Home loan options/features

Hi all,

Looking at different home loan options at the moment for a first home purchase. Looking at apartments around $700,000

I have a total of $120,000 in funds for the deposit (in Ubank)

I want to keep at least $30,000 in the bank for backup purposes and to be able to pay off the loan faster if needed.

Are there any specific features of a loan I should look at when dealing with these requirements?

I'm currently banking with Ubank, which has Flex variable - Pay off your loan faster with 100% interest offset on your linked Ubank accounts with he following:

• Additional payments: Pay back more than your minimum repayments for free
• Offset account(s) - Reduce the amount of interest you pay each month with multiple offset accounts.

That looks pretty good but wondering if any other recommendations or other home loan features i should consider?

Thanks

 

I suggest you contact a broker to get a better understanding of your options and how they meet your need. Brokers can offer loans from UBank and plenty of others.

Your requirements aren't quite as straight forward as you might think. You'll likely need a loan above 80% LVR which may involve LMI depending on your circumstances.

Offset accounts are generally quite useful for a lot of reasons. Almost all lenders offer them.

 

You would need an offset account but possibly also the ability to redraw and split if you will be investing later using the debt recycling strategy

 

Have you spoken to a broker?

Besides offsets, different lenders have options around internet banking, branch presence, ease of use etc and of course different rates. Some good brokers above to reach out to if you haven't already.

 

Youd probably need specific advice for loan products.

But what you mentioned is pretty standard

 

Thanks for that, I'm Australian and Eligibility Tool | Housing Australia said my taxable income is over the threshold. What a joke.

 

You may already know this but it is based on last years NOA. Had plenty of people who thought they did not qualify but actually did.

 

If the OP would just speak with a Broker all their questions would be answered

 

Another one, in NSW first home buyers pay no stamp duty for existing properties under $800,000?

I saw this First Home Buyers Assistance scheme on the NSW website, but it refers to it as rate of transfer, is that the same as stamp duty?

Will speak to a broker eventually but need to collect some initial info for financial planner first.

 

Why?
BTW a Broker will be able to give you the information you require, you're asking brokers on here anyway so just pick up the phone and have a chat to one.
They will be able to tell you what loans you qualify for, how much you can afford to borrow (accurately), what interest rates are, as well as any government incentives/grants available to you.

Brokers should be engaged early on, not after you think you've done all your "research" and think you know which loan product is best.

 

You really need to chat with a broker to see if you have access to other options including 5% First Home Guarantee Scheme as you don't quite have a full 20% deposit to avoid LMI. The broker will review your position 1st, work out a solution and the guide you on the lender and features of the loan.