Different Types of Home Loans

Getting the Right Home Loan for You

Once you have an understanding of what home loans are available, the next step is understand what you need to do and how to find the right one for your situation.

Once you are within 3 months of buying a property, home loan pre-approval is something you should definitely get, no matter how much you are intending to borrow. A pre-approval is similar to full finance approval except that the property you intend to purchase has not yet been determined. As you would expect, it is subject to the conditions under which it is approved, but it does give you a very clear framework within which to work. For more information, go to Getting Home Loan Pre-approval or click here to get home loan pre-approval.

When you are borrowing more than $150,000, the options you have in terms of discounted interest rates and flexibility in loan terms starts to increase. The more you borrow, typically the better interest rate terms you can negotiate. Be aware however that you get what you are prepared to pay for and you may be better off with a more basic home loan if you aren't borrowing a lot or your circumstances aren't going to change much in the next few years. For more information on the deals available on larger loan amounts, go to Borrowing More than $300,000.

The competitive lending market now means there is a home loan available for pretty much any situation and self employed people are now widely catered for through numerous lenders. Some lenders are even offering low-documentation loans at standard rates. For more information, go to Home Loans for Self Employed people.

environmentally responsible home loans

If you care about our environment and want to support companies who do as well, then you should definitely talk to us! Most X Inc Finance lenders take a stand on environmental issues management aligning their corporate responsibility with sustainable values and responsible environmental behaviour. At least one lender offers rebates and voucher discounts with a variety of home loan products. Another has offers $500 toward the purchase of any kind of water saving or water management device when you organise your home loan with an X Inc Brokers. Click on the link for more information on environmentally responsible home loans.

Equity Finance Mortgage (EFM)

If you want to buy a property that is more than you can afford, you might want to consider an Equity Finance Mortgage. An Equity Finance Mortgage (EFM) is a new type of home loan that effectively boosts your potential borrowing capacity by anything up to 25%. It is available in most capital cities and major regional centres. Talk to an accredited mortgage broker to find out if the area you are buying in is covered and you can find out more about Equity Finance Mortgages (EFM) at Equity Finance Mortgages.

"I have had three houses and I deal with people all day as a manager and found Andrew Walker's approach as totally professional and helpful in every aspect. If more companies had your attitude to business it would be great."

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Honeymoon or introductory rates are usually offered to entice borrowers with a low advertised home loan interest rate that may be as much as one percentage point below the mainstream home loan rate and therefore look very attractive. The rate is usually fixed, capped or variable for the first 6 to 12 months of the home loan. One lender now offers a 5 year honeymoon home loan which is reasonably flexible - and the interest rate actually drops .1% from the final rate at the end of the five year term. For more information on honeymoon and introductory home loans go to the pros and cons of honeymoon rates.

In this competitive home loan market, first home buyers in Australia have a fantastic array of options. Click here for more information on First Home Buyer Grants, Deposits, Fees and Cost and information on how the home buying process works.

gay friendly Home Loans

X Inc Finance respect and support the rights of every community group - ethnic, religious and sexuality. If you are gay and would prefer to meet with a gay broker, we can offer you that service. We understand the needs of gay singles, that gay households are often, but not always childless and often with double incomes. We understand the potential stresses of communicating special situations and with a passionate commitment to diversity, we make sure all our customers get the best deal we can possibly get for them. For more information go to Gay Friendly Home Loans.

The range of options available to retirees is larger than most people think. If you are over 55 and not working or intending to work, you may find yourself technically classified as retired. Your age or lack of stable income are now considerations when it comes the way you are assessed as a risk by lenders when you want to borrow money. For information on Home Loans, Investment Loans and Reverse Mortgages, go to Home Loans for Retirees.

Deposit bonds are an alternative to a cash deposit. They are effectively a guarantee to the vendor equal to the amount of deposit required and are a cash deposit substitute between signing the contract and settlement of the property. Deposit bonds can be issued for all or part of a deposit, but are usually for 10% of the purchase price and cost about 1.2% of the deposit. For example, if a 10% deposit on a $500,000 property is $50,000, a deposit bond will cost you $600. To find out if deposit bonds might suit your situation, go to Deposit Bonds.

If you are buying your first home, the fastest way to get an understanding of how the lending market works, what is available and typically what suits your situation, is to talk a good mortgage broker. A mortgage broker usually deals exclusively with mortgages. By combining professional expertise with access to many different lenders and hundreds of home loan products, a broker provides you with an efficient and cost-effective method of reviewing, negotiating and organising your home loan options. To find our more, go to How Mortgage Brokers Work.