A Quick Q&A With A Mortgage Broker In North Brisbane.

 

In June 2024, Our Team saw a Rise In Some Common Questions From First Home Buyers In And Around Brisbane Northside. Today, We’re Going To List Some Of The Most Common Questions With Our Answers.

If you’re looking into buying your first home, refinancing your home, collecting home loan quotes or wondering what different mortgage buzzwords mean, you’ve come to the right place!

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Does HECS Affect Home Loan Application?

Q: I have a HECS debt. Can I still get a home loan?

A: Yes, you can. Your HECS debt does affect your application. Lenders consider all debts. They look at your income and expenses. HECS repayments reduce your borrowing capacity.

Q: How much will my borrowing capacity be reduced?

A: It varies. Lenders calculate based on your repayment plan. More debt means lower borrowing capacity. It’s wise to consult with a broker. They can give a clearer picture.

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What is LVR?

Q: I’ve heard of LVR. What is it?

A: LVR stands for Loan to Value Ratio. It’s a measure used by lenders. It shows the loan amount against the property value. For example, a $400,000 loan on a $500,000 house is an 80% LVR.

Q: Why is LVR important?

A: It impacts your loan. A higher LVR means higher risk for lenders. You might need Lenders Mortgage Insurance (LMI). Lower LVRs can get better interest rates.

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What to Look for When Comparing Home Loans

Q: What should I compare in home loans?

A: Look at interest rates first. Also, consider fees and features. Offset accounts and redraw facilities can save money. Compare loan terms too.

Q: Anything else?

A: Yes, flexibility. Can you make extra repayments? Is there a honeymoon period? These features affect long-term costs. Seek advice from a broker.

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Mortgage Rates in Queensland and Brisbane

Q: What are the current mortgage rates in Queensland?

A: Rates vary. As of June 2024, they range from 5% to 6.5%. Fixed and variable rates differ. Always check the latest rates with lenders.

Q: How do rates in Brisbane compare?

A: They are similar. Brisbane rates align with state averages. However, city-specific deals exist. A local broker, like the team at North Brisbane Mortgage Brokers can find the best rates – it’s what we do best!

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Reverse Mortgages

Q: What is a reverse mortgage?

A: It’s a loan for seniors. Homeowners aged 60+ can borrow against their home. No repayments are needed until the home is sold or the owner passes away.

Q: Is it a good option?

A: It depends. It can provide financial relief. But, interest adds up over time. It reduces home equity. Seek advice before deciding.

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Looking into Apartments in Brisbane

Q: What are Code Apartments?

A: They’re new developments. Code Apartments offer modern living. They are in prime Brisbane locations. Ideal for young couples and investors.

Q: Are they good investments?

A: Generally, yes. Location and quality are key. They attract tenants easily. Check the developer’s reputation too.

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Different Types of Home Insurance

Q: What home insurance types are there?

A: Three main types. Building insurance covers the structure. Contents insurance covers belongings. Combined policies cover both.

Q: Should I get all three?

A: It’s wise. Protect your investment fully. Combined policies often offer discounts. Compare different insurers for the best deal.

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Building a House in Brisbane or Buying a House

Q: Should I build or buy in Brisbane?

A: Both have pros. Building lets you customise. It may offer grants. Buying is quicker. Established homes have matured gardens and neighbourhoods.

Q: Which is cheaper?

A: It varies. Land costs and building prices differ. Building can be more affordable in new suburbs. Buying might be better in established areas.

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How Much Deposit Do I Need to Buy a House?

Q: What deposit do I need?

A: Aim for 20%. This avoids Lenders Mortgage Insurance (LMI). Some lenders accept less. A 5% deposit is possible but costs more in the long run.

Q: Are there low deposit options?

A: Yes. Some loans need only 5% or 10%. First Home Owner Grants (FHOG) help too. Check for specific schemes in Queensland.

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Long Term Deposit Rates

Q: What are long term deposit rates?

A: Rates for long-term deposits are higher. They range from 4% to 5% for five-year terms. Check different banks for the best deals.

Q: Are they worth it?

A: For some, yes. They offer stable returns. Great for risk-averse savers. But, you can’t access the money easily. Plan accordingly.

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Low Deposit Home Loan Options

Q: Are there low deposit home loans?

A: Yes. Many lenders offer these. Some need just 5%. They are ideal for first-time buyers. But, they come with higher interest rates and LMI.

Q: Are they risky?

A: They can be. Higher LVR means higher repayments. Ensure you can afford it. Consult a broker for advice.

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No Deposit Home Loans

Q: Can I get a home loan with no deposit?

A: It’s tough but possible. Some lenders offer 100% loans. Often, a guarantor is needed. These loans have strict criteria.

Q: Should I consider it?

A: Carefully. No deposit means higher repayments. Interest rates are higher too. Discuss options with your trusted broker.

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Home Equity Meaning

Q: What is home equity?

A: It’s your ownership share. The difference between your home’s value and loan balance. As you repay, your equity grows.

Q: Why is equity important?

A: It can fund renovations. Or, use it for investments. Equity can also secure better loan terms. Monitor it as you repay.

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Grants Available in Queensland for Home Buyers

Q: Are there grants for home buyers in Queensland?

A: Yes, many. The First Home Owner Grant (FHOG) offers $15,000. It’s for new homes under $750,000. Regional grants are available too.

Q: How do I apply?

A: Through your lender. Or, apply directly with the Office of State Revenue. Check eligibility criteria beforehand. The team here at North Brisbane Mortgage Brokers have helped many locals with this!

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Remember, buying a home is a big step. Consult with your friendly, local mortgage broker to get personalised advice. Every circumstance is different and we understand that. We’ve helped many locals on their milestone achievement of buying their first house or apartment and we pride ourselves on making the experience a happy one for you to remember! So, don’t stress or succumb to long nights of Googling different rates, schemes, tips and lenders – feel free to reach out to us at anytime, we’d love to help!