No matter you live in Sydney or Melbourne, a home is a basic requirement and a necessity for life. Sadly, no necessity is available free of cost. If you want to buy a home, you need a home loan. Dont think applying for residential financing is difficult. Its simple when you read this article. It includes answer to the most common questions asked by Australian home buyers.
1 - What Type of Residential Finance is available to you?
Today there are several types of loans in the field of residential finance.
Owner Occupied Residential Purchase
Residential Investment Purchase
First-Time Home Buyer
Renovations, Extensions and Construction Purposes
Refinance of your Existing Loan
Debt Consolidation of your Existing Home Loan Debts
Home-Equity/Cash Out purpose
Restructure your Home Loans with Current Lenders/Credit Providers
2 - What are Features of Residential Finance?
Each lender/credit provider offers different interest rates and finance/loan conditions. Residential Finance packages often incorporate many of the following options and features for you to consider:
Variable or Fixed Rate Loans
Interest Only or Principal & Interest Loans
Combination (Split Loans)
Line of Credit
Impaired Credit History
Redraw Option and Access Availability
3 - What is Home Equity/Cash Out? How can it benefit you?
A Home Equity/Cash Out can unlock relatively large amounts of money for borrowers who want to borrow against the value of their home or property. More and more Australian consumers are finding this type of finance arrangement to be very attractive. Such loan programs are very easy to qualify.
The concept of how Home Equity/Cash Out works for you is best explained by the following illustration. The illustration also assumes that you have an existing residential finance loan on your home or property:
The value of your home or property is valued at: $800,000
Less Your current home loan balance owing: $350,000
Your home equity amount is: $450,000
From the example illustrated above you can clearly see that you have $450,000 equity in your home or property, which you can use to:
Buy your second or third investment property
Invest in shares or managed funds
Renovate, remodel, or otherwise improve your existing home and property
Purchase vacant land and construct a new home on the vacant land
4 - Why Pre-Approval is better in Residential Finance?
With a pre-approval, you will have the peace of mind knowing that:
You have a clear picture of what your borrowing limits are
Your finance request has already been pre-approved and you will know the conditions of your pre-approval
You have the upper hand when negotiating the sale price with the vendor, real estate agents, etc.
5 - How to get Lower Rates on Residential Finance?
Getting lower rates on home loans is very simple. Take help of the internet. There are many online companies that provide residential finance opportunities. Because of heightened competition in the Australian financing market, lower interest rates are offered. Also, web companies offer faster approval because of their online nature of business.
So, these are the questions that often trouble other Aussie buyers. But, now that you have answers to them, finding an affordable Residential Financing will be easy for you.
All the Best!
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Singh Finance understands Australian residential finance market completely. Its professionally qualified and expert finance brokers will find you the perfect Residential Finance solution package at low rates. Contact us today and make an appointment to have an obligation free assessment.
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