Don't forget NAB is still one of the lowest rates and they dropped their rates more than the other banks last time.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, I completely understand that consequence.
I just got an email from Bankwest, they have dropped fixed rates
2 year special 5.99% paTerryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry, but I am quite reluctant to change lender, first is because of the hassles, second is because the costs associated with ditching and changing lender, and third because if the number doesn’t turn out to be significant, I want to stay with NAB, have been with them almost all my time in Australia and I’m pretty happy with them.
But maybe worthwhile to wait for fixing the rates till next RBA meeting.
Gidday Ferdinach,
It seems toe me you have the tiger by the tail a little, so I hope this helps:
1. Timing – An approval in principle takes no time at all and if you allow a week that should be plenty. However you have to make your loan selection before you make your application and you probably want to allow another week to skill up for this.
1b. Direct or broker – Why not borrowers agent? Failing that, if the lenders that interest you are commonly available through a broker, then definitely go the broker – a good one should save you time and money. Take a moment to understand the difference between pro-consumer mortgage brokers and the old fashioned type – it's important.
2. It seems you are asking if you can capitalise your Stamp Duty costs (i.e. add it to your loan) and the answer is yes you can, however this will increase your LVR. Although I am not a big fan of LMI, you shouldn't get too fixated on whether your lender will charge it or not as this is only part of your Total Individual Cost. Just make sure you get a quotes on a range of lenders that show you the different costs, interest, fees and charges included.
3. Both Michael and Richard have offered estimates based on the limited information you have posted and this is not the full extent that will determine your capacity. As you are six or so months out., the reality is that your borrowing capacity will probably change due to any number of factors, including the RBA cash rate, competition etc. It's good as a guide for now, but again, don't worry about this too much until you get closer to the purchase date. By then, property prices may have changed as well.
4. Mostly no, but it does depend on your agent/broker/lender. It is best to ask them when you arrive at that time and place.
5. Servicing will be based on your income at the time and given you will be 18+ months in the job, the pay rise will almost certainly be factored in. If it isn't, your agent/broker isn't doing a very good job.
6. Who has bad credit? If you suspect you have bad credit noted on your credit file then definitely talk with a borrowers agent or mortgage broker before making applications. Your full history must be disclosed in the first instance if they are to help you find the best solutions.
I hope this helps.
Cheers,
Michael
According to the latest news, it's a good time to get a home loan for new home buyers due to the recent rate cut.
See: http://www.bigpondmoney.com.au/get-the-best-from-your-mortgage-and-the-banksThe article above also has some good tips for people looking for a home loan, and talks about the different characteristics of different people such as the DIY-er, delegator and researcher.
I suppose your personality also has an effect on how you approach your home loan
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