Financing Home Loans

An Easy-To-Understand Explanations of Australian Home Loans And How To Find Great Financing Agreement Terms And Conditions

Australian home loans are highly, highly prevalent in the colloquially-named Land Down Under. Homes are undoubtedly one of the most expensive purchases individuals and families will make in their entire lifetimes, exceeding that of their vehicles – at least, most vehicles – medical bills, food, water, utilities, and home improvements onto those places of residence. Australian home loans are taken out so often because people in Australia, just like people across the remainder of our beloved blue-and-green planet, typically can’t afford to buy houses with cash, instead opting to spread the cost of their financed living spaces over long periods of time.

While most people know what mortgages are, having heard the name from friends, family members, television, books, or the Internet, few people are familiar with the ins and outs, the nuances, the nitty gritty details, and even the basic functional concepts of Australian home loans. Let’s explain exactly what Australian home loans are, some interesting statistics about them, and how to sign financing agreements with terms and conditions working in your favor, not the lenders.

In 2017, Australian Home Loans Rates at Loans.com.au cost a whopping 376,000 dollars, on average, according to statistics published by the Australian Bureau of Statistics from the researched period of June of 2017. For people who bought homes for the first times in their lives, the average loan was slightly lower, although still outrageously expensive, at $317,000, total dollar value minus that of lenders’ fees, taxes, and other amounts required to obtain any of the many Australian home loans.

Thankfully for the people of the only continent with just one country – Australia, for those who are geographically challenged – only 13% of first-time home buyers took out Australian home loans for their first home purchases. However, the average cost of these Australian home loans taken out by those who have no experience in purchasing homes, evaluating them, or otherwise preparing themselves for decades of mortgage debt for slightly more than a place to live, was $363,650. This is up significantly from 2012, for example, when the average first-time home buyers’ price was $298,608.

Aren’t those numbers exorbitantly high? There’s not any debate about that. Let’s dig into several tips for lowering the amount of money you’ll pay on home loans in the Land Down Under, applicable to literally every case of Aussies looking for houses to settle into.

Get with a financial advisor to discuss the maximum limit of home you can afford. Next, ask what financial information you should prepare to show to lenders and real estate agents. This usually includes proof of income from the past few months, bank account balances, and background checks.

Visit multiple lenders, rather than settling for the first one you visit, and discuss home loan options with them. Furthermore, visit lenders prior to shopping for homes, as a large chunk of real estate agents maintain deals with banks in agreement to send all clients interested in financing homes their way, with agents themselves earning a small chunk of money from each sale.

Australian Home Loans

Australian Home Loans

It can be difficult to get approved for Australian home loans. Fortunately, there are things that you can do in order to get the home of your dreams. There are several steps that you will need to take in order to get approved for one of the Australian home loans.

Improve Your Credit ScoreThe higher your credit score is, the more likely you are to get approved for one of the Australian home loans. Your credit score is an indication of your ability to pay bills. If you do not have a high credit score, then there are things that you can do in order to improve it.Paying your bills on time is one of the key things that you can do to boost your credit score. Your payment history is one of the things that affects your credit score. You will also need to pay down your existing debts. Furthermore, if you have past-due accounts on your credit report, then you will need to pay them off.

Get a Co-Signer

It is easier to get approved for one of the Australian Home Loans by Loans.com.au if you have a co-signer. A co-signer may be needed if your credit score is not high. You may also need a co-signer if your income does not meet lender requirements. A co-signer is someone who will be held responsible if you do not make the payments. This also means that the co-signer’s credit score will be affected if the payments are not made.

Compare Lenders

There are several lenders that offer Australian home loans. Every lender has its own set of requirements. That is why it is important to compare lenders. Comparing lenders will not only increase your chances of getting approved for a loan, but it will also allow you to get a loan for a better rate.

Choose a Less Expensive Property

There is typically a cap placed on Australian home loans. That is why you may be able to get approved for a loan for a lesser amount. You may have to choose a less expensive property.

High Down Payment

Your down payment is the amount that you will have to pay before you move into the home. Your down payment should be at least 20 percent of what the loan is. It is easier to get approved for Australian home loans when you make a high down payment. This makes you less of a risk to the lender.

Financial Co-operative Dispute Resolution Scheme

The Financial Co-operative Dispute Resolution Scheme (FCDRS) is an external dispute resolution scheme, approved by the Australian Securities and Investments Commission (ASIC) according to the requirements of the Corporations Act 2001 and ASIC’s Policy Statement 139 (PS 139).

The FCDRS is designed to provide an effective and independent resolution of disputes between customers and Scheme participants in relation to financial products or services provided.