Faq

Before banks grant a Home Loan, they do some checks of their own called due diligence. You have to be eligible to get that Home Loan. Be sure to check the important eligibility criteria :

1. Age: Natural person (over the age of 18). Younger the age of borrower, greater are the chances of getting a home loan .

2. Job Stability: You must be gainfully employed either as salaried or as self employed.

3. Income Level: A higher monthly income indicates the ability to pay higher DSRs. Therefore, the probability of repaying the loan on time is high. The present income status and past financial track record are considered to ascertain financial stability.

4. Credit Rating: If you have a good credit score, greater are the chances of getting a loan with flexibility on amount and interest rates. A low credit score indicates high outstanding loans and maybe defaults, which can lead to a rejection of the loan.

Note: Please refer to Lending Guide for details.

Following are the important documents required for loan application:

• 1.)  Proof of Identification (Driver’s License, Passport and Medicare Card)
• 2.)  Proof of Income (Payslips, Income Statement for Individual and Company financials for Company)
• 3.)  Proof of Funds (Bank statements)
• 4.)  Proof of Commitments (Home Loan, Personal/Car, Credit Card Statements)
• 5.)  Proof of Property Ownership (Copy of Title, Council Rates)
• 6.)  Retirement Strategy (Superannuation Statement)

Home loan can primarily be classified into two categories on the basis of interest rates i.e. Fixed rate and Variable rate of interest.

Fixed interest rate

A fixed interest rate home loan is one where your interest rate is locked in (i.e. fixed) for a certain period, typically between one to five years. During the time your interest rate is fixed, both your interest rate and your required repayments won’t change.

Variable interest rate

A variable interest rate home loan, on the other hand, can change at any time. Lenders may increase or decrease the interest rate attached to the loan. The interest rate may change in response to decisions made by the Reserve Bank of Australia, as well as other factors. Your required minimum repayment amount will increase if interest rates go up, and decrease if interest rates fall.