Wondering how you can manage to finance that Perth property you’ve had your eye on? Finding the right home loan is the next step in your journey towards making your dream a reality. Read more about the top home loans in Perth here.
How do I find the best home loan for me in Perth?
The best way to find the perfect home loan for you is to research and compare the options on offer yourself. You have the best idea of your needs, preferences and budget when entering the home loan application process so, in many ways, you’re the most reliable resource when home loan hunting. Savvy is a great place to start for anyone, as our comparison tools make it easy to assess how lenders rank in the areas you find the most important. Consider areas like the type of lender you’re looking to work with in Perth and have in mind home loan rates that you don’t wish to go above, as well as must-have conditions or features.
It’s always important to bear in mind that thoroughness is the name of the game when it comes to choosing a home loan; there’s no worse feeling than signing up for a long-term financial commitment and finding out you missed out on a great deal because you didn’t dig deep enough. Alternatively, if you’d rather leave the hard work in the hands of an expert, you might consider seeking out a Perth mortgage broker to handle your home loan search. They’ll take your preferences and situation into account when compiling a list of suitable home loans for you for a fee or commission.
What choice of lenders do I have in Perth?
Like just about anywhere else in Australia, you won’t be short on home loan options in Perth. From big banks to small online lenders, you’ll be able to find a financier that suits you.
Australia’s Big Four (ANZ, Commonwealth Bank, NAB and Westpac) continue to be the most popular banks in the country and provide services across the home loan market. In Perth, local bank BankWest rival the titans of Australian banking when it comes to popularity, so they serve as an alternative closer to home. Generally, big banks like these won’t be offering you the best interest rates or conditions on the market but will excel when it comes to their accessibility (both online and in person) and variety of services.
If you’re looking for options outside of banks, credit unions function in a similar way but do contain distinct differences. The fact that they’re owned by members, rather than shareholders, mean that any profits made are plunged back into the union to facilitate rate drops and bonuses for members. Some of the most popular credit unions operating in Western Australia include Goldfields Money Limited, Collie Miners Credit Union and United Credit Union.
Online lenders will offer borrowers a different experience compared to financial institutions with physical locations. An advantage that online lenders might be able to provide is a more personalised service, catering to your specific needs and shaping your loan to suit you. Interest rates and fees also tend to be lower than those of banks. However, what you may find is that the service or scope of the loans on offer is more limited than larger providers.
Your home loan options
Making your first big step towards buying a home? It's crucial to be across your mortgage options as a first homebuyer.
Opting for a variable interest rate on your home loan means it'll fluctuate as the market moves throughout your repayment term.
On the other hand, fixing your rate locks it in for a pre-defined period. This can bring with it greater certainty around your budget.
It's important not to set and forget when it comes to your home loan. If you find a more competitive offer, it may be worth refinancing.
If you're looking to build a new house, construction loans are specifically designed to cater to the different needs associated with doing so.
A guarantor essentially acts as a safety net for your lender, as they sign onto your loan to agree to pay it off should you become unable to do so.
Purchasing a property as an investment brings with it different specifications from a lender. It's crucial to know what your options are.
Businesses big or small may wish to purchase a property for commercial purposes, which are also different from a standard loan.
Your home loan may give you an interest-only option, which allows you to exclusively pay interest on your loan for a set period.
Just because your finances may be slightly more complicated as a self-employed individual doesn't mean you can't take out a home loan.
Some lenders may allow you to apply for a home loan with alternative documents, such as tax returns, BAS and ABN registration.
Why compare home loans with Savvy?
How to maximise your approval chances for your home loan
Lenders will look to this first and foremost as an indicator of whether you’re a reliable borrower. Check your credit score before applying and try to increase it as much as you can by doing things like paying off your existing debts, cutting out unnecessary expenses and lowering limits on any credit cards you might have.
If a lender can see that you’re a disciplined and effective saver, it’ll boost their confidence in you that you’re a responsible candidate for a loan. The other bonus is that the more savings you have, the greater the deposit you can put down and, in turn, the less you’ll have to borrow.
One of the key areas to stick to is to maintain stable employment and income for a long period prior to applying, generally six to 12 months. Entering a new job will likely bring you back into a probationary period, which lenders won’t like, while uprooting yourself and moving into a different industry altogether will also reduce confidence in your short-term prospects.
It’ll always help your application if you can show your lender that you’ll have funds to fall back on if all else fails. This typically comes in the form of a buffer, meaning that you’re not exhausting all of your savings when applying for your home loan.