Purchasing a property, particularly for first-time buyers, is often an exhilarating experience. However, navigating through the mortgage options available today can swiftly transform excitement into stress. These options cater to various types of borrowers, including first home buyers, owner-occupiers, property investors, individuals seeking to refinance, or those interested in interest-only repayments or products with an offset account.
At Lowe Property Finance, our commitment extends far beyond merely facilitating the home loan process. We’ll provide you with an in-depth comprehension of every facet involved. Our dedicated experts invest ample time in explaining the essential requirements for securing a home loan, from determining the optimal deposit amount, to shedding light on critical aspects such as lenders mortgage insurance (LMI). By entrusting us with the complexities, you’ll gain the invaluable peace of mind to focus your energy towards exploring and discovering the perfect property that resonates with your long-term goals and aspirations.
What do I need to supply to apply for a home loan?
- Application form
- Proof of income (Either: Tax Returns, Bank Statements, Financials, Payslips, Employment Contract)
- ID
- Credit check authorisation
How much deposit do I need?
Aiming for a deposit of 20% is advisable, although the minimum requirement stands at 10%. However, if you’re borrowing over 80% of the property value, Lenders’ Mortgage Insurance becomes necessary.
What is Lenders Mortgage Insurance?
Lenders Mortgage Insurance (LMI) serves to mitigate the risk for lenders when extending loans to borrowers who cannot afford a 20% deposit. Consequently, borrowers have lesser equity in their homes upon purchase, necessitating the need for insurance coverage.
Saving history and credit rating
Demonstrating your ability to manage home loan repayments is crucial, and saving for a deposit serves as a tangible indicator of financial responsibility. A period of three months or more of consistent saving reflects positively on your financial discipline.
Moreover, lenders assess your credit rating, which hinges on your borrowing and repayment history, along with the frequency of credit enquiries. Numerous credit reporting agencies offer online platforms for you to check your rating comprehensively.
