There are several loan options to take into account when considering a home loan, including variable interest rate loans (standard and basic), fixed interest rate loans, and lines of credit (equity loans). See the details of each types of home loan below. 

Bridging Loan   

A bridging loan is something you might want to check into if you're buying a new home but still trying to sell your old one.  In order to help you get through this unpleasant period while you move to your new house, a bridging loan is a brief-term loan that gives you up to 6 months to sell the current property.  

Construction Loan

A construction loan is a special kind of loan that aids in addressing the distinct requirements of recurring payments during the construction process. The main distinction between a construction loan and a standard home loan is that a construction loan allows you to make periodic withdrawals from the loan balance, whereas a standard home loan is provided to the borrower as a single lump payment. 

Non-conforming Loan

Some people with bad credit may find it difficult to get approved for a conventional home loan because the lender views them as a high risk. Not all hope is lost though, as a non-conforming loan enables these borrowers to get a loan because lenders can utilize alternative proof of a borrower’s capacity to repay a loan. A larger deposit is frequently required as proof that you can pay back the loan, and a higher interest is necessary to make up for the lender’s risk. 

Although some individuals would prefer the security of knowing exactly how much their repayments will be, they risk missing out on declining interest rates as the market evolves. 

Interest Only Home Loan

You have the option of paying simply the interest on a loan from a lender or bank, or both the interest and the principal (the amount borrowed). Your repayments will be significantly reduced if you decide to pay simply the interest on the loa, freeing up money for things like renovations and other costs. However, as interest-only loans have a short life of up to 5 years, a lender or bank would always consider your capacity to repay both interest and principle in order to qualify for the loan. 

Self-employed Home Loans 

Being self-employed might add a few extra stages to the home loan application process, making it more difficult. You should have the following items available when applying for a house loan as a general rule:

- Your ABN must be registered for at least two years, according to this evidence.

- Tax assessment notices and the last two years' worth of personal and business tax returns

- Two years' worth of profit and loss statements and a balance sheet

- Information about any external liabilities, including any leases, hire-purchase agreements, overdrafts, business loans, and/or guarantees

- Bank statements from your company's last month

Split Rate 

With a split rate loan, you can fix a portion of the loan while leaving the remaining amount variable. You may even decide how much money you want to dedicate to each, giving you the best of both worlds: the security that a fixed rate offers, as well as the ability to profit from the potential for rate drops. 

If you are looking to buy a home in Narre Warren, Berwick, Cranbourne or the surrounding areas, Only Estate Agents are here to help. We are Narre Warren's trusted real estate agents with many years of experience.

We can help you find the right property at a price that fit your budget. Why not give a call to discuss your requirements? Call 8786 8889 now for an appointment.