FAQ
Frequently Asked Questions (FAQ)
1. General Home Loan Questions
A home loan, also known as a mortgage, is a sum of money borrowed from a lender to purchase a property. The borrower repays the loan with interest over a set period.
The amount you can borrow depends on factors such as your income, credit history, expenses, and deposit. Contact us for a free consultation to assess your borrowing capacity.
- Fixed-rate loan: The interest rate remains the same for a set period, providing stability in repayments.
- Variable-rate loan: The interest rate fluctuates based on market conditions, which may lower or increase your repayments.
2. First Home Buyers
There are various grants and incentives available, such as the First Home Owner Grant (FHOG) and First Home Guarantee Scheme. These can help reduce costs. Contact us to check your eligibility.
Generally, lenders require at least a 5-20% deposit. However, some loans allow lower deposits, especially if you qualify for government schemes or have Lender’s Mortgage Insurance (LMI).
3. Buying a Home & Investment
- Owner-occupied loan: For those buying a home to live in.
- Investment loan: For those purchasing a property to rent out or resell. These loans may have different interest rates and tax benefits.
Yes! While traditional income verification is different for self-employed applicants, we have loan options tailored to suit your financial situation.
4. Refinancing & Bridging Loans
Refinancing is replacing your current loan with a new one to get a better interest rate, lower repayments, or access equity. Consider refinancing if:
✔ Interest rates have dropped
✔ Your financial situation has changed
✔ You want to consolidate debt
A bridging loan is a short-term loan that helps you buy a new property before selling your current one. It provides financial flexibility but should be carefully planned.
5. Construction Loans
A construction loan is released in stages as your home is built. You only pay interest on the amount used at each stage, making it different from a traditional home loan.
You’ll need:
✔ A detailed construction contract
✔ Council-approved building plans
✔ A licensed builder
6. Self-Managed Super Fund (SMSF)
Yes, you can use a Self-Managed Super Fund (SMSF) Loan to buy an investment property. However, there are strict regulations, and professional guidance is essential.
SMSF loans have complex rules, higher setup costs, and restrictions on the type of property you can purchase. Speak to our experts to ensure it’s the right choice for you.
7. Loan Application Process
The required documents typically include:
✔ Proof of income (payslips or tax returns for self-employed)
✔ Bank statements
✔ ID (passport or driver’s license)
✔ Credit history report
Approval times vary based on the lender and loan type. A pre-approval usually takes a few days, while a full approval may take 2-4 weeks.
8. Costs & Fees
✔ Application fee – Charged by the lender when you apply
✔ Lender’s Mortgage Insurance (LMI) – Required if your deposit is less than 20%
✔ Stamp duty – A state government tax based on the property’s value
✔ Ongoing fees – Some lenders charge monthly or annual fees
✔ Make extra repayments when possible
✔ Choose a loan with an offset account
✔ Consider refinancing to a lower interest rate
Let’s Make Your Dream a Reality!
Whether you’re buying your first home, refinancing, or investing in property, AusTop Home Loan is here to help. Contact us today and take the first step toward securing your financial future.