A Qudos at Home Mobile Lender can meet with you at a time and place that suits you, making your home loan journey even easier. They’ll run through all our home loan option to help you find the one that’s right for you.
A mortgage is a contract between you and a lender. In return for money lent to you to purchase a property, the lender will take a charge (or mortgage) over the property, as security for the borrowed funds.
If a borrower breaches the home loan contract terms set by the lender, for example not making the minimum home loan repayments, then the borrower can become in default to the lender.
The lender has the right to take your property if you fail to repay the money you’ve borrowed plus interest and any fees and charges.
Your rough borrowing power can be calculated by subtracting your expenses from your net income. Expenses often include:
Find out an estimate of your borrowing power using our borrowing power calculators.
The best rate home loan for you will depend on a range of different factors including:
There is no golden rule to finding the best bank for home loans. There are many different banks and lenders who offer a variety of loans. Depending on your individual circumstances, lifestyle and goals, it’s important to do your research and compare all your options before making a decision. In your research you could find that what appear to be some of the best rates for home loans, may in fact come with various ongoing fees and charges which can add up over the life of the loan.
When doing your research, it’s important to consider more than just which lenders have the lowest home loan rates. There are many factors that can influence your decision to pick a particular home loan including whether the loan has a variable or fixed rate. Different types of borrowers may benefit from variable and fixed loans, so it’s always recommended that you carefully consider all your home loan offers before committing to one.
A fixed home loan is a mortgage loan where the interest rate is locked for a specific period of time. This means that for the duration of that period of time, your repayments will not be affected by the official cash rate set by the Reserve Bank of Australia or shifting market conditions. A fixed home rate offers certainty for the fixed period, allowing borrowers to budget more accurately and plan their expenses over a longer period of time to ensure repayments are met.
Meanwhile, a variable home loan has an interest rate that may increase or decrease over time. Variable home loans generally provide borrowers with greater flexibility, with many of these types of loans offering borrowers options to pay additional sums to pay off their loan faster and to redraw surplus funds.
It can be a good idea to look for practical ways to shorten the lifespan of your loan - and cut down on interest in the process.
Here are some popular ways to pay off home loans faster and build equity in your home:
Increasing the frequency of your repayments could allow you to decrease the amount that future interest will be calculated on.
If your home loan allows you to make extra repayments, you could consider channelling more money into paying off your mortgage. Bonuses, gifts, and tax returns deposited into your mortgage account (or offset account, if you have this facility) could shorten the length of your home loan as paying extra means your loan will be repaid ahead of time and decrease the amount of interest you pay over the term of your loan.
Use our extra repayment calculator to find out how making additional repayments could reduce the interest payable on your mortgage.
Offset accounts work as a transaction account linked to your home loan. The money in that account ‘offsets’ daily against the balance of your loan. So, it reduces the interest you need to pay because interest is only charged on your net balance (i.e. your overall loan balance minus your offset account balance). In other words, the loan ‘thinks’ you've paid that money off your loan already, reducing the interest charged accordingly. Qudos Bank offers multiple offset accounts on most home loans, check with your lending specialist.
Cutting back on non-essential expenses is often a necessary first step to paying off your home loan faster. What these extra expenses look like will depend on you and your circumstances. However, preparing a budget can empower you to track your monthly spendings and identify expenses that you could realistically reduce.
Want more help? Get in contact with Qudos Bank