Home Loans Perth

PROPERTY PURCHASE – CONSTRUCTION – REFINANCE – INVESTMENT – LAND – FIRST HOME BUYERS – DEPOSIT BONDS – BRIDGING – SMSF

Buying a property in Perth is a hot topic, involving some specific terms such as home loan product, mortgage, or interest rates. For the majority of people who decide to buy a new home in Perth, home loans are the only viable options. Nevertheless, the Perth property market is an accessible one, with a generous home loan market. 

The high rental costs in Perth made many people consider buying a property in WA sunny capital. Building a house in an exquisite suburb of Perth will also require looking into the possibility of applying for home loans.

Types of home loans

In case you wonder what home loans are, these represent an amount of money that an individual borrows from a financial institution. Depending on the nature of the loan, borrowers have to repay the loan amount within 25 years or 30 years. Regular payments are specifically designed to pay off the loan over the term described in the contract. Sure, depending on the credit category there can be extra repayments involved also. 

There are several categories of home loan options in Australia, listed by the interest rate or purpose. 

The home loans by interest are the most common among homeowners and include the following types:

Owner-occupier home loan

The best solution for clients that want to purchase their dream home.

Options available: Variable, Fixed, Interest Only, Guarantor Loans, Low Doc Loans, Non-Conforming Loans.

Contact Valor Finance to discuss the best solution available for you.

First home buyer loan

This type of loan is designed especially for those willing to buy their first home. First home buyer loans can be variable loans or fixed-rate. Plus, the Australian government assistance comes as the First Home Owner Grant (FHOG). Moreover, you might be eligible for stamp duty fee waivers up to $10.000.

Refinance Loans

One of the most common reasons people choose to refinance on their mortgage is to secure a lower interest rate, usually from another lender. This can better assist you in paying off your home loan sooner, potentially saving you thousands of dollars in the long run. Other reasons include a desire to change the type of loan, or you may wish to release some equity to your existing or investment property. Act now and find out more about affordable Refinance Loans in Perth.

Investment Property

An investment property is a popular wealth creation tool for providing you with potential capital growth and rental income. As you look to invest in your future, let our experienced mortgage consultants at Valor Finance you by structuring a solution that is tailor-made for you.

Construction home loan

In case you want to build your home from scratch, this is the perfect loan for you. Lenders will make progress payments throughout the construction of your house.

A construction loan is usually interest only during the construction phase and then reverts to a principal and interest loan.

Consolidate Debts

Many people choose to use their home loan for debt consolidation because it offers a very low interest rate. If you’re struggling with multiple debts like a personal loan, a car loan (best Perth car finance deals) and perhaps credit card balances, consolidating your debts will in most cases to reduce your overall monthly repayments and allow fewer repayments.

It is worth noting however that debt consolidation can also turn a short-term debt like a personal loan into a much longer term debt (your home loan.) Unless you aim to make extra repayments when possible, you can end up paying more in interest payments over the life of the loan.

Renovating

If your family is growing, or you need extra packing space as the garage can’t seem to keep up … the team at Valor will help you to organize a loan to finance your renovations or extensions but to also do a financial health check on your current situation to ensure you have the most suitable loan to fit your changing needs. Getting a renovation loan specialist involved in the planning for your renovation and to ensure you can successfully complete your project and start enjoying it – without running dry with money along the way. Use your equity in your home and top up the loan you have or re-draw on additional historical payments.

Upgrading or Planning a Move?

You’ve found that dream property or ideal block of land to build your next home, and want to move quickly without delay or added stress. A relocation loan enables you to purchase your new property, or start construction on your next build, before you sell you existing home. This provides you with the breathing space to make any important decisions.

Self-Managed Super Funds

Property investing through your Self Managed Superannuation Fund (SMSF) can be a great way to create greater capital growth and rental income for you in the future. Superannuation legislation allows use of your SMSF to borrow for investment into residential or commercial property, creating a tax effective structure for you to create greater future wealth and to diversify your super investment portfolio, income from the SMSF, including capital gains, are taxed at concessional rates, so you can end up saving more money for your retirement.

Reverse Mortgage Loans

A reverse mortgage home loan is a credit product type of equity release product (ERP), where your loan is based on how much you own of your home (the equity). In a reverse mortgage, the bank lends you a portion of the house’s value, using the house as security. There is no requirement to repay either the capital or interest on the reverse mortgage during the time that you live in the property. Find out more about Reverse Mortgages by getting in touch with the best Mortgage Brokers in Perth. You can also find our mortgage brokers in Melbourne, Sydney, and Brisbane.

Home Loans

What is the difference between a home loan and a mortgage?

Although both terms are used synonymously when it comes to buying real estate properties, there are some slight differences between these two terms. 

A home loan is a relationship between a borrower and a lender, a credit product used for purchasing real estate. 

The mortgage represents a form of security interest for the home loan. When you buy a property, this is owned by you. However, if you do not respect the loan contract terms like not making your loan repayments, the lender has the legal right to collect their interest.

Important to know is that your mortgage will be a proportion of the lender’s valuation of the house you are purchasing. 

For a better understanding of the mortgage and how it works, it is recommended to use the services of a mortgage broker. 

How do I get a home loan?

When you apply for a mortgage, you must meet several requirements. Once you settle for a property, the lenders will start looking into your financial situation.

They will check your monthly income, how long have you had your current job, your savings, and the status of other credits you may have. 

To be able to apply for home loans you will also need a cash deposit.

Generally, most financial institutions will lend you up to 80% of the property value. The rest of the 20% represents the cash deposit, the money you have to come up with.

If you want to learn more about lending criteria or features and whether you are eligible for credit products before speaking with mortgage brokers or credit representatives, you can use an online home loan products eligibility calculator. 

Home loan

FAQ – What happens if I cannot repay a home loan?

What happens if I cannot repay a home loan?

In case someone is unable to pay the mortgage, he or she might face financial repercussions like credit score going down, additional fees, lenders might take court action, or take ownership over the house and sell it.

If you are unable to repay your loan amounts on the term, you have several options: ask for a repayment holiday, switch to an interest-only loan, or make use of the lenders’ mortgage insurance.

Is a home loan a good idea?

Buying a home is one of the most important financial settlements you will ever make. Although becoming a house owner process might seem daunting, getting a home credit product is the best solution.

Comparison rate

The HDFC calculators are based on a series of factors like monthly income, age, fixed monthly financial obligations, credit history, other monthly EMIs of existing credits.

Keep in mind that these calculators will only estimate your chances of credit approval. For a complete picture, you need to rely on brokers’ service and advice.

They will answer your questions regarding the comparison rates and other factors that influence the mortgage application. 

Contact us for a no obligation free consultation.

*The discounted rate (currently 1.89% p.a.) is calculated by subtracting a discount of 0.45% from the Standard 2 Year Fixed Rate (currently 2.34% p.a.) and only applicable while the loan remains in the Home Package Plus. At expiry of the 2 Year Fixed Rate Term, the loan will revert to the applicable Standard Variable Rate advertised at the time (currently 4.98% p.a.) less the Home Package Plus discount (currently 2.34% p.a.). LVR means Loan to Value Ratio, stated above & inclusive of Lenders Mortgage Insurance (LMI). The Standard 2 Year Fixed Rate applicable on the day of settlement of the loan will be used to calculate the applicable discounted fixed rate unless the rate has been secured by paying a Guaranteed Rate Fee, which must be selected at time of loan application.