How to secure a residential home loan

A residential home loan and a financial loan obtained for the purpose of purchasing a residential home or block of land where the residential home will be built. This is opposed to a commercial property loan which would be used to purchase a building with a view to development or renting it out to achieve income.

There are a number of key differences with a residential home loan, most of which are favourable. Generally banks will lend you up to 80% of the properties value with no lenders mortgage insurance required. For a commercial or development loans your contribution must be higher than 80%.

As banks are conservative by nature, it is important to keep this in mind when considering what valuation they will put on your property. Banks will generally be on the conservative side of valuations and use a desktop valuation to support your loan (3rd party date - for example check out www.onthehouse.com.au for an example of the valuation they may have over your property).

Therefore when considering how to obtain a residential home loan consider:

1) What is a conservative valuation of your property 
2) Do you have a minimum of a 80% contribution to the price of this property
3) Do you want Fixed / Variable or a mixed rate over this loan
4) What will the period of the loan be 25 / 30 years
5) What income and assets do you have to support the amount to be loaned (Banks may lend up to 6 times your income as an approximate guide)
6) What other loan functionality do you require (Offset account, Redraw facility, Credit Cards etc)

Contact the team at Brookline Finance today for more information.