www.rhm.com.au/dynamic/news.asp?f_NewsletterID=5624 -
[Cached Version]
Published on: 8/5/2008
Last Visited: 8/28/2008
It's important for first timers to understand what's actually needed to obtain a home loan, says Warren O'Rourke, national manager with Mortgage Choice. "What first homebuyers don't realise," says O'Rourke, "is that applying for a mortgage can be much easier than they expect. "For anyone planning to buy property, ,right now' is the best time to start researching because you may find there are more options available than you realise. "We have seen some people save and save over many years only to find they could have entered the market earlier without much , or any , deposit."
In fact, some lenders offer ,100 per cent' or ,no deposit' home loans, where borrowers with good ,serviceability' , the ability to make loan repayments , only have to put forward a small part of the loan amount, mainly covering costs such as stamp duty and legal fees."There's even what's called a ,105 per cent' loan which covers the property's purchase price plus all other costs," he says.O'Rourke says borrowers need to be aware that these low, and no deposit, loans tend to attract a higher interest rate.
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O'Rourke says borrowers also need to be aware of what ,low doc' and ,no doc' loans are.