Home Loan Questions

Q: How much deposit do I need to buy a house?

Usually 5 – 10% depending upon the lender.  We have over 30 lenders, so we will help you with your options

Q: I don’t have savings over 3 months.  Can I still buy a house?

Genuine savings is over 3 months, and yes, there may be lenders who will allow you to purchase with funds in your account less than 3 months.

Q. I am a member of the Defence, and have special rebates available.  Do you have an Defence lenders?

Yes we do, and we are aware of the rebates available to you, even if you have retired and receive a pension.

 

First Home Owners

Q: How much deposit do I need?

Usually 5 – 10% of the loan, depending upon the lender, and your circumstances

Q: What if I don’t have a deposit?

Contact us to discuss your options, as there are solutions out there

Q: The Real Estate Agent has asked for a deposit and wants me to sign a Contract of Sale.  What should I do?

Speak with us first for a preapproved loan, so we can guide you through the steps to making an offer on a property.  Take the stress out of the process by speaking with us, so we can act in your interests.

Real Estate agents act in the interest of the vendor (seller), not you as the buyer.

Q: How much is the First Home Owners Grant?

This differs from state to state, with Queensland residents eligible for $20,000 for new constructions until 30th June 2017

Q: What other costs do I have to pay?

Stamp Duty may be waived for a First Home Owner (government duties still apply).  Each state is different for stamp duty, and concessions for first home owners

Legal fees can be $1000 - $2000, so please shop around for the service.

Application fees and valuation fees usually apply from the lenders, and settlement fees from the lenders legal department.  Each fee differs from lender to lender – with total fees approximately $1,500

Building and pest inspections can cost about $600, so check with a few providers for an estimate.

Mortgage insurance is applicable to all loans over 80% of the value of the home.  This figure will differ from lender to lender.

Building Insurance will be required upon formal approval of your loan and this figure will be affected by the location, condition, and other factors.

Moving costs and rates for the property will be other considerations.

Q: I have a default/bankruptcy.  Will I ever get a loan?

The short answer is yes it is possible.  There will be restrictions for your loan, but this is based on your own individual circumstances

 

Investment Purchase

Q: What are the costs involved with an investment property?

You will need a deposit of approximately 10%, plus the stamp duty.  The stamp duty will differ from state to state.  Legal fees will also apply, and mortgage insurance, if the loan is more than 80% of the loan. 

Building insurance will apply, as will tenants insurance.

Management fees will also be a cost to you, as an investor.

Land tax may be applicable, depending upon the current legislation.


Q: Can you calculate if the property will be negative geared, neutral or positive geared?

We have access to software to help establish the costs of your property, and how it will impact your current financial situation.  This is very beneficial if you are in receipt of payments which are impacted by the gearing.

Q: I work fulltime, my wife is at home with the family.  Is there a way we can structure the home loan to make the most of the negative gearing rules?

Yes, we can structure the loan to be tax effective, depending upon if the property is negative geared, neutral, or positive geared.

 

Refinancing Your Current Loan

Q: Can I refinance my car debt and personal loan?

This is possible, and will rely upon your current home loan and the debts you would like to pay out

Q: I have renovations that I need to complete.  Can I access the funds?

Renovations can be costly.  We need to establish whether the loan will be a construction loan, or if you can access funds from your home

Q: I would like to rent out my house in a few months.  Can I choose a loan product which suits?

Yes, we can look at this situation and ensure your loan is tax effective

Q: My financial situation has changed dramatically.  What is my maximum borrowing?

All income will be used to assess your maximum borrowing capacity including PAYG income, centrelink, child support, investment income, pensions.

Q: I have late payments on my home loan but need to pay out some debts.  Is this possible?

Yes this is possible, and will rely upon the value of your home plus your home loan and debts to be paid out

Q: I’ve decided to be self-employed.  Can you help me with the setup costs?

We need to establish the costs for finance and would recommend you also see your accountant for advice

 

Investing with Self Managed Superannuation – Residential Property

Q: Can I buy a property overseas?

Currently, you are able to invest in property overseas

Q: How much deposit do I need to provide?

You will need to provide a minimum of 20% - 25% deposit based on current legislation.  This will rely upon the structure of your fund

Q: Are there any other costs?

You will need to pay for the application fee, the stamp duty, valuation and legal fees.

As an investment property, your other costs would be building & contents insurance, tenants insurance, management fees.

Costs to change your trust to allow for the purchase of property may be applicable.

Compliance costs for your Self-Managed Superannuation Fund would also apply.