Most lenders ask for 5% of the property value as a deposit is the general rule of thumb. However, it’s important you factor in purchase costs like stamp duty, conveyancing and potentially lenders mortgage insurance (LMI).
The bigger deposit you can save the better as it means we will be able to find you more options to choose from and overall it will make the approval process easier.
You can always put in a subject to sale offer, or you may like to consider a bridging loan. Bridging loans enable you to buy a new home before your existing home is sold. It can be tricky and has some risks, so it’s really something you need to discuss with us and we’ll find you the safest options.
If you’re financially able to – then yes, definitely! This could be your start to an investment portfolio. We will look through your financials and evaluate your ability to make repayments on both loans, including any potential rental income your new investment property may be able to contribute to the repayment amounts.
While this is a slightly different scenario to buying your first home the same requirements exist when proving you can foot the bill.
Your income and current debts will be a key factor and any growth in value on your current home may put you in a better borrowing position with more access to products and potential discounts. Try out our borrowing calculator to punch some initial borrowing power figures.
Variable interest rates move up and down and normally relate to changes in official interest rates set by the Reserve Bank of Australia (RBA). A variable rate loan is beneficial when rates are on the decline or you need flexibility in your home loan.
Fixed interest rates don’t move. You can set (fix!) your rate for a particular period of time, normally between one and five years, and is most beneficial when interest rates are on the rise or want certainty in repayments.