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Home Loans
There are several types of home loans, including fixed-rate loans, variable-rate loans, interest-only loans, and split loans. Each type has its own features and benefits, so it’s important to choose one that suits your financial situation and goals.
The amount you can borrow depends on factors such as your income, expenses, credit history, and the value of the property. Lenders typically use a borrowing capacity calculator to determine how much you can afford to borrow.
With a fixed-rate home loan, the interest rate remains the same for a set period, providing stability in your repayments. With a variable-rate home loan, the interest rate can change based on market conditions, which can result in fluctuating repayments.
In addition to the loan repayments, there are other costs to consider, such as application fees, valuation fees, legal fees, stamp duty, and ongoing fees. It’s important to factor in these costs when budgeting for your home purchase.
To improve your chances of approval, maintain a good credit history, save for a substantial deposit, reduce existing debts, and provide accurate and complete documentation. A mortgage broker can help you prepare and present a strong loan application.
