3 Steps to Refinancing or Getting a Home Loan.
Getting a home loan, without the dramas, is as simple as knowing who to ask and getting your facts straight from the very begining. We’ve made the home loan process easier for you and mapped it out in plain english.
Step 1: Get to know your borrowing power
Your borrowing power is the amount that you can afford to borrow. To make sure that you can comfortably meet your mortgage repayments, most lenders will usually allow up to 30% of your household income to go towards your repayments. Use our borrowing power calculator to get a rough estimate of how much you can borrow.
Step 2: Work out your home equity
If you are refinancing your home loan or buying a second property, chances are you’ve built up equity in your home. Most people will borrow against the equity of their home and use the money to renovate, buy a second home or an investment property. Your home equity is worked out by subtracting the amount you owe on your mortgage from the current market value of your home. So, if your home is valued at $300,000 and you owe $170,000 on your mortgage, your home equity is $130,000.
Step 3: Talk to the right people
Take the hassles out of the home loan process by talking to an experienced mortgage broker. Their insiders knowledge of the mortgage industry will not only save you time but will ensure that you are getting a deal that saves you money. A mortgage broker will:
- Do the research on your behalf and find a quality home loan product that’s right for you
- Negotiate with the lender on your behalf and get you a better deal
- Help you compile all your supporting documentation
- Help you complete the application
