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ING home loans
|Compare Back||Home loan product||Interest rate||Comparison rate||Monthly repayment|
|Owner Occupied, Principal & Interest, LVR Interest rate 2.78% Variable||Comparison rate 2.81%||Monthly repayment $2,254||Enquire now|
Since 1999, ING has been providing Australians with access to a selection of flexible, low rate home loans.
With a multinational headquarters in The Netherlands, ING is the world’s largest direct savings bank, and it’s status as an online-only lender means that they can pass the savings from not having to maintain branches onto customers by way of discounted rates and fee waivers.
Its home loans and transaction accounts have won numerous awards including the Money magazine – Money Minder of the Year, the 2020 Australian Financial Institution of the Year – Non Big 4 and the Non-Major Lender of the Year by The Adviser.
Because ING has no branches for customers to visit directly, their customer service has to make up for it, and it does in spades. You can ring their Customer service centre, as well as use their online bank or mobile app, or you can get in touch through email if you’d prefer.
Australians based in Sydney can also visit the customer service centre in person.
As borrowers can only apply for a loan over the phone or online, it’s important to make sure you have all the available information you’ll need to apply for a loan. Be sure you have the following available:
- Proof of Identification: Enough to pass the 100 point check, which can include your passport, birth certificate, etc.
- You will need to be able to provide evidence of your financial details when you apply, so make sure you hang on to your tax returns, pay slips, and other financial details.
- You’ll need to agree to a credit check.
- A list of your income against your expenses, which will show the lender a more complete view of your current financial situation as far as incoming and outgoing cash flow is concerned.
- A list of assets and debts – assets include things like existing properties and investments as well as savings, while debts are any open lines of credit or other loans, etc.
- Details about the property you’re planning to buy, such as the price of the property and how much you are looking to borrow.
Additionally, anyone looking to refinance will need to provide statements the last six months of their existing loans, and anyone looking for a construction loan will have to provide proof of sale, council approved plans, and building quotes.
Save your time and get specialist help to find the best home loan – FREE.
Compare home loans
When considering a home loan there are several different factors to take into account. If you want to live in the property, or buy it as a future investment, will determine whether you should apply for an owner occupied loan or an investment loan. You can also browse by company to see the different types of home loan offered as some loan providers offer basic products, as well as inclusive package deals.
You will also need to consider what sort of payment plan suits you. Home loans are offered either at a fixed or variable rate of interest. Fixed rate plans suit those who may be on a budget or prefer to know exactly what they pay back each month. However, a variable rate loan could work to your advantage as you could pay back less overall if interest rates fluctuate.
When considering any type of home loan, it is recommended to get an expert’s opinion. They will help you choose a home loan that’s right for you as well as determining what sort of payment plan will work best for you and your money.
2020 Best Home Loans
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Why Work With Us?
Most Updated Rates
Not only are our rates most updated, we get special deviated rates from banks at times because of the volume of business we refer.
We send you a comprehensive summary – what we call Rates Report, that breaks down for you for each package the subsidy, lock-in, penalty, min loan, hidden terms, etc.
Not all brokers tell you everything like direct-to-bank packages online. We do. Why? Because we value your trust. That’s why most choose to work with us in the end.
“Experienced”, “in control”, “professional” are my thoughts when working with Eileen.
I worked with the MortgageWise team for my previous home loan in 2020 – fuss free experience too. Just a few months before my current loan is ready for refinancing, Eileen texted me and asked if i am considering a new home loan refinancing. Not pushy at all and she left it to us to assess and make the decision to pursue or not.
When we engage her for this refinancing, the feeling was that everything was under control and she makes sure to clarify our queries anytime. It makes our decision making easy and within a few weeks, we have secured a new home loan (a pretty good deal too).
Thanks MortgageWise, especially to Ms Eileen Pang.
“I made a reach-out request late evening, and MortgageWise responded swiftly. I informed Melissa that I needed my case to be treated on urgent basis due to impending settlement. She has managed to find a bank who are willing to take on the case with good rates.
It is my first time getting a home loan, and sibor package has been daunting but made better with responsive people. Thank you.”
“MortgageWise.sg made it so simple for me. My bank loan was completed without much fuss and the speed was amazing fast. I just choose the bank and loan package, inform you and confirm with bank. Your loan comparison is so simple and easy to understand and that made my life so much easier.
Eileen, Thanks for all the help”
Banks Start To Cut FDR Mortgage Rates
V-shaped Recovery? Not For Interest Rate.
SIBOR Crashed – A 1% Home Loan?
Fed’s Surprise Cut Failed To Convince Markets
How To Right-Size Your Mortgage For Hard Times?
How Much Interest Do You Actually Pay?
SIBOR Has Dipped To 1.68%
Interest Rate Up or Down In 2020?
When you work with us in long run..
Save On Average $10,000!
Starting with a purchase, you save $700 when you apply for your loan through us with our special $1,800 purchase legal fee . Each refinancing later, based on a typical loan of $750,000, the average savings of 0.20% (else you won’t need to switch banks) translates into $1,500 over 2-year period (typical lock-in ).
Together with our special rewards * of $150 Fairprice gift card for each refinancing (min loan >$500,000), an average tenure of 10 years would mean the typical homeowner stands to save close to $10,000 with us!
Plus our service is absolutely free.
1. What do you earn if this service is free?
Yes, our service is free to you as banks pay us a distributor fee for referring clients to them. But your interest and package stays the same otherwise we will tell you, and which you can easily validate.
2. How can the rate be the same then?
Unknown to many, bankers earn commissions on top of basic pay. So the bank pays either way be it an internal commission or an external referral fee. This is a distribution cost to the bank which does not affect your interest rate.
3. Why can’t I search online on my own?
Certainly you may. But why go it alone when you can outsource this task to a broker who helps sift through important details and provide you a concise proposal at no cost? Best part is you get additional perks from the broker.
4. Will my information be safe with you?
If you like, you may submit documents directly to the bankers, and all information will be kept private and confidential. We take data protection very seriously as it is a now a criminal offence in Singapore.
“Eileen has been very helpful right at the start from providing comparison of loan packages from the various banks to checking with banks on the indicative value of the units that I am keen to purchase. Once I received the OTP, Eileen acted promptly to source for the lowest interest rate in the market and link me up to the law firm and banker within the next day.
I am glad that I choose to work with MortgageWise as their advisors are able to provide professional advice which makes my home purchasing process a smooth and hassle free one. I will certainly work with MortgageWise again when I need to re-finance or recommend them to my friends.”
“This is my second time I refinance my home loan with Alvin.
He was reliable and was able to answer my questions promptly. He was able to provide best rates which saved a lot of my time contacting each banks. I’ll definitely be recommending him to others.”
“Eileen has been very prompt and helpful in providing us with the necessary information, including a comparison of various bank rates for the best loan.
Thanks for helping us to make the biggest financing decisions in our lives so far!”
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More Commonly Asked Questions..
Which bank’s home loan is best in Singapore?
There are different types of home loans in Singapore. Besides choosing the lowest rates, there are many other considerations you should consider:
- Fixed rate home loan or variable rate home loan
- Choosing the right home loan mortgage peg: SIBOR, FHR or BOARD
- Free conversion within or at end of lock-in period
- Waiver of penalty due to sale of property during the lock-in period
- Prepayment partially without penalty within the lock-in period
- Interest-offset mortgage loan
- Locking down “guaranteed spreads” on loans with select lenders
- Lowest valuation fees from select lenders
- (For refinancing) Reimbursement or legal subsidy/valuation subsidy to defray fully all transaction costs
Find out the unique attributes of DBS Home Loan, OCBC Home Loan, UOB Home Loan and how to choose between the Big 3 local banks, plus a few other worthy international banks and why we recommend them.
What is the current home loan rates?
Current home loan rates fluctuate in the range of 1.80% to 2.00%.
See comprehensive display of the Top 10 home loan packages in Singapore – both fixed and floating rate, using our interactive Rates Display.
Compare All Latest Rates 2020
Should I reprice or refinance?
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Reprice means changing of a home loan package within the same bank; Refinancing refers to moving your home loan to another bank with better rates altogether.
Quite obviously a big part of the decision to stay or switch banks centres on who offers better rates and the cost of staying (conversion fee) vs. cost of refinancing (legal fee and valuation fee). However, you may also want to explore the different loan features offered by various banks in Singapore which may sometimes outweigh the slight difference in rates per se.
Our observation from the collective experience of all our clients over the years has pointed to an obvious fact – it does not pay to stay loyal to the same bank who usually offers the lowest interest rate to acquire new customers to the bank. This is a fact-of-life across all industries.
How to choose between fixed rate home loan and floating rate home loan?
There are at least 6 factors to consider when choosing between fixed or floating rate home loan:
- Owner-occupied versus investment property
In general, floating rate is more suitable for investment property as there is rental income to offset increases in monthly repayment. On contrary, mortgages on owner-occupied properties are serviced entirely from employment income and any interest hikes is felt more acutely. Hence fixed rate home loan for own-use property makes sense especially when there is less chance of a sale during the fixed rate lock-in period.
- Intention to sell
As fixed rate home loan comes with a penalty of 1.50% if the loan is redeemed in full due to sale within the lock-in period, it is better to choose a floating rate home loan for those who are selling. Albeit, from time to time, there are banks offering full or 50% waiver of this penalty if due to sale.
- Gap between fixed and floating rate
As a rule of thumb, is the gap between the lowest fixed and floating rate is less than 50 basis points or 0.50%, it justifies the decision to go fixed while the interest cycle is going up.
- Size of the outstanding home loan
Smaller loans below $500,000 generally costs more to refinance or reprice and you would be better off on a floating rate home loan where the spread stays constant and does not step up after the promotional years.
- Job stability
Similarly, if there are headwinds in your industry with risk of potential job loss leading to temporary loss of income, floating rate home loan with constant spread will be preferred.
- Outlook on interest rate over the next few years
In general when rates are rising (like from 2020 to 2020), you will benefit more by locking down a fixed rate home loan at early stage of the cycle. The reverse will be true then when rates are falling where floating rate home loans will be favoured. Between the cycles is when the decision becomes tougher and it is here that professional mortgage brokers make the biggest difference in terms of dispensing the right advice. After all this is what they do day in and day out – monitoring macro environments and tracking interest rate movements.
How low will SIBOR go in 2020?
SIBOR (Singapore interbank offer rate) is the rate that banks lend to one another in the interbank or money market, and is administered by ABS in Singapore.
The 3-month SIBOR is the benchmark interest rate used to price loans and is highly correlated with US Fed funds rate.
As Fed has now indicated a pause after cutting rates 3 times in 2020, we are now projecting the 3-moth SIBOR to trade sideways for a while in the 1.6-1.8% range-bound.
Home Loans Brisbane: The Definitive Guide
Market average loan approval rate
This is the complete guide to Home Loans in Brisbane.
In today’s guide you’ll learn:
- How to find the best home loan in Brisbane
- How to choose between variable or fixed home loans.
- How to uncover hidden bank fees
- Which bank is the best for home loans
- Dozens of Home Loan Best Practices
In short: If you want to buy a home or refinance, and need a loan you’ll love this new guide.
Chapter 1 Home Loan Basics
In this chapter I’ll cover Home Loan Basics.
(Including what the best features are and why they’re important)
So if you’re getting stated with finding a home loan, this chapter is for you.
Let’s jump right in.
Do You Have Enough Deposit?
If you don’t have enough deposit, looking at home loan options is pretty much impossible.
Because without a deposit, or the help of a guarantor you won’t be in a position to get a home loan.
(Most banks need 8-10% deposit these days)
You can find out if you have enough deposit using the Deposit Calculator.
Enter how much you have in savings, how much deposit you put down (8%) and the interest rate you expect.
And the calculator will let you know what your home loan options are.
What makes the Best Home Loan in Brisbane?
The best home loan is going to come down to your individual situation.
If you think you will be able to make extra repayments, and pay down the loan faster than a variable rate could be most suitable.
But if you’re looking for stability, or are concerned about interest rates going up a fixed interest rate might work.
Then there is type of loan to consider…
Why is the type of home loan important?
Some banks charge higher rates for investment loans, compared to home loans to buy a house to live in.
These day getting the best home loan comes down to one thing: repayment type.
In 2020 if you are buying a home to live in, almost every bank will need you to take Principal and Interest repayments.
(In other words, you are paying back the loan you borrowed from the bank as well addition to the interest)
So, if you are buying an investment property then its fine to look at interest only repayment… but these do often have a higher interest rate.
Why cheapest interest rate should be your #1 Goal
I should point something out:
The term “Cheapest Interest Rate” is completely misleading.
Yes, you want to have a cheap interest rate. But it should be your #1 goal.
Let’s say you are a Police Officer, or Nurse that earns regular overtime.
And that overtime forms 5% of your total salary.
Well, if you applied for a loan with 2 of the big 4 banks that don’t accept overtime you could have your loan rejected!
…Not to mention that recent industry figures show that mortgage rejection rates have risen from 8% to 40% of loan applications in 2020.
Put another way, 4 out of every 10 home loan applications are being declined right now.
Bottom line? Having a cheap interest rate is nice.
But the ultimate goal of getting the best home loan is just that, getting a home loan approved in the first place. 9 times out of 10, these two goals align. But it’t an important distinction to make.
With that, its time to dive into chapter 2.
Chapter 2 How to get the best home loan in Brisbane
This chapter is all about the critical first step of your home loan journey: Finding a loan.
And let me be clear about something:
Most people skip this step. And they end up going back to the bank they’ve always been with (Dollarmite anyone?), hat in hand hoping they’ll get the money.
Sure, you might get the bank manager on a good day.
But if you want to get 2-3x the amount of options, this initial research is KEY.
So without further ado, here’s how to CRUSH finding the best home loan in Brisbane.
Your Personal Goals
Your first steps are to set up goals for yourself and what you want to achieve with your home loan…
For example, let’s say you are a first home buyer.
Your goal might be to buy your first home in the next 3 months. Or save up a little more deposit to save on the lenders mortgage insurance.
Either way, it’s important to set those high-level goals BEFORE you get into the weeds of home loan products, features and policies.
The 5 most common home loan goals we see are:
- ✅ First Home Owner wanting to stop renting, or living with parents and buy a home.
- ✅ Second home owner running out of space and wanting to upgrade your home.
- ✅ A First time investor wanting to buy an investment property, or grow a property portfolio.
- ✅ Home owner wanting to build a brand new home.
- ✅ A home owner or investor wanting to refinance their uncompetitive mortgage.
Which are you?
Once you’re clear on your high level goals its time to drill down a bit further.
That way, you can make sure you find a home loan that not only works for you, but can actually get the property you want…
Your Property Goals
So now you are clear on your personal goals, its time to set specific property goals.
And what I mean is getting specific on the type of property you are looking at buying, and a shortlist of suburbs.
Because not all banks, like all properties or all loan purposes.
Building a Home
For example, there are banks like ING who do not do renovation, construction or building loans.
In other words: even if ING Direct had the best home loan product, they would decline your construction loan.
…Or worse, offer a personal loan and charge an interest rate TWICE the cost of a home loan.
Buying a Unit or Apartment
Some banks won’t lend in particular post costs like Brisbane’s CBD because it is high density.
Other banks go one step further and will restrict lending if you are buying an apartment in a SPECIFIC building.
For example with one major bank buying in Sphere apartments would need a 30% deposit.
Buying a flood affected Property
…Or what happens if you buy a house that is in a flood affected suburb?
Did you know over 20% of Brisbane’s suburbs were flood affected in 2020?
Sure you can get lending, but you may need to pay for an engineering report to describe the type of flooding the property has experienced in the past.
As you can see having clarity over this stuff is critical to make sure you are aligned to lenders that can help with what YOU want to achieve.
(And not the other way around)
Your Short to Medium Term Goals
Now you know what you’re doing, and where you’re buying.
What will tie this all together back to finding the best home loan are your short to medium term goals.
You can decide on this by breaking it down into:
- ✅ Short Term Goals: 1 to 5 years
- ✅ Medium Term Goals: 6 to 15 years
There are a million different goals you can set, but try to keep them specific to your property and your loan.
- ✅ Do you want to pay down your home loan faster?
- ✅ Are you looking to build wealth through property investing?
- ✅ Will you look to renovate your home?
- ✅ Or even upside to have enough room for a growing family?
Understanding these goals will help you decide between a fixed, or variable home loan.
Chapter 3 How to choose between variable or fixed rates
In this chapter you’ll learn how to pick between variable or fixed rates like a pro.
So if you’ve ever asked yourself:
“Is a variable or a fixed rate better than me?”
“Should I use redraw or an offset account?”
“Is now a good time to fix?”
This chapter has you covered.
What to Compare First?
One of the biggest questions people have about choosing a loan is:
“What do I compare first?”
It’s a tough question to answer. After all: there are over 4,351 home loan products in Australia, and over 30 different banks and lenders.
That said, here are 3 scenarios to help you decide on a fixed or variable home loan rate:
1. You are a person that likes stability, and the ability to budget.
You have read the barefoot investor, you have your splurge, smile and fire extinguisher accounts…
Or you like to know exactly how much your loan is going to cost you over the next 1, 2, 3 years.
While you’d like to make extra repayments on your loan over that time, its unlikely you are going to pay more than $5,000 to $10,000 in extra repayments per year.
You are wanting to settle into your new home, get comfortable with making your repayments and then look to make extra repayments in the future.
If this is you, then Fixed Rates are a great choice.
2. You are a person that wants to pay down your mortgage, or has the ability to make extra repayments each month.
You could have also read the Barefoot Investor, but found the Domino Your Debt chapter more interesting.
Or you get paid bonuses, or have a bit of a higher income and can afford to make more than the smallest loan repayment.
You might be looking to pay down your loan or cut years from the standard 30 year loan term.
And you might even have some cash left over that you want to offset the loan after you settle in, or redraw for the future.
If this is you, then Variable Rates might be a good choice.
Fixed and variable rates both have their advantages and disadvantages.
3. Porque no los dos!
Transaction: Why don’t we have both?
You might be thinking to yourself having a bit of stability, and the option to make extra repayments would suit you…
You might want to have some of your loan variable, and some of the loan as fixed.
If this is you, then a Split Loan could work well!
Create a Mock Mortgage
Now that you’ve decided which option is best for you, its time to create a Mock Mortgage.
In most cases, the banks will lend you MUCH MORE money than you usually want.
The best way to approach this is to work backwards from a weekly, fortnightly or monthly payment figure that you are comfortable with.
Put another way, if you are comfortable with paying $500 per week in mortgage repayments than why apply for a loan that will cost you $1,000 a week.
It will mean you’ll be on 2 Minute Noodles for the next 30 years!
Have a go at setting up your Mock Mortgage here.
Battle Royale: Offset Account vs Redraw, which is better?
In short yes, a redraw facility has the same net benefit as an offset account being you can make extra loan repayments to reduce your interest payable – but also be able to draw the funds back out.
But there can be some confusion around the difference between an offset account and a redraw facility.
There are a few key differences that will help simplify the benefits of an offset account over a redraw facility.
The key differences include:
- ✅ Money is accessible at any time.
- ✅ Acts as a regular savings account and holds spare money.
- ⛔️ Some transaction fees.
- ⛔️ Discipline is required as the money is so easily accessible.
- ✅ Enforced discipline as the money is not easily accessible – you need to apply for the money in advance.
- ✅ Usually has lower fees, and interest rates than loans with Offset Accounts
- ⛔️ Only available for additional repayments that go beyond your standard monthly repayments.
- ⛔️ Some banks charge fees if you are making more than 1-2 redraw withdrawals per month.
One word of warning: a partial offset account, against a fixed rate is a scam.
How to Know if Now is a Good Time to Fix?
Here are two tips to help you choose if now is a good time to fix:
First, don’t listen to the market.
I made the mistake of fixing my interest rates at a time when everyone in the media said rates were going up.
And they ended up dropping…
BY 4.25% in 9 MONTHS!!
Yeah that cost me $5,301 in break costs.
Bottom line: No-one knows which way the interest rates are going, so don’t fix because a media commentator said so.
Second, only you know if its a good time to fix for you.
At this stage you know your goals, the type of property you are looking at buying and your short to medium term plans.
If you’re looking for:
- ✅ Certainty of repayments
- ✅ Ability to budget
Then now could be the right time to fix for you.
If you’re thinking about:
- ✅ Making extra large repayments to your loan
- ✅ Selling your property within the fixed period
- ✅ Refinancing your home loan inside the fixed term
- ✅ Renovating or building a new home and want to use the equity during your fixed rate term
Then now might not be the best time to fix.
Chapter 4 Must have Home Loan Features
As you know, a bank will give you a home loan for 30 years.
But I don’t believe you should pay your loan off over 30 years.
Instead, the goal should be to cut 15 years off your loan.
And in this chapter you’ll learn how to cut years, and save thousands of dollars in interest.
Cut Years From Your Loan With Extra Repayments
Anything extra you pay in the first 5 to 8 years (when most of your payments go towards paying off the interest) will cut your interest bill and shorten the life of your loan.
Don’t delay paying off your home loan if you can avoid it. Instead, try to make small regular extra repayments.
Here’s an example:
Multiple Offset Accounts
Offset accounts are like a normal transaction account, but instead of earning interest they save you interest on your home loan.
Makes sense, but what about having more than one offset account so every dollar you have reduces your interest costs.
Here’s a great example of multiple offset accounts in action:
See how this couple has got all of their different accounts working to reduce the interest on their home loan? Clever… and super effective.
Increasing Your Repayment Frequency
Most banks, by default, give you monthly repayments…So in a year, they will assume you make 12 repayments.
Let’s say your monthly repayment is $2,000.
In a 12 month period you will make $2,000 x 12 months = $24,000 in repayments. Simple right?
If you switch to bi-monthly (also known as fortnightly) repayments, you will make an extra 2 repayments without even realising.
So you make $1,000 payment ($2,000 divided by 2) every fortnight which there are 26 per year = $26,000 per year in repayments!
You will make an extra $2,000 in repayments per year without even realising AND save 4 years and 4 months from your loan.
When is the best time to start making additional repayments?
As you have seen from the examples above, the sooner you start making additional repayments the faster you will pay off your home loan.
Chapter 5 How to uncover hidden bank fees
If you have a bank account, you already know that banks loooovveee charging fees.
The question is:
How do you find out about these fees before you sign up to your new home loan provider?
That’s exactly what this chapter is all about.
It’s a collection of 4 techniques specifically designed to help you uncover every hidden fee and sneaky charge banks will hit you with.
Ask for a Lenders Mortgage Insurance Comparison
Lenders Mortgage Insurance (or LMI) can costs anywhere from a few thousand up to TENS OF THOUSANDS of dollars.
I’ve personally paid over $50,000 in LMI across the various properties I’ve bought over the years.
And while it isn’t cheap, it is often a necessary cost to get into a property faster.
BUT just because you have to pay LMI, doesn’t mean you need to pay top dollar.
How to Get the Best LMI Deal?
There are some mortgage brokers who only take into account the interest loan charged by various lenders.
But if you want to get the whole financial picture, it is very important to keep every loan feature in mind.
In this situation, there is a $3,435 different in LMI costs between banks!
If you wish to find the best deal, there are three things you should keep in mind
- ✅ Find out the LMI providers, lenders, and discount you qualify for
- ✅ Specify what you need, why you applied for a loan, and what particular features you want in your loan
- ✅ Compare the packages offered by different lenders, including the LMI premium, fees, interest rate, and other loan features.
Following this three-step approach will definitely help you secure a good deal and it is possible to do so with an LMI calculator.
Get ALL details of Exit Fees, Settlement Fees, Discharge Fees, Ongoing Fees and Application Fees
According to the RBA, the bank make over $4.04 BILLION (yes, billion) in fees each year.
That’s a lot of fees!
The most common fees include:
Chapter 6 Which bank is the best for home loans?
There’s no other way to say it:
Your Home Loan Application can make or break your home ownership journey.
Use the wrong bank?
You may as well say: “Farewell home”
But when you use the right Bank, with the right home loan you’ll find an easy and simple home buying process.
So without further ado, here are simple (yet effective) strategies you can do to get into your home quickly and easily.
Get All Of Your Information Through
Want to make sure you can qualify for a loan… without any nasty surprises? Try providing all of your information upfront.
Here’s why: You might be on $56,000 annual salary, but your work might do salary packaging or you could have been on holidays recently.
Or could have a HELP debt, or are paid $56,000 including super…
Any of these changes could drastically change your borrowing capacity, so if you are spit balling how much income you are on vs. getting your broker to verify from your payslips it can make a world of difference.
Let me show you:
You don’t want to go thinking you have a borrowing capacity of $463,398 when it actually is closer to $249,841…
Ask What Type Of Pre-Approval Your Bank Provides
Not all banks are the same when it comes to assessing a pre-approval home loan, also known as a conditional approval, indicative approval, approval in principle or home seeker depending on the bank you use.
In most cases a pre-approval is just an indication that the bank is ok to consider approving your loan, they may just complete a credit check and not check any of or your documents and wait until you lodge a full mortgage application to do this.
A full mortgage application is done when you find a property and means the lenders will complete the entire assessment of your loan, they will verify your payslips, bank statements, your income information, savings information and any liabilities you have to be 100% sure they can lend you the money.
Unfortunately, if you have gone out and got a pre-approval from a bank the lender is under no obligation to then fully approve your loan once you have found a property. They can say your situation has changed and knock you back.
Which Lenders Provide Unreliable Pre-Approvals?
Be cautious of any system generated approvals from St George Bank, Westpac Bank, Suncorp, ANZ, NAB or any other bank that gives an on the spot pre-approvals.
If you have a NAB pre approval, or ANZ pre approval you should make sure to ask the questions above to confirm it is a real approval. If you aren’t sure, get in touch with our team, call us on 1300 088 065 or get in touch online so we can review for you.
At Hunter Galloway we work with lenders that will verify your income and deposit information to ensure you have a verified pre approval.
In the case of many of these banks while they may complete a credit check, and provide approval in principle your application hasn’t been assessed from the credit department and therefore the bank could change their decision to lend you the money at a later date.
Bonus chapter Advanced Tips and Home Loan Best Practices
Now that we’ve covered the basics, its time to go advanced.
In this chapter, you’ll see advanced tips and Home Loan best practices that you can use to get the best home loan in Brisbane… FAST
Close Out Your Unused Credit Cards & AfterPay
Each time you apply for AfterPay, ZipPay or a Credit Card the lender will leave a credit check.
And more than 3 credit checks in a year will significantly reduce your credit score.
(To the point where some banks will straight up decline your home loan application)
It is possible to increase your credit score, according to ASIC you can do this by:
- ✅ lowering your credit card limits
- ✅ consolidating multiple personal loans and/or credit cards
- ✅ limiting your applications for credit
- ✅ making your repayments on time
- ✅ paying your rent and bills on time
- ✅ paying your mortgage and other loans on time
- ✅ paying your credit card off in full each month
Credit scores help lenders decide if they should lend money to you. Knowing your credit score can help you to negotiate a better deal with your bank or find an alternative lender that will reward your good credit history.
Clean Up Your Living Expenses
These days, a bank will flat out decline your home loan if you spend too much each month on Uber Eats, Dan Murphys, Netflix or Sportsbet.
For example, last year Westpac changed its living expense credit policies increasing the number of living expense categories from 6 to 13, to get home loan applicants to provide WAYYYY more detail about what they spend their money on.
Once they have that information you’ll be put into one of three lifestyle categories:
And this can make a massive difference to how much the banks will lend you.
Yup, legit check this out:
If you’re living too lavish, you can only access just under half the borrowing amount as if you live a basic lifestyle.
This is part of what your Mortgage Broker will review with you, but between 3-4 months before you apply for your home loan make sure you’re not having any Dan-Murphys-benders or going too hard on the multis.
Find out What Documents They Will Need
Some banks need a few documents, other banks will want A LOT of documents.
(They are lending you hundreds of thousands of dollars so it only makes sense for them to ask for a bit of information)
Question is, do you have all the info the bank is going to ask for?
Most common documents include:
- ✅ Your 2 most recent payslips
- ✅ The most recent years PAYG Payment Summary, also known as a group certificate
- ✅ Last 3 months day to day transaction account statements (where you are paid)
- ✅ Most recent months statements for any open credit card, personal loans, or AfterPay accounts
Have these documents ready to go before you start talking to your Mortgage Broker.
…It’ll speed things up heaps
See If You’re Entitles to Any Perks with Your job
Do you know the banks have a secret list of jobs that qualify for waived lenders mortgage insurance?
Put another way, if you work in one of the following jobs you can buy a home with a 10% deposit (and in some case 0% deposit) and not have to pay any LMI.
SAVING YOU THOUSANDS
Instead of paying monthly for a rental, Australians are looking towards buying, as it allows them to take one step at a time toward owning a property. More and more working professionals are applying for home loans, including:
- ☑️ Medical doctors (who can qualify for up to 100% no LMI)
- ☑️ Accountants
- ☑️ Dental surgeons
- ☑️ Chiropractor
- ☑️ Veterinarian
- ☑️ Pharmacist
- ☑️ Optometrist
- ☑️ Entertainment professionals
- ☑️ Professional athletes
- ☑️ Lawyer
Now its your turn
I hope you enjoyed my guide to Home Loans in Brisbane.
Now I want to turn it over to you: Which of these tips from today’s guide are you going to try first?
Are you going to try making bi-monthly payments? Or start comparing LMI fees?
Let me know by leaving a quick comment below right now.
Please note take this article as general information only and not to be considered personal advice.
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