Determining which home loan product is right for your client depends on their financial situation and buyer status.
First Time Home Buyer
If your client is a first-time home buyer, they can borrow 105% of their property’s value as long as they utilise a guarantor loan. With other loans, they can borrow up to 95% of the property. Most first-time home buyers use guarantor loans because they have lower interest rates and don’t require a deposit. Your client may also qualify for the First Time Home Owners Grant, the First Home Loan Deposit Scheme, and other benefits offered by the state’s government.
Second Time Home Buyer
Second-time homebuyers can transfer their loan security from their current mortgage to their new home. They could also use the equity in their existing home as a downpayment on their new home. Fixed, variable, and split rate loans are available for your client.
First Time Investor
Most lenders allow first-time investors to borrow 85% of the property value as long as they meet specific guidelines. For example, most lenders require a 20% deposit, with sufficient genuine savings, a clean credit history, and a substantial income with stable employment. However, if your client is investing in a marketable property, they may be able to borrow 90%.
Experienced Property Investor
If your client is an experienced investor with a high net worth, there are many loan products available to them. The most common include professional packages, basic loans, lines of credit, and fixed rates. Popular features include interest-only, fixed-rate, line of credit, 100% offset, redraw, and extra repayments.
Refinancing for a Better Deal
If your client is interested in refinancing their current home loan with a new lender, you can help them shop around for a new lender by assisting them in comparing interest rates and loan features. Keep in mind, though, your client may have to pay some extra fees, such as borrowing costs, loan application fees, exit fees, break fees, etc. Low doc options may be available for your client if they are self-employed. They can refinance out of a bad credit loan, from a low doc loan to a full doc loan, and out of a variable rate loan.
Construction
If your client is a first-time home buyer, they may be able to apply part of their First Time Home Owners Grant to some of their construction loan. Fixed-rate construction loans, low doc construction loans, bad credit construction loans, and land equity construction loans are all available to your clients, depending on their financial situation.
When you try to help your client choose which home loan product is best for them, you need to consider their financial situation and their plans for the future. Mortgage Street can help get a complete picture and find the home loan that works best for them.