Finance

Simplifying the loan process.

Step by Step

Buying a home can be stressful and confusing

Everyones financial situation and requirements are different. Individual people, couples or families require tailored loan services to best achieve their goal. We are totally independent and committed to providing the most appropriate residential finance for your situation.

LOAN TYPES

The Different Types of Home Loans

Start with the correct loan

Which residential home loan structure is best? The best home loan type for your personal situation depends on a number of factors, such as your individual and/or family circumstance, loan amount, lifestyle, future plans, and chosen lender. We can take all the hassle out of this and provide options on the right loan for you. Different options are discussed below:

Different types of home loans

Fixed

Fixed interest rate usually between 1-5 years. Typically has limitations on making extra repayments. Suitable for Individuals who want security and stability with their repayment amounts.

Variable

A variable interest rate that fluctuates over time depending on your lender. Extra added features such as offset accounts, ability to pay extra lump sum amounts, no extra repayment penalties.

Basic

A simple variable product, typically most flexible, can make extra repayments and access extra money paid through redraw. Very low or no ongoing fees, often perfect for first home buyers.

Split

A split (part fixed and part variable) home loan. Benefits from the security and flexibility of having both fixed and variable rates in parts, receive the benefits of both loans.

Offset

Allows savings in your account to be offset against your home loan. For example, if you have a $400,000 home loan and $50,000 savings in your offset account, you’re only paying interest on $350,000.

Specialist

Loans in which lenders mortgage insurance (LMI) is waived with only a 10% deposit rather than the usual 20% deposit needed to avoid LMI. Offered to professional clients that meet lenders eligibility requirements

Frequently Asked Questions

Some of your most common questions answered

Are there first home buyer benefits in WA?


Yes. If you are building or moving into a place that has never been lived in, you may be eligible for a $10,000 first home owner’s grant. If buying established, you will be exempt from stamp duty on homes worth $430,000 or less (sliding scale applies for homes valued at $430,001 and above).



How much can I borrow?


You should always borrow within your means. Your borrowing capacity differs between all lenders and is assessed based on your income vs expenses.

Personal loans, car loans, credit cards, and store cards attract monthly repayments that cut into your borrowing capacity heavily. Even if you hold a credit card with nothing owing, the lender will view that liability as maxed out. These are all things to consider when assessing how much you can borrow.



How long does it take for a loan to get approved?


This depends on the lender and their current turnaround times. Keystart usually take 1 week for pre-approval and another 2 weeks for full approval. All other lenders usually take 1 week for pre-approval and 1-2 weeks for full approval.

What are the benefits of obtaining a pre-approval?


It’s free and usually valid for 3 months. It identifies your buying budget and agents consider you more as a serious buyer. It also helps with negotiating and gives you bargaining power, allowing you to shop with confidence.



What property should I buy?


A house, apartment, townhouse, unit, new build or off-plan, there are pros and cons for all different types of property. Working backwards often helps you make a more suitable decision. Looking at affordability, lifestyle, location preferences, where you work, and short-long term property goals can help narrow this down.



When is the right time to talk to a broker?


The sooner the better! Before the property search you will want to know how much you will need as a deposit, your borrowing capacity and how much mortgage repayments would be. Depending on your current financial situation there may be options to consider setting you on the right path for the near future – Such as a savings plan, setting financial goals, debt consolidation, and changing current banking structure.

I have little to no deposit, can I still buy?


Little deposit – Yes. There are many lender options that require minimum deposit amounts ranging from 2-10% of the property. However, the bigger your deposit the more lender options you will have.

No deposit – Yes. With the help of a family member going guarantor, a loan can be secured without a deposit.



What are the costs involved when buying a property?


Overall costs include may include: Mortgage insurance, stamp duty, conveyancing, building & pest inspection reports, building & home contents insurance, title registration, mortgage registration, monthly or annual bank fees, application, and settlement fees.



By paying extra on my home loan repayments, how much time and money can I save?


For a loan value of $400,000 at a rate of 4% over 30 years, typical minimum monthly repayments would be $1,910. Making larger fortnightly repayments instead of monthly ones can save you thousands. If financially possible, take your monthly repayment, divide it by 2 and add $100 for a fortnightly repayment. If you can, you will pay off your loan 8 years and 1 Month sooner and save $86,601! 

Movement Finance Home Loans Perth
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