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Step 3: Find the RIGHT HOME LOAN
Consider important things like:
- Does the loan suit your long-term needs?
- Will you be able to meet your commitments if you reduce your working hours or salary?
- Are you planning to start a family? If you are, what financial impact will this have?
Home Loan Application & Requirements:
OK, now that you found the right home loan, the financial institution will need the following requirement along with the completed application form:
- 100 points ID (Passport / Birth Certificate = 70 points, Drivers Licence / RTA 18+ = 40 points, Medicare Card = 25…)
- Income Verification (2 most recent pay slips & last financial year PAYG Summary)
- Evidence of deposit - if your parents or family are assisting you with the purchase, they will need to complete a Stat Dec confirming that the gift is non-repayable. If you’re borrowing funds to cover the costs & deposit, we’ll simply need to know the amount of debt and will include the monthly commitment in the affordability calculations.
A home loan is likely to be a 25 to 30 year commitment for most people, so it’s not a decision to be taken lightly.
What to look for in a home loan:
- Ability to make additional repayments at no extra costs
- Ability to make repayments via direct debit, ATMs, Internet and phone banking service
- Ability to redraw funds at any time
- 100% mortgage offset facility, allowing you to offset funds in an account against your
home loan
- No annual or monthly account keeping fees
- Option of weekly, fortnightly & monthly repayment frequency
- Ability to re-fix your interest rate at no extra cost
 By talking to different institutions, you’be able to compare similar type home loans and find the right one for you. People who decide to apply for a home loan with more than one lender should be mindful of the fact that credit enquiries will appear on their credit reports for each individual application. Whilst this doesn’t have a big impact on the application, the lenders may ask for a written confirmation on whether the other loans proceeded further.
Right, now that you’ve collated all the requirements necessary for the initial loan assessment, you are ready to send your application to the chosen lender. You should then receive a written response (hopefully a Conditional Approval subject to a valuation) within no more than 48 hours.
OK, now that you’ve got your Conditional Approval, it’s time to go home hunting !!!
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