Frequently Asked Questions
How much can I borrow?
How much you can borrow depends on a range of different things such as the type of loan you are seeking, the security over the loan you can provide, your income (including income from investment properties you own), your past credit history, your savings/deposit history. The financial specialists at Solution Home Loans can provide you with a good indication of your borrowing power and help you work out what your repayments will be.
What documentation do I need to apply for a loan?
The kind of documentation you require depends on the type of loan you are applying for. Generally, at a minimum, you will be required to produce documents such as group certificates etc. which can provide evidence of your income.
If you are a first home buyer you will need to provide a First Home Buyers Grant Application.
What is a low doc loan?
A Low Doc loan is a loan that is designed specifically for self- employed, contractors, and other individuals who may have difficulty providing up to date financial documents to provide proof of income. You need to be able to demonstrate your ability to repay the loan and meet the required loan criteria. Talk to the financial professionals at Solution Home Loans to find out if you are eligible to apply for a low doc loan.
What is a Comparison rate?
The comparison rate, often referred to as the AAPR, reflects the total annual cost to a borrower of a loan. It includes the interest payment and fees and shows all costs associated with the loan in one percentage rate.It is a legal requirement that all lenders disclose a comparison rate when advertising loan interest rates.
Will my interest rate be variable or fixed?
A variable rate means that the interest rate can go up or down for the duration of the loan. A fixed interest rate loan means that interest rates remain at the agreed fixed rate for the period of time you have fixed the rates There are loans available that allow you to opt for either variable or fixed interest rates; or a combination of the two. The financial specialists at Solution Home Loans can work with you to find the best option to suit your individual loan requirements.
What is preapproval?
A preapproved loan is a loan approval that is given based on your current financial circumstances. A preapproval is useful because it allows you to begin your search for your dream home with a clear budget in mind. The final approval is always subject to satisfying lenders requirements.
Can I make additional payments or repay my loan early?
Yes. Most loans have flexible repayment plans. However, some loans do have penalties if they are repaid early. If you think you may wish to make extra payments or repay the loan early it is wise to ask the financial specialists at Solution Home Loans about including these options when establishing your loan.
establishing your loan.
What is property stamp duty?
Property stamp duty is a compulsory state government tax that is levied upon the sale of property to cover the cost of the legal documents of such transactions.
How much property stamp duty will I have to pay?
The amount of property stamp duty you have to pay depends on which state you live in as each state has individual Property Stamp Duty requirements. As well as this from time to time concessions, generally to first home owners, are made available. Check with the finance professionals at Solution Home Loans to see if you are eligible for any property stamp duty concessions.