Home Loans

If you are buying a home that isn’t your first home or if you are selling your current residence to buy a new home Mortgage World Australia can help. Our consultants will make the process as easy as possible by helping you find the right home loan from our panel of more than 30 lenders. We can also provide you with information on how to go about purchasing a property. Please read on for information on home loans for which you may qualify and other information important to home buyers.

Home Buyer Tools

  • Steps in buying a property – A general guide explaining the steps you need to take to purchase a property, assuming you have already sold your current residence
  • How much can you borrow? – If you have at least a 3% deposit and want to know how much you can borrow complete this form
  • 100% home loan calculator – If you have no savings or minimal savings and want to know how much you can borrow use this calculator for instant results
  • Calculators – To work out your repayments etc.
  • Loan types – Information on the various types of home loans available

Home Loan Options

If you fit into one of the following categories we may be able to help. If you have any questions about any of the products mentioned please submit your question using our contact us page or call us on 1300 66 12 11. If you would like a free, no obligation assessment of your loan options please apply online.

You are selling your current home to purchase another property

You have significant equity in your current property and you wish to purchase another home before selling your current residence
We have access to a number of lenders who offer bridging finance or relocation home loans. If you have enough equity in your current home it may be possible for you to purchase another house before putting your current property on the market. If you are buying an existing home you will generally be allowed 6 months to sell your current property. If you are building a new home you may be allowed up to 12 months to sell your current property. The best thing about this type of loan is that you will only need to make repayments based on the estimated debt you will have after you sell your current property. Therefore you will not be making massive repayments during the selling period. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.
You have sold your current property and you are purchasing another property which settles on or after the settlement date of the property you are selling
In this situation you would normally have funds left from the proceeds of your sale after paying out your existing home loan and paying agent fees. If the funds remaining are going to be at least 5% of the purchase price of the new property then you could gain approval for a normal home loan for your next property, without actually having the cash in your possession yet. To exchange contracts on the property you are buying you can use a deposit bond instead of cash. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.

 

You have at least a 5% deposit saved over 3 months or more + have funds for costs

You have at least 5% of the purchase price saved over a period of at least 3 months AND you have other funds available for costs
If you are in this situation you should have access to a number of lenders. Some lenders will lend you up to 95% of a property’s purchase price as long as you satisfy their credit and serviceability criteria. In some cases you may be able to borrow up to $1 million dollars using a 95% home loan. Some lenders will also allow you to add the mortgage insurance premium to the loan, effectively giving the loan a 97% or higher Loan to Valuation Ratio (LVR). If you have more than a 5% deposit it is generally easier to qualify for a loan. Any loan which is greater than 80% of the purchase price usually involves Mortgage Insurance and as such a one off mortgage insurance premium will need to be paid. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.
You have at least 20% of the purchase price available as a deposit AND you have other funds available for costs
Generally, if you have a 20% deposit, most lenders will not want evidence that at least 5% has been saved over a period of 3 months or more. As such you would have access to most loans on the market assuming you pass the lenders’ credit and serviceability criteria. Also you would not need to pay a mortgage insurance premium, which could save you thousands of dollars. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.

 

You have no genuine savings

 

You have no genuine savings but are being given a non repayable gift from a relative or friend or you have attained a deposit from sources other than a loan
If the gift is sufficient to make up 5% of the property price, you may be able to use a 95/5 home loan for this situation, where the 5% deposit does not have to be saved. Usually, if you borrow more than 80% of the property value you will be required to prove that you have saved 5% over a period of 6 months or more. In the case of a 95/5 loan you can borrow up to 95% of the property price without any genuine savings and at competitive home loan interest rate. You will also need additional funds to pay for costs such as stamp duty. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.
You have no genuine savings but have a relative with significant equity in a property and is willing to act as a guarantor
There are a number of lenders on our panel who offer family equity type home loans. Some of these lenders do not require you to have any genuine savings and will even lend you extra funds to pay for the purchase costs, such as stamp duty. The interest rates on these products are very competitive. All you need is a relative who owns a property with equity in it and is willing to act as a guarantor. It is also possible to limit the guarantee so your relative is not a guarantor for your entire home loan, but for only a small portion of it. Once you build up enough equity in your property the guarantor can then apply to have their guarantee removed. Please call 1300 66 12 11 for more information or apply online for a free, no obligation assessment of your situation.

 

You have defaults on your credit report or are even a discharged bankrupt

You are a PAYG employee or self employed with tax returns and have defaults on your credit record or are bankrupt
There are a number of ‘non-conforming’ lenders that many be able to help. These are lenders that may lend to credit impaired applicants. Assuming you are a PAYG employee or self employed and can fully verify your income you may still be able to borrow 95% of the purchase price even if you have defaults listed against your name. If your credit problems are serious and you have numerous defaults (unlimited number of defaults) or are even a discharged bankrupt you may still be able to borrow up to 90% of a property price. For more details please call us on 1300 66 12 11 or apply online for a free, no obligation assessment of your situation.

 

Disclaimer:
* Loans are approved or declined on their merits by the specified lender and a loan approval is not guaranteed.
* We believe the information on this page to be correct. However we can give no warranty to this effect and we expressly disclaim any liability for loss or damage by any person acting upon advice contained on this page.

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