Home Loans

Home Loans Apt Mortgages

Buying a house?

Buying a house requires a great deal of planning and preparation, be it a unit or a house. It will likely be the biggest financial undertaking you will go through. Whether it is buying your first home, upgrading to a better and bigger property, or getting a refinance, we support you through the entire process.

Choosing a home loan

Returning from work to your own home. Sounds Great! Correct. However this feeling may remain a distinct reality if you have to save up the entire sum of money required to purchase a house. This is where home loans come to the rescue. The home loans make the dream of ‘owning your own home’ become a reality.

Depending upon your financial circumstances, the bank may agree to pitch in some part of the money required to purchase a property. This gives you the opportunity to possess a house that you may call your own. The amount that the bank lends you is called a ‘Home Loan’. When you buy an established property, there may be additional costs you may need to consider apart from the value of the property.

For instance, the stamp duty paid on the purchase, some necessary renovations or improvements you may need to undertake to make the house more comfortable to your liking. The costs add up and considering everything can drain out your savings and that is where a home loan comes to your aid.

You may be even having your home constructed. This may involve a number of factors to consider like government regulations, building restrictions, architects, interior designers and builders. A suitable loan can support you in your land and construction costs. We help you sift through the plethora of options available to you so that you can choose the one better for you.

Negotiate Low Mortgage Rate

We may be able to negotiate an even lower rate.

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In Calculators and Financial Tools

Types of home loans

Fixed Loans

Simply put, fixed home loans have a fixed interest rate for a certain period of time. Fixing your interest rate removes the element of surprise as your repayment amount remains the same and does not fluctuate with the changing market conditions. Most common terms of Fixed rate are for 1 year, 2, and 3 years.

Split home loan

You have the liberty to choose between a fixed rate and a variable rate. However, if you want you may opt for a mixture of the two as well, known as a split loan. A split loan is the one where you divide the entire loan into two or more parts. You may choose any combination as long as the structure falls within the bank’s guidelines. For example, you may decide to have 3 splits for 2 years fixed rate, 4 years fixed rate, and a variable rate (or any conceivable structure). Values attributed to the each split must add up to the full loan amount. As each split is treated as a different loan account hence you have to make different repayments one repayment attributed to each split. It may sometimes become complicated to manage a split home loan. The most common form of a split loan is that of two splits, with half being a variable and the other half being fixed.

Variable Loans

In a variable home loan, interest rates vary over a period of time. The interest rate charged to your loan account is determined by the prevailing monetary policies of the Reserve Bank of Australia. The Reserve Bank of Australia sets the official cash rate and your home loan lender charges a certain margin over this cash rate. The resultant interest rate is known as the Variable rate you pay the repayments on. You can enjoy the advantage of lower repayments whenever the cash rate falls while when the cash rate rises you may have to pay a higher repayment. In a falling interest rate market, variable rates are usually higher than their fixed counterparts and vice versa.

Home Mortgage Calculator

Repayment Types

Interest only loans

Interest only loans include repayments that only comprise of the interest, unlike other loan types. The banks may allow the clients to choose a certain number of years from the total loan term to go as Interest only (usually not more than 15, most common being 1-5 years). This means during the interest only period the bank will not demand the clients to repay any principal amount in the loan. The bank charges only the interest accrued at the end of the month. This type of repayment type is selected by the clients when they feel that they may need more cash flow in the initial few years of taking out the loan in order to decorate their newly acquired possession. This results in the clients having an increased cash flow during those initial years of the home loan as they need to pay only the interest amount. However, it should be noted that after the expiry of the interest only period, the outstanding Principal will then be concentrated in a much shorter time frame resulting in considerably high monthly installment.

Medico Professionals Offer – LMI/LDP Waiver

Medico is a programme tailored for medical professionals, where the lenders waive the LMI requirement for qualified borrowers. LMI is usually required by lenders when borrowers have a deposit of less than 20% of the property's value. However, in Medico programs, the bank waives the LMI requirement, allowing qualified borrowers to purchase a home with a smaller deposit without having to pay LMI.

Principal and Interest (P&I)

In Principal and Interest loans the repayments made comprise of both the Interest and the principal. This sort of repayment results in consistent amortisation of the outstanding principal amount over the term of the loan. As the main goal in taking out a home loan is to have it fully repaid during the working life of an individual, hence thisis the most preferred type of a repayment amongst home loan borrowers.

Our mortgage brokers make home loans easy

At Apt Mortgages, we sit down with you and listen to your needs and wants, mark your short term and medium term goals and understand your financial circumstances. Then we go back to the drawing board, analyse and evaluate all we have gathered from the meeting and match those with the products available from the lenders on our panel just to make sure that the selected product is ‘apt’ for you.

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