Solicitude Finance is committed to give answers to all the questions you may have
How much is the mortgage registration fee?
The mortgage registration fee varies between states. The fee itself is the charge of registering a home loan, thus the property acts as security on that loan. The government requires the home loan to be registered so that future claims on the property can be checked by the prospectors. Stamp duty calculators can assist you in finding out how much you may need to pay in your state.
Can I borrow money for stamp duty?
Since stamp duty is an initial cost, lenders prefer if a borrower can support this cost through other means, such as personal savings. However, in certain circumstances a lender may include this cost in the loan amount which may also include other costs such as Lenders Mortgage Insurance and ongoing product fees. Stamp duty fees can also be covered through the use of a Guarantor Loan.
What is stamp duty?
Stamp duty is a government tax on certain transactions. You generally need to pay it when you buy a motor vehicle, insurance policy or real estate. Stamp duty on a property can also be known as “land transfer duty”. The amount of stamp duty that applies to a transaction varies depending on where you live, the type of transaction taking place, and its value.
Who is exempt from stamp duty?
Certain types of buyers may be entitled to a stamp duty exemption depending on where they live, whether they’re first home buyers and where the property they’re buying is located. For example, both Victoria and NSW have recently abolished stamp duty for first home buyers purchasing properties valued up to a certain amount. Check your local State or Territory government website for the latest information on which exemptions apply to your situation.
Can I defer stamp duty payments?
Sometimes it may be possible to defer your stamp duty payment or to apply for a concession or reduction. Again, the stamp duty laws that apply in your State or Territory (which vary) will determine whether you’re able to do this when purchasing a property, so check with your State revenue office.
Which other costs do I need to factor in?
1-pest and building inspections, 2-legal/conveyancing fees, 3-bank fees, 4- lenders mortgage insurance, and moving and repair costs.
If I have bad credit or a default, can I apply for a home loan?
At Solicitude Finance we have partnerships with a few lenders offering home loans to borrowers with a history of bad credit or defaults. Usually the lender charges a higher rate, as there is more risk in lending money. However, each person's situation is different and their ability to repay a home loan, which lenders will take into consideration.
Should I choose a fixed or variable interest rate?
While a fixed interest rate can be useful to help protect you against potential interest rate rises, it can mean that you're stuck with the fixed rate if variable interest rates decrease during the fixed period. Fixed rate home loans generally have fewer features than variable rate home loans.
I have bad credit. Can I still apply for a home loan?
Solicitude Finance has access to a number of lenders who specialise in helping those with credit issues, a low credit score or unusual circumstances. We can help you find a home loan that is suitable for you.
Can I use equity to buy another property?
Yes, you can. If you are interested in purchasing another property, you as an investor, can often access up to 80% of your current home's equity but it all depends on your circumstances.
When I fix my interest rate, when will the new rate take effect?
Your new fixed rate will generally kick in when your next monthly repayment is due. If you have any issues, contact your lender directly.
What is the difference between a principal and interest home loan and an interest-only home loan?
With a principal and interest loan, your repayments cover the amount you borrowed from the bank as well as the interest you are being charged on top. Paying both simultaneously means you will pay off your loan sooner. An interest only loan requires you to pay the interest charged on your loan only, but for a limited period of time (usually between 1-10 years, depending on whether you're an owner-occupier or an investor)
I am on a disability pension can I apply for a home loan?
Yes, we may be able to help you depending on a number of factors.
What's is the minimum deposit I need for a home loan?
Ideally, you should save as much as possible before buying a home. The minimum required deposit is 10%, but aim for 20% if possible. If you're borrowing more than 80%1 of the property value, you'll need to take out Lenders' Mortgage Insurance or Low Deposit Premium.
Can I buy a house with 5% deposit?
It's true that lenders like to see a deposit of at least 20% of your property's purchase price. However, it may be possible to buy a home with much less. Some lenders may offer loans of 90% or even 95% of the property's value which means you could potentially get into the market with a deposit of 10% or even 5%.
Can I use the First Home Owner Grant as part of the deposit?
Yes, the First Home Owner Grant can be put towards reaching your deposit amount. However, the First Home Owner Grant is often not large enough to cover the minimum deposit required for most properties, so additional savings would be needed.
How long does a pre-approval last?
Pre-approvals are usually valid from between three to six months. If your pre-approval expires before you find a property then we can apply for an extension.
I don’t fit standard bank criteria! can I still get a good interest rate?
It’s usually just a matter of applying with the right lender who has a flexible policy and offers great rates. This is where our expertise as a mortgage broker comes in!
What is interest in advance?
Interest in advance is an option that may be available on fixed interest and interest only investment loans. You can fix the interest rate (usually at an additional discount) on an investment loan for the following 12 months. Therefore, you pay the amount that would usually accrue throughout that year in one upfront payment. If you pre-pay the following year's interest, you can also claim it as a tax deduction in the present year.
How is Lenders Mortgage Insurance (LMI) calculated?
Lenders Mortgage Insurance or LMI, is calculated as a percentage of the total amount borrowed. The fee the borrower pays increases as the LVR and loan amount increases.
