Everything you need to know as a first home buyer
At the lending Department our process is simple, easy to understand and most importantly all about you. We are proud professionals and experts in lending.
When assessing a loan application for first home buyers, lenders will consider income, your credit history and loan to value ratio.
Factors to consider when upgrading or downsizing
Buying property when you already own a home can be tricky to navigate. There are several factors to consider. Do you need to sell first? How does it work if you buy & sell at the same time? What happens if you buy before selling? Can you afford to keep both properties?
These are all difficult questions to answer, which depend on a number of factors including your personal circumstance, the current property market and the banks appetite for lending at the time. We can talk you through all of these scenarios and work out which is best for you.
In the meantime, read below to find out some of the terms which are important to know and understand through the process.
When assessing a loan all lenders will run a Credit Check to verify your credit history. This will show previously unpaid loans and bills that have been sent to baycorp. A credit check will also show if you have been declared bankrupt in the past.
We can run a Credit Check for you before your loan application is sent to a lender, that way we can ensure there are no surprises. For more information, please don’t hesitate to contact us.
The LVR stands for Loan to Value Ratio, which simply means loan amount divided by purchase price – and represents the maximum percentage of the purchase price you are able to borrow.
In 2013 the Reserve Bank acted to restrict bank lending to LVR of 80%. That meant that purchasers would need to have a deposit of 20%.This restriction has recently been relaxed in the case of new constructions, and a maximum LVR of 90% applies to new houses. We do have lenders who will look at 90% LVR loans even for existing houses.
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Our Process
01
Initial Conversation
The initial conversation is where we get to know you. Who you are, what your goals are and how we can help. By the end of this meeting you should have a clear idea of what our plan is and how we are able to assist you.
02
Information Gathering
This is where we flesh out the details from our first conversation, you will complete a Fact Find and Statement of Position and provide all the supporting documentation necessary, we will compile this into a clear loan application.
03
Approach Lenders
We then submit this application to the bank on your behalf and work through any issues until we have an approval. If there are any conditions on this approval, we will work with you to have them satisfied so that you can purchase unconditionally.
04
Structure and Rates
This is where we negotiate interest rates on your behalf, then assist you in deciding how you will structure your lending. The correct loan structure can save you thousands of dollars over the life of the loan, so we take this meeting very seriously.
05
Ongoing Service
Our commitment to you does not end when your loan is settled. We will be here to look after your financial needs for the rest of your life. We will assist you when your interest rates need to be re-fixed, or if you have a change of circumstance.
Expert advice you can trust
We’re committed to providing you with a personal and simplified approach to lending. Our experienced financial advisers will not only save you time and money but will ensure the entire process is straight-forward and easily understood.
Smart lending, try out loan calculator today.
Our easy to use loan calculator makes understanding your loan obligations simple. Break down what your estimated repayments could be as well as the length of your repayment terms.