Buying a home is the biggest purchase in most people's lives. Getting the right loan can save you thousands of dollars. Reviewing the conditions of that loan is equally important in an ever changing market. What was the best loan for you initially may have been superceded.
At MFL our experienced team can help make those assessments. We assess your needs and then represent you in negotiations with lenders. We have more than 60 property lenders competing for your business and will match you to one of the hundreds of loans we can access.
How much does this service cost?
This service is free to you as the lender pays us for introducing your business to them. This means you get the benefit of an independent service and advice at the same cost as going directly to the bank.
If you are researching your options come and speak to us at MFL or give us a call and we can provide you with a free fact file on:
How much can I afford to borrow?
Each lender, although using different criteria, is trying to determine how much you can afford in loan repayments. The higher the repayments you can afford the more they will let you borrow.
Our Home Borrowing Power calculator gives you a good indication of how much you can afford to borrow.
If you require more than the amount indicated in the calculator please come in and see us. With more than 60 lenders to choose from we'll find a lender that meets your needs.
How do I know if I can afford the repayments?
First you should determine how much you wish to borrow and the weekly repayments on this amount. Then, simulate repaying this amount from your weekly budget.
Here's an example:
Proposed loan repayments
$ 311 per week
Less: Existing rent/repayments
$ 202 per week
Payment into savings account
$ 109 per week
If you can save the difference between your existing and proposed repayments over a six month period, you will go a long way to proving to yourself and a prospective lender that you can afford the repayments on your new loan. This is also a good strategy for saving your deposit.
How much deposit will I need?
You can get a loan with a deposit as small as 3-5% of the purchase price plus around 5-6% to cover legal fees, government duties and mortgage insurance.
However, it's generally preferable to have a deposit of 10-20% to avoid mortgage insurance or at least keep it to a minimum.
What is mortgage insurance?
Mortgage insurance covers the lender if you are unable to repay your loan. This is generally charged when you borrow over 80% of the property's value.
How much stamp duty will I have to pay when I purchase my property?
This depends on the purchase price of your property. Check out our stamp duty calculator to find out more.
How long before my application is approved?
Generally within 48 hours.
Can I borrow against my property for other purposes?
Yes, you can borrow up to 80% of the value of your property or up to 95% with mortgage insurance. This means if your property has increased in value, or you have repaid part of your loan you may be able to access funds for other purposes such as investment or personal use.
