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Researching what sort of loan will suit your budget and lifestyle isn't easy, "Finding the right loan" will give you an overview of the different types of loans so you can see the whole picture.
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Some questions to ask your lender



When you speak with a lender, make sure to have a list of questions on hand, including a question or two about pre-approval.

As a first home buyer it is a smart idea to arrange a pre-approved home loan before you start house hunting. This will give you an indication of your price range when looking for your first property, and it also reassures real estate agents that you are serious about buying a property.

Questions you should ask


  • What percentage of the property value can be borrowed?
  • Will I have to take out lenders mortgage insurance?
  • What are the types of home loans available?
  • Which home loan will suit my needs and lifestyle?
  • Which home loan offers the best variable/fixed interest rate?
  • What flexibility does the home loan offer (i.e. credit card,
     
redraw facility, ATMs, etc.)?
  • Will the lender give pre-approval of my home loan with no upfront fees?

Questions a Home Loan Lender may ask


Given that a home loan is such a huge outlay, the lender will require many questions to be answered about your financial situation. They will do a credit check to ensure you are legible for the home loan.

Questions may include:
  • What is your income?
  • What are your existing assets?
  • What are your current liabilities (personal loans, credit cards, store cards, etc.)?
  • Do you have children or other dependants?
  • How long have you been at your current address?
  • How long have you been in your current job?

Documentation needed when applying for a Home Loan


  • If you have an employer, your most recent group certificate.
  • Your most recent pay slip that includes a year to date (YTD) figure.
  • A letter from your employer detailing your commencement date, position, current remuneration and type of employment (full time, part time, etc).
  • If self-employed, you will be required to present the past two years’ tax returns and your accountant’s details. Some lenders also require a profit and loss statement, which has to be certified by a registered accountant.
  • If you are employed or self-employed, bank saving details. This comprises bank statements of saving and passbook accounts; investment documents including shares and managed funds; personal loan details; credit card debts (up to six months of statements should be produced).
  • Life insurance policy details.
  • Superannuation details.
  • Approximate value of your other assets, including car, jewellery, furniture.
Check with your home loan consultant, who will be able to tell you exactly what is required for your application.
  
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Home Loan Pre Approval - How Long Does It Take?


Once you have supplied your lender with all documentation, a home loan pre-approval usually takes a few days. A pre-approval will let you know if you will be able to borrow the funds you require for your first home and is based on the information provided and usually subject to a list of conditions, such as the property being acceptable for them to lend against.

Credit Reference Check
The information contained in a credit file can be used to determine a person’s credit-worthiness when files are kept for people and businesses which have been credit-active during the past seven years. Banks, retailers and credit providers use the data, along with the information you provide to them, to determine whether to lend you money or not. Details include:
  • When credit was applied for
  • In whose name the credit was sought
  • From what body or institution the amount was sought It also includes information necessary to identify you as well as information of relevance for credit assessment purposes, such as:
  • Personal details (name, address, sex, date of birth, driver’s licence number)
  • Overdue accounts
  • Bankruptcy details
  • Court judgements
  • No credit provider is allowed to access a consumer credit file without the permission of the applicable individual.



To find out

what type of loans will suits your needs and lifestyle

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The real cost of buying