Which loans suits you

First Home Buyer
Since this will be your first home, we will take you through the buying process one step at a time. No suprises. We'll even handle the First Home Owner's Grant application for you.

Click here for more information about the First Home Owner's Grant

Subsequent Home Buyer
Upgrade your existing home or purchase an investment property. We'll simplify the process by visiting you at your convenience, then take the loan application through to settlement with a minimum of fuss.

Equity Holder

Over time you will have built up some equity in your existing home. You may be able to borrow against this equity for business or investment funding.

The Right Loan

Here at Better Planning, we offer all major loan types. To find the right loan for your needs and circumstances, we take the following into account:

which category applies to you
loan amount required
your income and expenses
your status
your ability to service the loan
assets and liabilities
your deposit
your lifestyle
maximum percentage of the property value allowable
loan period
repayment type - principal and interest, or interest only
frequency of repayments - weekly, fortnightly, monthly
whether extra repayments are allowable
early payout option
redraw facility
conversion to a fixed loan
ability to split the loan (separate accounts)
combination of fixed and variable interest rates
mortgage insurance payable
accessory costs

Your Status
Apart from financial details, lenders require a significant amount of personal information from you before they will consider your loan application. In most circumstances, they will want to know:

whether you are a resident of Australia
how long you have lived at your current address
if you are self-employed
if you have a partner
if your partner is employed
how many dependent children you have
if you have ever been bankrupt
how many credit cards you own

Your Deposit
Lenders vary in the amount they expect a borrower to have as a deposit. Some accept 5%, some require up to 20%. Obviously, the bigger your deposit, the better your chances of securing the home loan.

Most banks will insist on mortgage insurance if the deposit is less than 20% of the property's purchase price and this can add a substantial amount to the true cost of the home.
Mortgage insurance is taken out to cover the lender if you fail to make the necessary loan repayments. Be aware that this type of insurance does not cover you - only the lender.

Interest Rates
It's hard to know whether to lock in an interest rate or not. A fixed rate gives you certainty over repayment amounts for the fixed term. A variable rate, on the other hand, can cut your costs
and give you added flexibility.

With fixed interest loans, the rate is usually set for 1 to 5 years. At the end of the fixed term, the loan reverts to a variable rate or you can renegotiate an additional fixed term.
By locking in the interest rate, you are protected against the risk of a rate rise over the term. You must remember, however, that fixed loans can be expensive to break and
may attract a higher interest rate than a variable loan.

Interest rates are cyclical - they occasionally fall, but mostly rise. The possibility of interest rate rises should always be taken into account when considering taking out a variable loan,
and when budget planning.
Borrowers should play it safe by budgeting for repayments around 2% higher than the required repayment figure. This will allow extra repayments to be made until a rate increase is implemented.

There are 2 types of variable loan - basic and standard. Basic variable loans are the 'no-frills' version, offering a low rate and fewer features.
Standard variable loans offer accelerated payment options, offset,
redraw, split loan capacity, variable repayment schedules and portability.

Many borrowers find splitting their loan with half at a variable rate and half at a fixed rate enables them to hedge their bets - to get the advantage of early repayments, redraw and mortgage offset, while not
exposing all of their loan to interest rate fluctuations.

Accessory Costs
Borrowing money to purchase property involves much more than just applying for the price of the property less your deposit.
There are many more charges payable with property transactions and these must be accounted for from the beginning. Consider the following:

LENDER'S FEES
Most lenders charge a one-off establishment fee on new home loans. These vary from lender to lender depending on the type of loan applied for but
range between $600 to $1000 on average.
LOAN ADMINISTRATION FEE - may be a small monthly fee.
MORTGAGE REGISTRATION FEE
PENALTY COSTS - can apply for early loan repayment.
MORTGAGE RELEASE FEES
BUIDING INSPECTION - optional but highly recommended.
PEST INSPECTION - optional but highly recommended.
STRATA REPORT - if unit or apartment.
BANK INSPECTION - for bank's property valuation.
INDEPENDENT PROPERTY VALUATION - unbiased market value.
STAMP DUTY - on the property, the loan, on mortgage insurance and mortgage release.
LEGAL COSTS - including solicitor's check over contract; search fees; registration of title.
INSURANCE - mortgage insurance; mortgage protection insurance; life insurance.
MOVING COSTS
REAL ESTATE AGENT'S FEES

GST
The Goods and Services Tax came into effect on 1st July 2000 and replaced a number of indirect taxes. GST is a broad-based tax of 10% on most goods and services.
GST applies in some instances, but not all:

purchase of a new home attracts GST
the sale of an existing home is GST exempt
GST is payable on building costs, renovations, and maintenance.
GST is payable on services provided by agents, tradesmen, solicitors, and conveyancers.
most building supplies and services are subject to GST.

Basic Home Loans

This is the no-frills home loan generally set at the lowest interest rate.

Standard Home Loans

A loan offering more options and flexibility.

Lines of Credit

Perfect for those wanting greater control over their finances. Ideal for debt reduction, investments, and small business.

Low Document Loans

Great for the self-employeds or the credit-impaired. These loans don't require the usual two year's income and tax history.

Non-Conforming Loans

Ideal for those with credit issues.

Construction Loans

Suitable for those wishing to build.

Commercial Loans

Commercial loans are for the purchase, or construction of commercial property. Refinancing of an existing commercial loan can also be arranged.

Save Much More Than Money

As agents for Donation Home Loans Pty Ltd, part of our ongoing commitment to you and the community includes donating 50% of any trail commissions received to the non-profit
organisation of your choice for the life of your loan.

Call for a friendly chat or send us an email. We'd love to hear from you.