What Type of Loan Do I Need?
You’re looking for a mortgage and you’re not sure where to start. There are so many types of mortgages and loans available that it can be difficult to decipher which one will meet your needs. First, you’ll need to identify what you’re going to use the loan for. Your lender will typically have a few options available to you depending on your situation. Let’s break those situations down, shall we?
First Time Buyers
You’re getting ready to buy your first home and you need a mortgage that will work with your lifestyle. Whether you’re on your own, a newlywed, have kids on the way, or have been a parent for a few years, there will be a few options you can choose from to suit your needs. The most common loans that are made available for first time home buyers are:
Whether you’re purchasing or building your own, your lender will help tailor your mortgage for you.
If you’re someone who’s investing in real estate, you’ll be looking for something more flexible and able to be manipulated depending on your changing needs. You’ll want to present your definitive investment plan to your lender so they can help you settle on the right loan with the best interest rate.
Investor loans are available in both fixed-rate and variable formats, but investors may also benefit from interest-only loans which allow the investor to only pay on the interest of the mortgage for several years. These interest-only loans give investors flexibility and financial freedom which can help immensely whether you’re an established investor or a first-timer.
Working for yourself or on a contract/freelance basis can make it a little bit difficult to get loans approved. A lot of lenders will be looking for verifiable employment history so they can be sure you’ll be able to pay into your loan. As long as you can provide some proof of income, however, a lot of lenders will be willing to work with you.
They’ll likely offer you a low doc loan so you don’t have to provide a lot of documentation to be able to get approved. These low doc loans can come in different forms but you’ll have to provide tax returns, financial statements, and have the ability to make the downpayment on your loan.
This is just a handful of the different life situations that lenders will make accommodations for. Every borrower has different needs, so lenders like Mortgage House Australia will do their best to tailor loans to your individual situation. We do our best to provide Australians with the information and support they need to take the next big step in their lives. Try out our borrowing calculator so you can get started checking out your options today.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s an exciting and very rewarding one. If you’re thinking of applying for a home loan, you can Apply Online today to get started!