We get asked a lot of questions about finance, whether people are buying their first home or refinancing or an investment property. We can understand as there are so many bank policies and calculators out there to consider. Some are listed below. Do you have any burning questions that you’d like answered?
1. I am in a new job under probation, can I look for a home loan?
Yes, you only require one payslip to be eligible for a home loan, provided you qualify for the borrowing criteria.
2. I am in a casual job and have savings for a home, can I borrow?
Yes, if you have been in a position for a minimum 3 months and can show salary credits into your bank account, you may be eligible for a home loan, provided you qualify other borrowing criteria
3. What if I’m in a contract role?
Depending on whether you are in a PAYG contract or a self-employed arrangement with your contract, you may be eligible for a home loan.
PAYG contracts are treated similar to a permanent position and if you have available payslips you can go for a home loan. It is understandable, some industries like Information Technology only have contractual arrangements and if you can prove history, this is helpful.
If you are in a self-employed contract arrangement, you are required to have 2 years’ worth of ABN and at least 1 year of tax returns done to access finance
4. I’m a business owner and my business shows a lot of loss, so I can save on tax, how can I ensure I maximise borrowing?
Banks look at your taxable income for borrowing. If, for whatever reasons high expenses in your business result in low earnings and maximised tax savings, you will struggle to borrow for a home. Further, if this changes, if you have significantly different income reported from one financial year to the next, you will need to be able to explain this to the bank. Reasonable explanations can assist your case and therefore approval
5. I work on ‘cash in hand’ basis – can I borrow for a home?
Cash basis means no payslips and is not legal. You will not be able to borrow whilst earning ‘cash in hand’ income.
6. What’s the best rate I can get?
When it comes to taking out a loan, everyone is looking for the best deal.
As mortgage brokers, we work with a wide range of lenders with the focus of acquiring the most suitable value proposition for our clients.
Rate you receive will also depend on various factors – such as your deposit (are you doing a 20% deposit or 5% deposit).
7. I have a small deposit and in many circumstances this may impact my interest rate, how can I minimise my rate?
Find out from your broker whether you can set up the loan in such a way where you can fix part of the loan and have features that give you the ability to save on the loan long term.
YOUR QUESTIONS:
What are your key questions on Property Finance that you’d like answered? Simply call us on 1300 97 60 60 to see how we can assist you!
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