Nearly everyone dreams about owning a house, maybe one by the beach, a cute apartment in the city, or a duplex in the suburbs. Whatever the dream is, owning a property is now closer to reality than before. Housing in Brisbane costs roughly around $250,000 to $500,000 depending on the property. Many companies offer home loans but at different interest rates that may not suit everyone’s budget. A home loan broker in Brisbane can find the best loans that are affordable by their client.
Loans for the Self-Employed
Loan companies usually require self-employed people to have at least three years of employment history. But, there are loan companies that offer loans to self-employed people with shorter employment histories as well. They even have up to 70% LVR (loan to value ratio) for housing loans. Loan brokers for housing loans can help self-employed individuals attain their dream by giving them extensive information about the different loans available in the market.
Any housing loan will require the following documents:
- Filled out application forms with adequate proofs of ID and assets (if any).
- Payslips of the last three salaries.
- Bank statement of three months (if employed for three months) and tax returns of 2 years and NOA’s or BAS statements for Low Doc Loans (if employment is longer than two years).
Pre-Approved Loans
Individuals with a clean credit history are eligible for pre-approved housing loans. These loans require only a few documents for processing, and the loan processing takes only a few days. This loan requires a few additional documents:
- Credit-related documents: monthly credit payments, records of previous loans (if any), mortgage records (if any). These documents help the loan company tabulate credit scores if the individual doesn’t have a credit certificate already.
- Other documents – rent/lease agreements, alimony or child-support records, and other liability documents.
Pre-approved loans usually come at high LVR rates as well.
Owner-Occupied Loans
Owner-occupied loans apply to those properties where the owner will be residing themselves. The loan-buyer has to occupy the property for a minimum of 12 months. These loans come with lower interest rates and penalties. Owner-occupied housing loans have good LVRs as well.
Property Investment Loans
A property investment loan is the exact opposite of owner-occupied loans. These loans help people invest in properties rather than reside there themselves. The property is an investment. These loans are usually taken on large complexes and in bulk amounts. Depending on the loan company, they can have varying interest rates and LVRs.
Refinancing Home Loans
Refinancing of home loans allows for an individual to take an additional loan to clear off other debts. People opt for refinancing as a refinanced loan may offer lower interest rates or an additional amount to their existing home loans. Home loan brokers play a vital role when an individual is trying to get a refinanced loan. They consolidate all their debts on the individual’s behalf. The consolidation of debts allows the person to take one loan to pay off all their other debt. Refinancing of home loans requires a few additional documents:
- Credit and mortgage documents.
- Extra security or collateral for the refinanced loan amount.
Loan brokers use these documents to secure a refinanced home loan at good LVRs.
Bad Credit Home Loans
Home loan brokers assess a person’s credit history and give them options based on their credit history. Home loan brokers have access to and knowledge of more than a thousand home loan products. Their in-depth knowledge helps people who may have had a bad credit history, get loans.
Home loans in Brisbane average at 3% to 5% per annum. Depending on the loan amount and LVR of the loan, this can amount to a hefty sum. A home loan broker in Brisbane can help individuals find the right loan for their income or budget, making their dream home a reality.
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Julian Carter is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.