Getting a Home Loan
What Type of Loan is Right for You?
Whether you are a first home buyer, looking to upgrade or invest, or even getting your finances in order before you start shopping, getting a home loan that works for you will be a priority when the time comes. Melbourne home loan brokers Get A Loan offer their expertise at finding the right loan for you, no matter what your situation.
Get A Loan has access to over 30 lenders and credit providers, with hundreds of different home mortgage loans, which means there will be a solution to meet your goals and save you money.
Every borrower is different, and there are many types of home loans in Melbourne, each with their own details and inclusions. Our Get A Loan home loan brokers will help you by matching your borrowing requirements with the right loan product.
For instance:
- Is it property for home or investment?
- Is this your forever house or a stepping stone house?
- How quickly do you want to pay the loan off?
- Do you want certainty of repayments?
- Do you plan to invest in property in the future?
- Do you want to set a savings goal for your loan?
GET A LOAN can help you develop these goals and then meet them with the loan to save you money.
The first thing to do is fill out the form or call GET A LOAN today!
Borrower Types
Full Doc Home Loans
Full doc home mortgage loans represent the majority of residential loans applied for in Australia. They are the simplest of borrower types, and are applicable to borrowers looking to get a home loan who can readily evidence their income.
Borrowers can be individuals, companies or trusts.
Full Doc loans apply to borrowers who are either/or:
- PAYG Employees
- Self employed with generally 2 years* recent financials
The banks will ask you to prepare a large amount of financial paperwork to approve these loans. However, Get A Loan’s process is far easier, as our home loan brokers in Melbourne might only need the most recent years’ financials depending on the lender and your requirement.
Full Doc loans come with a variety of options, including rate discounts, inclusions, fee choices and a more streamlined application process.
Low Doc Home Loans
Are you self-employed, work casually or simply don’t have your financial information readily available? A Low Doc loan might be just for you.
Low Doc home mortgage loans offer a simpler application process for the self employed.
Low doc loans are suited to borrowers who need a home loan but may not be able to produce the same documentation requirements as the more traditional borrowers. Low doc loans have fewer financial requirements that help non-traditional workers get a home loan.
The home loan brokers at Get A Loan can assist you in determining whether you qualify for a Low Doc loan – simply fill out the form and a finance expert will be in contact.
If you’re refinancing or purchasing a home or investment property, you don’t have to be held back if your finances are not in perfect order.
We have helped many people in retail, consulting, accounting, developers, and tradesmen to obtain funding when they need it most through our low doc solutions.
SMSF Loans
Purchasing a property in your Self Managed Super Fund can have many advantages:
- You don’t use your own cash to service the debt
- Tax effective cash flow in retirement
- Use of leverage that has been previously unavailable
- No cash out of your own pocket for the deposit
- The ability to run your business from the property you purchase
Buying a property in your Self Managed Super Fund does have restrictions that you should be aware of before embarking on this strategy, as the costs for getting it wrong can be disastrous! Speak to one of the home loan brokers at Get A Loan today about the benefits of buying property and lending in a super fund.
First Home Owners
Buying your first home can be an exciting, but daunting process.
At Get A Loan, our home loan brokers in Melbourne can make it easier for you to get a home loan. We’ll help you every step of the way, including applying for government programs such as the First Home Owners Grant. We have a range of products through our panel of lenders and in some cases, can work through strategies where you may be able to borrow 100% of the value of the property without having to save a deposit.
Loan Types
Get A Loan can help with any type of home loan. Whether you are a first time home buyer or an experienced real estate investor, we have home loans in Melbourne to fit your needs.
Products Available for Loans
Our home loan brokers have access to over 30 lenders and hundreds of home mortgage loans. Whether you’re a PAYG, self-employed or casual employee, we have a solution for you.
In finding the right product for you, we study our panel of lenders. Using state-of-the-art software, we compare them and their products so we can find a home loan that suits you while saving you money in the long term.
Term Loans
Term loans are the type of loans that have a specific period. In most home loans, this is a 30 year period, and your monthly repayments are structured so that you will repay your home loan in that timeframe.
This is done through principle and interest repayments that are calculated based on the loan being fully repaid at the end of the specified period.
The longer the period, the lower your repayments will be each month; however you will pay more interest in the long run.
A term loan can begin with a fixed rate period, or an interest only period which follows with a variable loan where you pay principle and interest.
You also have the choice to pay more than the nominated monthly repayment. This means you can pay the loan down sooner and save interest in the long term, or use those funds as redraw at a later date.
Variable Rate Loans
Variable rates are the simplest and most widely used loans in Australia. Variable rate home mortgage loans fluctuate at the loan provider’s discretion, and will generally follow loosely with the RBA Cash Rate.
Variable rate loans offer the most flexibility when it comes to making additional repayments, paying loans down or refinancing them from one lender to another.
Variable rates can also be discounted depending on the loan type and loan product.
However, because variable rates can change quickly, it is important that you review your mortgage rate regularly. Contact us today for a review, because many lenders will not pass on great rates to existing borrowers that they are offering to new borrowers. As a result, it pays to have the help of Get A Loan to understand if your rate is working for you or for the bank.
Fixed Rate Loans
Fixed rate loans allow you to get a guaranteed rate for a period of time. It could be anything from one year to 10 years. The longer the loan period, the higher the rate.
Fixed rates are perfect for those who want certainty of repayments, especially if you are on a budget, or couldn’t sleep at night if you thought interest rates were going to go up.
Fixed rates however come with very high costs if you want to break them, so be mindful of the potential costs before using them.
The home loan brokers at Get A Loan can assist you in finding the right fixed rate to match your goals for your property, especially if you are not sure if you might move, sell or upgrade in the near future.
Mixed Loans
Perhaps going all fixed or all variable isn’t for you. Another option may be to fix a portion and go variable on the rest. This way you can have the flexibility of a variable loan, with the certainty of repayments from a fixed loan.
Speak with GET A LOAN today to find the best mix for your home loan.
Introductory / Honeymoon loans
Honeymoon loans are loans that generally have a large discount on interest rates for a short period at the beginning of the loan (normally 1-3 years) and then shift to a higher rate. These loans can be ideal for the budget conscious to help with repayments and cashflow in the early years.
Basic Loans
Basic loans are just as the name suggests, home loans without the bells and whistles. They contain the home loan and a transaction account. There are generally very few (if any) additional features (like credit cards and offset accounts) included. You will also likely pay an upfront fee and no ongoing fee.
These home mortgage loans are suited to those who might only decide to own a single property and want to focus on debt repayment or those who want a very simple product to maintain.
Professional Packages
A professional package is a package that gives discount advantages the more that you borrow. They also have other inclusions such as free credit cards and offset accounts, free changes to the loan and valuations. They are generally suited to property buyers who plan to own more than one property, or who have sophisticated finance setups that require additional accounts.
Alternatively, if you’re looking at getting a home loan that is larger in value, you might be applicable for a large discount to your interest rate. Therefore, these home loans can be suitable even for a single property owner.
Line of Credit
Line of Credit Loans have a set limit, and then let you spend to this limit (a little like a credit card).
The benefit is that Line of Credit loans have no determined length and you will only pay interest once you start using the funds. You can also convert them into a term loan where you can pay the principle.
These are very useful home loans for borrowers who are after cash that they can use for further investment or for quick access uses such as repairs or renovations.
Line of credits can also have the interest capitalised (continually building) which can also help with immediate cash flows and affordability.
Impaired loans
If you have had problems with your credit in the past, we have lenders available that can help. Get A Loan has lenders and products available that mean you don’t have to hold back your dream home due to a bad credit history. Getting a home loan need not be out of your reach!
Irrespective of bad credit history, GET A LOAN can still assist with finding you a loan to meet your needs. In some cases, these may come with additional conditions or a slightly higher interest rate.
Reverse Mortgage
If you are nearing, or have already reached retirement age, a reverse mortgage might be suitable for you. This type of loan allows borrowers to use the equity in their home as security. The loan principle never has to be paid back, as the bank will recoup the funds upon the sale of the property when the borrower either sells themselves or passes away.
The money can be either a line of credit, income stream or lump sum. However, interest rates can be a little higher for these type of home loans, so speak to GET A LOAN today if you want more information.