Residential Mortgages Overview
Residential mortgages are simply designed for the purpose of purchasing a property of a domestic nature and hence cannot be used to buy a factory or a shop front for example.
What residential mortgages can be used for is to purchase an owner occupied home, a block of land, an investment or to refinance an existing residential mortgage.
There are literally hundreds of options to choose from so what we've done is highlight various product options for you below and explained each of these options in more detail for your reference.
It should be noted that with the Credit Issues being experienced Globally, Lenders know require applicants to show 5% genuine savings for any loans that are above 85% Loan to Value. Although Lending institutions will still consider applicants under a no deposit scenario, it is of utmost importance that you can demonstrate a 5% savings pattern over a 6 month period.
For further information we recommend, prior to any purchase that you obtain a pre-approval, ensuring that the Lender of choice is comfortable in providing you with the finance to purchase your First Home.
You can contact us for more clarification.
Variable Rate Mortgages
Mortgages which have a variable rate are the most common in the market and are simply have an interest rate which can fluctuate either up or down.
This depends on the market conditions and generally Australia has seen very stable mortgage interest rates over the last decade although in recent times this has changed.
Variable interest rates do offer you a great deal of flexibility in the mortgage product structure by being able make additional repayments at anytime and also attach associated products such as a line of credit or a redraw facility.
To find out more about the range of residential mortgages we have on offer and the various structures simply contact us and have one of our consultants answer any questions you may have.
Fixed Rate Mortgages
As the name suggests, fixed rate mortgages simply offer a fixed interest rate for a specified period of time. What this does is allow you to budget more accurately knowing that your interest rate will not go up or down so in essence having a fixed rate gives you repayment stability.
There are varying terms and fixed rate mortgages can vary from 1yr through to 15yrs fixed and this depends on the lending institution chosen.
Fixed rates can also offer some level of flexibility in repayments as some lenders allow up to a certain amount of additional repayments per annum and the ability to have some additional features attached to the fixed rate product as well.
To find out more about fixed rate mortgages and your options overall simply contact us and ask consultant to find you the right product and explain the options available.
95% Residential Mortgages
This type of residential mortgage provides you with up to 100% of the purchase price and therefore minimises your out of pocket expenses.
The 95% product also helps you by allowing you to use your savings to pay for associated costs, or if you are entitled to the first home owners grant then this could be used entirely for associated costs.
Mortgages which provide up to 95% also offer competitive interest rates and there are a number of lenders who offer this type of product option, so why not contact us to find out more.
Which residential mortgage is right for me?
The right residential mortgage for you will depend on what your need is, and some of these needs may be things like:
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What mortgage repayments can I afford? |
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What features and benefits do I want from my mortgage? |
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Do I want to invest or purchase an owner occupied property? |
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Do I need a 100% residential mortgage? |
There are many considerations to make when choosing the right mortgage and to help you make an informed decision we invite you to contact us and have a chat to a consultant.
Our consultant will help answer your questions and then source the most appropriate solutions and present these options to you.
What do I do now to get my residential mortgage?
To get a residential mortgage which suits your needs best you can simply contact us and allow our experienced consultants to guide you through the options available.
Remember we have over 30 lenders on our panel and have a wide range of mortgages to choose from so contact us now.
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