GET MY QUICK QUOTE

Frequently Asked Questions

Ask a QUESTION

I acknowledge and accept the Terms & Conditions

Frequently Asked Questions

This varies according to the type of loan you are taking out, the amount you are borrowing and the lender’s policy, but in general you should aim to save a deposit of between 10 to 20 percent of the purchase price.

The more deposit you have saved, the less you’ll need to borrow, which means you make lower repayments and pay less interest.

This depends on factors like the size of your income and deposit, but many lenders require a maximum of 90 percent Loan-to-Valuation Ration (LVR), which means that you can borrow up to 90 percent of the purchase price, but you will have to supply evidence of your ability to save at least 5 percent of the value of the property (‘genuine savings’).

This Government assistance program provides you with a one-off payment to use towards the deposit for your first home. The grant amount varies from state to state, so check with Finance Mutual Australia. We can help you apply for the grant and research any other Government based incentives you may be eligible for.

Your credit will be checked as part of the loan process, so you may find it harder to secure a loan if you haven’t paid your bills, skipped payments or exceeded credit card limits.

Contact Finance Mutual Australia for assistance in accessing your credit history, as you might be able to improve your rating before you apply for a loan.

There are several factors to consider, including your current financial situation, your goals and how long you intend to keep your home. Finance Mutual Australia can work with you to help evaluate your choices and find a solution that meets your needs both now and in the future.

These are generally the “no-frills” version of the Standard Variable home loan, and so have some limitations in terms of redraws, additional payments and other options, but therefore also generally come with a cheaper interest rate.

These are generally the “no-frills” version of the Standard Variable home loan, and so have some limitations in terms of redraws, additional payments and other options, but therefore also generally come with a cheaper interest rate.

These allow you to fix the interest rate on the home loan for a period of time, generally between 1 and 5 years, but some lenders will go as high as 10 or 15 years. The main advantage is the certainty of loan payment amounts for the fixed term, but conversely there are often limitations on additional payments and other options.

These are the most flexible of all Home Loans and if used correctly can be very advantageous in minimizing interest. Rather than a monthly payment of interest and principal, a line of credit provides for essentially an overdraft limit in which to deposit and withdraw as required. However care must be taken to ensure this type of loan is suitable and used effectively.

Today most borrowers should regularly review their Home Loan package to ensure they are achieving the best possible deal available. Depending on your needs or motivation, refinancing can often provide a better outcome for improving cash flow, or debt reduction strategies.

A split loan is a combination of some of the above – so rather simply having one home loan under one set of terms, it can be split into say a Standard Variable, a Fixed and a Line of Credit, in order to gain maximum benefit from all of the options available.

By far the most common Home Loan amongst Australian borrowers and offered by a wide range of Bank and non-Bank lenders. More flexibility than a fixed rate home loan, such as large additional repayments, but the interest rate will move up and down with market forces.

Contact Us