off faster if you want to. Mortgage House has a range of financial products that won’t penalise you for making additional repayments. When you make extra repayments, not only do you pay off your mortgage faster, but in doing so you can save thousands of dollars of interest. If you’re unsure whether or not you can afford regular additional repayments, then a Melbourne mortgage that has a Redraw feature may be a suitable option. Redraw allows you to make additional repayments whenever you can, but withdraw them whenever you need, for whatever reason.

A good way to see how much you can save by paying off your Melbourne mortgage faster is to use our Mortgage Repayment Calculator. By adjusting the loan period, you can see how much you may be able to save.

Which is the best home loan provider in Melbourne?

Finding the best Melbourne mortgage provider means looking for one you can trust. The most basic step is ensuring they have an Australian Credit Licence, which all credit providers must have to offer services in Australia. From there it is about finding one that offers suitable financial products and a service you will benefit from.

At Mortgage House, we strive to provide loan and credit products and service outcomes that are tailored to the exact needs of every client. We do this through:

• Actively listening to our customers’ needs – not what we think their needs may be.
• Always identifying the best loan and mortgage finance products and options for each customer.
• Providing on-going support throughout the life of the loan.
• Engaging our specialist technology to ensure a simple and seamless process for the customer.
• Providing the customer all the tools, knowledge and experience that Mortgage House can provide.