There are no restrictions on extra repayments applied to variable rate loan portion. Capped to $20,000 per year against a fixed rate portion.
Not at all. You can continue your loan with both portions reverting back to a variable interest rate, however you may not receive the same benefits that are available through Toggle.
No, it is free assuming the $20,000 cap is always observed.
No fees for life of loan
You have the option to fix for 1 to 5 years initially, and then reapply for another fixed loan period later.
Our Construction loan allows you to make interest-only mortgage payments for your land purchase & during construction. You will also make interest only payments during your construction. Here is how the rest of the process will look with our loan:
This is best left to the professionals. Depending upon the extent of the changes you’d like to make to your home, you should consult with an architect, a reputable builder and your mortgage broker. Most importantly, determine what your budget will be before doing anything else. They can help you estimate the renovation cost per square meter for homes in your area.
This might be the first question you should ask yourself. You may live in a heritage listed property, requiring council approval before you can make any improvements. An architect or builder can help you determine if you can make the changes, you’ve been dreaming about.
Your decision will usually depend on which option is more cost effective. You may wish to renovate because you love your neighbourhood and your chosen school. Yet, you don’t want to put so much money into a renovation for fear of over capitalisation. Moving to a new location brings its own set of issues. Best to consult with a professional property consultant.
Equity is the difference between the market value of your home and the balance of your loan. For example, if your home is valued at $600,000 and your loan balance is $300,000, then you have $300,000 in equity. This equity can be freed up by refinancing your home loan to do a number of things, including investing in more real estate, helping someone you love become a homeowner, or renovating your property. You can only unlock equity by refinancing to another home loan.
No, we offer assisted property investment solutions where we find the investment properties for you and perform the necessary due diligence on your behalf. As part of the service you are provided with a detailed report on the chosen property which includes:
Of course. We offer a broad range of home loans that cater to many different needs, including those who are self-employed.
If you are self-employed, you will need to provide the following information when you apply online:
You may also be required to provide:
Low Doc stands for Low Documentation, and these loans can benefit those who don’t have access to the typical level of information banks and lenders require. If you are a business owner, freelancer or contractor, you may not be able to provide the proof of income or employment history requested. Your income may be irregular, but it may still be high and stable enough to make the required repayments. Find out more about Low Doc home loans here.
Low doc loans can sometimes attract higher interest rates, given the potentially higher risks to banks and lenders. While interest rates can be higher at the beginning, banks and lenders may reduce the rate once you have shown over a certain period that you are able to successfully and consistently make repayments
Positive gearing means that the income generated from the investment property is higher than the expenses. Negative gearing is the reverse: where the cost of ownership is higher than the income generated. However, in this situation, you will look for appreciation in the property’s value over time.
Advantages:
Positive Gearing
Negative Gearing
Disadvantages:
Positive Gearing
Negative Gearing
We require every applicant to pay their application fee, but some of our loans include a refund of this fee upon settlement.
Finding the loan amount you want when you are refinancing can come down to the equity you have in your existing home. If you are looking to refinance to find a lower rate or better features, then the process is relatively simple. If you are looking to borrow more money, there are a few other things to think about, most importantly, the equity in your property.
As always, doing research is important: by keeping an eye on current market loans, the economic environment and your family’s needs, you can determine whether your current loan is doing right by you. You could always request a free home loan health check to see if we can offer you a better loan.
Below is a list of typical fees that may apply to a home loan of $350K. However, there are No Fee Home Loans that eliminates a large number of these fees.
Mortgage Street NO FEE Home Loan
Savings based on a $350K loan
Depending on how much your guarantor is prepared to pledge, you may be able to borrow 100% of the purchase price of your property, or even 110% to help you cover the associated costs of buying a home.
Yes, with a guarantor to back you, you won’t need to save for a deposit, something most banks or lenders require with modern mortgages.
A close relative with enough equity in their home can pledge a percentage of the value of your new home to act as your deposit. While this means you don’t need to save for the initial lump sum or pay LMI if the guarantee is above 20%, it does mean your relative’s home is put up as collateral should you default on your loan.
Ideally, you will be able to sell your current property close to the time when you purchase a second home. Bridging loans are intended to be short term solutions to get you through that period in between buying and selling. Typically, bridging loans are six-month loans. For new construction, loans may extend to twelve months.
No! Once you’ve applied, you will discuss your options with your Lending Specialist, who will review your requirements and explore every avenue open to you. If you want to familiarise yourself with the types of loans we offer, click here.
Applying for multiple conditional or pre-approvals can harm your credit score. One enquiry in itself is not a bad thing, but numerous enquiries over a short period can be – multiple hard enquiries may suggest financial stress to a lender. Conditional approvals should not form part of your research and comparison. Instead, you should only apply for a home loan conditional or pre-approval once you have done your research and decided on a suitable lender.
Conditional approvals are offered before you begin looking for a property, giving you a good idea of how much you can afford. You can then put a conditional offer on a property to secure it, before moving forward with your application with credit checks, valuations and other assessments. To be offered pre-approval, you will have already found the property you want to purchase, and have had it valued. Pre-approval is based on both your finances and the property itself, showing the lender is happy to finance the loan amount on the particular property.
As soon as you have correctly signed all legal documents and send them back, we can begin your settlement process. During the settlement process, your legal representatives will ensure all clauses in your contracts are being met and get all required documents ready to close the sale. On your agreed settlement date, your legal representative and the legal representative of the seller will take care of all matters relating to settlement, such as registering the title of the property and paying stamp duty. After this is taken care of, you are now able to move into your new home, start your new build process, cash out equity from your loan, or benefit from a lower rate home loan – whatever your reason for your home loan, it’s now complete and ready to enjoy.
Conditional approval is a confirmation from Mortgage Street that, on the basis that all required information provided is factually correct, you will be given approval subject to various conditions like successful credit checks. With conditional approval, you’ll be ready to put an offer on a property as soon as you find the perfect match.
Pre-approval is the confirmation from Mortgage Street that, now that you have had a valuation on the property you wish to purchase, and we have all required information from you, provided final checks are successful, you can proceed with making an offer with our financial backing.
Your online statement is the same as what is printed and posted to you, and are equally important. Access your statements all in one place and print out the ones you need at any time and submit them as supporting documents with confidence.
You will receive an email notification when your next statement is available to view through Internet Banking.
All electronic communication will be sent to the email address we have on your personal file. Please ensure this is current so that you never miss out on any email notifications and keep us updated of any change in email address.
Just log on to Internet Banking and select your Account and in the menu bar on the left click on ‘View Statements’. While you’re here, you can also view past statements, save a copy to your desktop or take a print out when you need one.
Generally, yes. You can add the stamp duty expense on to the principal amount of your loan. The stamp duty will be paid out of the cash you use as a down-payment on your loan. The amount of stamp duty you owe varies by state and by the value of your home.
Yes. You can use the equity in your current property to help you purchase an investment property. Even if you have a mortgage on the property, you will likely have enough equity to purchase an investment property. Equity is the value of the difference between what your property is worth and what your mortgage loan is. For example, if you have a property valued at $900,000 with a mortgage of $700,000, you have $200,000 worth of equity. You may be able to borrow up to a certain percent of the equity to use toward investing in another property. Your home equity and anticipated rental income can help you buy another investment property sooner. Below is an example of how an equity home loan with an interest-only line of credit facility uses capitalised interest as an investment strategy: If you currently have a home loan for $300,000 and your house is worth $550,000 you will have equity of $250,000 which you can use toward the purchase of your investment property. To avoid Lenders Mortgage Insurance (LMI) you will want to keep your Loan to Value Ratio below 80%. Therefore 80% of $550,000 equates to $440,000, less the $300,000 you currently owe leaves you with $140,000 to put toward your investment property.
Generally speaking, a deposit of 20% of the value of the property will save you from incurring additional fees such as Lenders Mortgage Insurance. Some lenders will let you borrow up to 95% of the purchase price and then let you borrow the cost of the Lenders Mortgage Insurance on top of that. Alternatively, if you don’t have a deposit, you can borrow up to 100% of the property’s purchase price, in two ways:
The mortgage registration fee varies from state to state. Generally, mortgage registration fees can be found on each state’s or territory’s website. If I am unemployed but have rental income is there any way to get a home loan? If rental income is your only source of income, it is likely that a lender will require an additional source of income. Simply being unemployed does not disqualify you from obtaining a mortgage. Having income from rental property will help make qualifying for a mortgage a bit easier.
This means that a quick check on your serviceability of a loan has been done and it is calculated that you should be able to make mortgage repayments on the amount you have been pre approved for. However, it is not binding and cannot be used to make an offer on a property. It is important to get a full or unconditional approval before proceeding with any property purchase. This involves completing a home loan application and providing all the necessary supporting documentation. (See our home loan application checklist)
Home loan are the funds borrowed from a financial institution on interest for purchasing a new property/plot/construction/upgrading a property. It is a long term loan with tenor up to 20 years depending on the age of the applicant. The loan is repaid with EMI every month. The property is taken as a security by the financing company for the loan being provided and original property documents are held with the financer.
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Yes, but this doesn’t mean you have to switch lender. You can refinance to another home loan that allows equity release, and ensure you get a great deal in the current market!
Call us on 133 144 for a detailed and tailor made property investment strategy.
Our switching mortgage calculator can indicate what you may be able to save by refinancing. For accuracy, you should be aware of any ongoing fees and charges over the life of your loan – take a look at your loan’s comparison rate compared to your interest rate to get an idea of how much you pay. There can be application and legal fees associated with taking out a new loan.
Hero Housing Loan is 30 years for salaried professionals and 20 years for self-employed professionals
