3 Things Australian Borrowers Need to Know Before Borrowing

Australian borrowers in an array of financial circumstances can find a mortgage to finance their home purchase. To dig a little deeper into the process, Mortgage Street offers three things that borrowers should know before applying.

The Right Mortgage Exists. Australians must borrow more to purchase their homes in 2022. Nonetheless, the right mortgage option exists for most borrowers. Conventional mortgages remain the traditional option. It requires a 20% deposit, full financial documentation, and a credit score of around 700 or above. Those who lack any of these requirements can apply for low doc, low deposit, bad credit, and guarantor mortgages. 

Gather Your Document Before Applying. It takes between four weeks to three months to complete the mortgage application process. Sometimes lenders will request updated versions of the financial documentation. To make the process run smoothly, gather your financial documents before applying. Then, keep the documentation organized in case the lender requests the latest payslips or bank statements. 

It’s Possible to Obtain Better Loan Terms with Refinancing. Let’s say a borrower qualifies for a bad credit mortgage that has a high-interest rate. Even though it does not have the best loan terms, it converts them from renters to homeowners. After a few years, homeowners can refinance their mortgage and obtain better terms. Moreover, it’s a great time to move a mortgage from a different lender to Mortgage Street. We provide competitive loan terms for clients of mortgage brokers. 

Australian borrowers who seek to purchase a home have several options at their disposal. A professional mortgage broker can provide additional information.