Here are seven questions to ask your mortgage lender in Australia.
1. How much can I borrow?
Depending on your income and what you are buying, you can use a Borrowing Power Calculator to receive an indicative borrowing amount. You simply input your income and monthly commitments and the calculator will give you an indicative borrowing amount.
2. What costs are involved in buying a property?
You will need to set aside funds for a building and pest inspection of the property to ensure it is sound, plus legal costs, government stamp duty, lender's fees and other loan set-up costs.
3. Is the home loan with the lowest interest rate the best?
It depends on your needs. Home loans with slightly higher interest rates generally offer more flexibility and features that may be worth paying for, for example, free redraw.
4. Can I ensure my home loan repayments do not change?
Yes, if you want to ensure your home loan repayments do not change you can take out a Fixed Rate home loan option for a term of 2, 3 or 5 years. This will ensure that for the period you choose your loan repayments will not change when the variable rate changes.
5. Can I make extra repayments and access these funds if I need to?
Yes, in most cases you can but this depends on the product. Check the individual mortgage product features for full details.
6. What happens if my interest rate goes up or down?
If you have a variable rate home loan and your rate goes up or down, we will recalculate your minimum loan repayment based on the new rate. We will write to you to advise your new repayment. If you have a fixed rate home loan, your rate and repayments will not change during the period of the fixed rate agreement.
7. What if I need extra money?
You can apply for a loan increase which can be useful for things such as a new car, holiday, home improvements, children's education or a holiday, all at home loan interest rates.
