FAQs
If you are over 18, and meet the guidelines and criteria for a home loan, you can apply with Sanford Finance for a home loan.
How much you can borrow depends entirely on your current financial standing. Lenders will take a number of factors into account when deciding how much they are willing to lend you for a home loan. The most important thing is making sure that you get the home loan that you can afford.
A good first step is to use our How Much Can I Borrow� calculator to determine your borrowing power.
Pre-approval happens before you have found a property. It is based on your current financial circumstances and it is a document confirming that you can afford the loan that you are applying for. It is not a binding document and is subject to things like your verification and proof of income.
This depends entirely on you. It is possible to get a home loan without a deposit at all, although that path has various risks. Most lenders will encourage you to have a deposit of at least 10%. You can work this out by shopping around similar or like properties in the areas you are interested. However, if you can manage a larger deposit this is a very attractive option. The larger the deposit you have is, the more you might be offered in a loan, or you can fast-track the time frame of your home loan.
It is important to fully understand and consider your options. Depending on the level of financial risk you are willing to take, you might be more or less willing to take a gamble with interest rates remaining low and so a variable loan will be perfect. Some people would prefer the safety net and predictability of a fixed rate, where they know exactly what they’ll pay over the life of the loan However, when making a decision between a fixed and a variable interest rate home loan it doesn’t have to be a choice of one or the other. Most lenders will offer loans that are fixed for a period, and then revert to a variable interest rate. This is an extremely attractive option for lots of property buyers because they get the best of both worlds; a split loan means if the Reserve Banks’ interest rate rises the fixed part of your loan remains so, but if the RBA interest rate drops you will pay less on the variable portion.
At Sanford Finance we are here to help you through this process. We have years of experience in this process and will make sure that you have everything you need for your home loan application. You can expect to fill out our standard forms confirming your identity, proof of your income, and the application to a lender for a loan. If you’re applying for the First Home Buyer’s Grant we will guide you through this process as well.
If you are a permanent resident of Australia, over 18 years of age, and have never previously owned a property, whether partially or in full, you may be eligible for the First Home Buyer’s Grant. Can I repay my loan early? The answer to this question depends on the loan that you have. On most variable interest rate home loans you will have the option to make larger, extra, or lump sum repayments towards your loan. On a fixed interest rate loan you will often incur large fees and penalties for doing so. If the ability to pay above your necessary repayments is important to you, then make sure the loan you apply for allows for it.
If you are having trouble managing your loan, there are a number of options available to you. Some lenders will allow what is called a ‘repayment holiday’ if you have been paying above your repayments and are ahead. Sometimes you can also use a redraw facility on your loan which allows you to borrow back the money that you’ve paid in advance. There are also counselling services available who can help you if you are experiencing severe financial difficulty.
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