Our MHG Home loans team can help ease your nerves, because home loans shouldn’t have to be scary!
1.Understanding what it means:
A Home Loan is a loan given to you by a home loan provider. When you secure your bond and it is registered, the home loan provider will keep your property’s title deed until your home loan is paid back in full. This means that the house stays in the provider’s name, and will become yours as soon as the payment is completed.
2. How much can I get?
Each client is assessed individually, based on their affordability and overall score. You can apply for a credit check which will give you an estimated price range to look at when you purchase a property. This is a good starting point.
3. Can I get a home loan if I have a judgement or if I am under debt review?
No. You will first need to have the judgement lifted from your credit profile, and this can take up to two years. Contact a debt review centre to assist you with your credit profile. You will not be able to receive any source of finance whilst under debt review. It is important to ensure that accounts are always up to date and paid on time.
4. Are interest Rates Affordable?
Home Loans are cost effective because the interest rates tend to be lower than any other form of borrowing. This means that you can borrow money for home improvements, vehicle purchases or any other reason from your bond, and your interest rate will not be affected.
5. Will I get Taxed on my home loan?
There are five types of deductions that can be claimed for a Home Loan:
- Deduction for Interest Paid on Housing Loan
- Deduction on Principal repayment
- Deduction for Stamp Duty and Registration Charges
- Deduction for first time Home Buyers
- Deduction for Joint Home Loan.
This will assist you in saving money on your monthly repayments. Make sure you speak to your accountant for more information regarding Tax deductions.
6. What if I don’t have a large deposit?
The need for a deposit depends on your affordability and credit score. If no deposit is declared upon submission, we will apply for a 100% bond. Should you not qualify for the 100% bond the banks may request a deposit to be paid before registration of the property.
If you have any more questions regarding home loans, feel free to contact us