Home Loans Articles

What are some home equity loan alternatives?

Need cash fast but aren’t keen to take out an additional loan to dip into the equity you’ve paid into your mortgage? There are alternative options out there if you know where to look, some of which may charge little to no interest.

How to shop for a mortgage without hurting your credit

Buying a house is likely the biggest financial commitment you’ll make in life. So, it’s important to ensure you’ve got all your ducks in a row before applying for home loan pre-approval, to avoid negatively impacting your credit score.

How is mortgage interest calculated?

Home loans can seem complex and intimidating. This may be partly due to the massive sums of money involved, especially for buying property in Australia’s capital cities. It may also be partly due to the seemingly impenetrable maths involved in working out your interest charges and monthly repayments.

How long does pre-approval take? | RateCity

Without pre-approval, you will not know exactly how much you can afford to spend on a property. Let’s explore how long it takes to be pre-approved for a mortgage and look at the home loan journey in full.

Who pays the mortgage when separated?

Separation is a difficult process, which leaves many financial questions. One of the many questions may be “Who pays the mortgage when you separate?” 

Can a bank revoke a mortgage?

Buying a home can be a stressful process at the best of times. The last thing you need is for something to get in the way of your mortgage after it’s been approved.

Complaints against mortgage companies: What you need to know

The responsible lending criteria set by the Australian government means your lender has a responsibility to ensure that a credit product is suitable for you, and to take steps to verify your financial situation before approving your home loan application. But what if you received a home loan you’re now struggling to repay? 

Can you use rental income to qualify for a mortgage?

If you own an investment property and are thinking of buying another one, you may want to use the rental income you receive from your tenants to help pay for your next mortgage. However, not all mortgage lenders will take all of your rental income into account when assessing your mortgage application.

Can I get a second mortgage for a rental property?

If you’ve owned your home for long enough, you’re likely to have built some equity in it, giving you several options for financing your second home or rental property. For instance, you can leverage your home equity by refinancing your home loan for a higher amount, or take out a second mortgage using the same property as collateral. 

How to calculate the loan-to-value ratio for your home loan 

Understanding your loan-to-value ratio (LVR) is and how it impacts your mortgage is crucial to ensure you can stay on top of your home loan. Learn more about LVR and how to measure it. 

Can you change your mortgage broker, and is it a good idea?

Many Aussies have used a mortgage broker to help them get a home loan and guide them through the process. In doing so, some have had great experiences where they continue to use that broker for refinancing or purchasing an additional property. Others have not had great experiences, which have made them ask if they can switch mortgage brokers. 

Should I combine my first and second mortgages?

If you’ve taken out two mortgages on your property, you may want to look for ways to consolidate the first and second mortgage as this could help you save on interest.

Big banks vs small banks for mortgages

One of the first questions would-be borrowers face is which home loan provider to choose, and many may be wondering whether to opt for a big bank or a small bank for their mortgage. Let’s explore some of the advantages and risks of both.

How long does a valuation report take?

If you’re buying or selling a house, you may want to know how much the property is worth. A valuation report helps you get a number based on a professional evaluation. 

What is the difference between a real estate appraisal and evaluation?

There is a difference between an appraisal and an evaluation in real estate. You may need either when buying or selling a house, so find out what they mean.

How do mortgage companies verify income?

When you apply for a home loan, you’ll need to show the lender that you can comfortably afford the repayments. But how exactly do banks and mortgage lenders check your income and confirm that you earn enough for a mortgage?

Is a fixed or variable home loan better?

The best choice between a fixed or variable home loan interest rate may depend on your personal and financial situation, as well as your home loan goals. There are advantages and disadvantages to fixed and variable interest rates, which could affect the value that different home loans offer you.

Can I borrow money for stamp duty?

Stamp duty can be a significant cost to consider when buying a property. As well as your deposit and other fees and charges, stamp duty can add thousands of dollars to your upfront costs, depending on the value of the property. So it’s not surprising that some Australians look for alternative ways to manage this expense, such as borrowing money for stamp duty.