Mortgage Perth

Potential home owners looking for a mortgage Perth can choose from a wide range of options. The key is finding one that suits you and your personal circumstances. There are loans tailored to meet almost anyone, including first-home owners, property investors and people buying a second home.

Looking for a mortgage Perth? Consider these options:

Standard variable
Standard variable rate loans offer many extra features such as early repayments and redraw facilities. This is the attraction for borrowers needing a flexible mortgage in Perth. The interest rate on the loan can go up or down depending on changes in the housing market. The interest rate is usually higher on this loan, but the extra choices and flexibility outweighs the extra costs.

Basic variable
With less features than a standard variable rate loan, the basic variable loan often comes with a lower interest rate. This loan is one of the most basic loans on the market, and rates can often be up to 2% lower. If you do not need extra features then you can take advantage of the low rates on this loan. However, if you wanted other benefits, this loan will not offer the flexibility you need.

Fixed rate
By fixing the interest rate of your home loan for an agreed period of time, you can protect yourself against any interest rate increases, and you will also know exactly how much your repayment will be each month. However, should rates go down, your loan will still be at the same rate which may be higher than rates for a variable loan.

Equity home loan
Equity builds up as you make regular repayments and reduce the principle loan amount, or if your property increases in value. Lenders take into account the equity you have on your current property, and use this to offer a new loan on the second home, enabling you to have the new mortgage Perth.

Low-doc
These loans are designed to enable borrowers who cannot provide the usual amount of documentation needed for a regular mortgage in Perth. Self-employed or casual workers typically fall into this category, where providing proof of income may be harder. You need to sign a statuary declaration of your income, and this is accepted instead of proof of income. Usually the interest rate will be higher for a low-doc loan than a regular loan, however, the more deposit you can provide, the lower the rate becomes.

Bridging finance
If you find a new home before your current home is sold, you may find you cannot finance the purchase. However, with a bridging loan, the lender agrees to finance the new property until your current home is sold. This means that the lender is taking on both properties and you now have two loans. When your current home sells, you use this to pay for the bridging loan. Whilst a bridging loan can be a great help in this situation, make sure you can afford the repayments on both loans, as it may take weeks or months to sell your current property.

No-deposit
No deposit home loans allow you to purchase a property without the need for the traditional 10% deposit. The lender will lend 100% of the property price, which will mean that you owe more than if you had put a deposit down. This is likely to mean you end up paying more interest over the life of the loan, and it may take you longer to pay off the loan. But for first home owners struggling to save a deposit, or for second-home buyers already directing their income into a mortgage, these loans can be a good option. Talk to your local Australian mortgage broker about which banks still offer no-deposit home loans.

Interest only
Some borrowers choose to take out a loan and only pay the interest. This is particularly useful for investors or when home-owners wish to carry out home renovations on their property. As you are only paying interest on the and not paying the principal, it may take longer to pay off the loan. However, these loans are normally only considered short term, usually around five years, so as a short term strategy; interest only loans can be an effective way to manage your finances.

Resource Box/ About author: Janey Mookhoek worth with Mortgage Brokers in Perth - battling the banks to get ahead in the mortgage rat race.

About the Author

Janey Mookhoek worth with Mortgage Brokers in Perth - battling the banks to get ahead in the mortgage rat race.