Finance Broker Australia

29 April 2008

Important changes from FirstMac

Interest rate increases

Due to continued deterioration in global credit markets and pressure on the cost of funds, FirstMac has had to adjust its interest rates. While FirstMac has passed on rate increases over recent months to help recover higher wholesale funding costs, FirstMac are continuing to monitor the situation to ensure the longer term viability of their busines.

1. Existing borrower rates

How Much Can You Borrow Home Loan Calculator

Calculators cannot always take into account your unique personal circumstances.

Contact a finance broker to calculate your options in more detail.

Calculator powered by Artog

Home loans are offered with many different options and add on features.

Listing which ones are important or optional will help you shortlist potential lenders and home loan types.

Home Loan Types.

• Variable interest rate home loan
• Fixed interest rate home loan
• Line of Credit home loan
• Introductory rate home loan
• Reverse Mortgage

Income verification levels available for home loans are as follows.

• Full documentation loan
• Low documentation loan, low doc
• No documentation loan, no doc

Full details about the actual property to be purchased or refinaced will help in determining which loan and lenders may be suitable.

Property details required are as follows.

• Property type, house, townhouse, unit, apartment, flat, villa, studio, serviced apartment or vacant land etc
• Property zoning, residential, rural, commercial or industrial etc
• Propery location, CBD, metropolitan, rural centre, rural etc
• Property size, units, studios etc M2 and land areas in hectares if applicable
• Propert purchase price if purchasing

All income types should be considered when applying for a home loan. Different lenders may not accept some types of income or may only accept a lesser percentage of certain income types.

Some types of income to declare are as follows.

• PAYG income, wages or salary permanent full-time employment 2 years +
• PAYG income, wages or salary permanent part-time employment less than 1 year
• PAYG income, wages or salary permanent part-time employment less than 2 years +
• PAYG income, wages or salary permanent part-time employment 2 years +

Providing a list of assets and approximate valeus of these assets will help a lender assess a home loan application.

A list of assets could include any of the following with value estimates if applicable.

• Property
• Bank account balance
• Business value
• Furniture and home contents value
• Deposit already paid towards purchase
• Stocks, Shares and other investments
• Superannuation
• Motor Vehicles
• Business plant and equipment
• Other assets

The next group of information required for preparing a home loan application is the liabilities each applicant has.

These liabilities can be grouped into 2 parts, liabilities that will continue following settlement of a proposed home loan and liabilities that will cease following settlement.

For example a home loan applicant who is presently renting and is applting for a home loan to purchase a home to live in has a rent liability that will cease following settlement of the proposed loan.

Liabilities - specify the frequency such as weekly, monthly, annually etc.

The first step in choosing a home loan and subsequently applying for a home loan is to gather personal details for each applicant and guarantor if applicable as follows.

• Title
• Surname
• First Name
• Middle Name
• Date of Birth
• Gender
• Driver Licence Number
• Marital Status
• Number of dependants per application and their ages
• Home Phone
• Work Phone
• Mobile Phone
• Email
• Residential address/s for the past 2 - 3 years
• Occupation

Choosing and applying for a home loan requires a specific range of information as follows.

• Personal information for all applicants
• Liabilities for all applicants
• Assets owned by all applicants
• Property to be purchased details
• Home loan requirements

This information will enable a finance broker to shortlist a range of loan and or lender options for a home loan applicant to choose from.