Loan Comparison Report
When looking for a good deal on a home or investment loan (mortgage), the interest rate matters. A home loan is a long-term debt, so even a small difference in interest adds up over time.
Loan Repayment
1. Paying half the monthly payment on a fortnightly basis gets you ahead in payments.
Example: If your minimum monthly payment is $1,000, then half your monthly payment will be $500 debited fortnightly.
A standard fortnightly payment is calculated as follows: (Monthly payment of $1,000 x 12 months in a year, divided by 26 fortnights = $461.55).
2. Paying weekly or quarter of the monthly payment each week gets you ahead in payments. Example: If your minimum monthly payment is $1,000, then a quarter will be $250, debited weekly. A standard weekly payment is calculated as follows: (Monthly payment of $1,000 x 12 months, divided by 52 weeks = $230.76).
3. Place all your surplus cash into an offset or redraw facility. When calculating interest payable on your mortgage, the lender will subtract the offset/ redraw account balance from the mortgage balance prior to declaring your monthly interest payable.
Equity
There are two ways to consider equity available in your property;
1. Equity available on sale, this is calculated: Your property value less any loan associated with it less cost to sell i.e. real estate agent fees
2. Equity available when refinancing, in-order to avoid Lenders Mortgage Insurance premium this is typically calculated at 80%of property value.
Example: Your property is worth $1.5M and you owe $750k. The equity you can draw by refinancings is $1.5M x 80% less $750k.
What could you use your equity for?
- Purchase an investment property - deposit
Page 1/3
- Invest in the sharemarket - professional guidance from a financial planner is highly recommended
- Renovate your existing home
- Purchase a vehicle
- Take family on a memorable holiday
- Pay off any large high interest loans
- Start a business
Loan Comparison
Home loans come with different options and features. These can offer flexibility or let you pay off your loan faster. Some could cost you more, so make sure they're worth it.
Here are some mortgage option/ features available to borrowers:
- Principal & Interest loan
- Interest Only loan
- Variable rate loan
- Fixed rate loan
- Split loan - Variable & Fixed portion
Disclaimer: Our loan comparison calculator has the following assumptions build in;
- All applicants have credit scores equal to or greater than 750
- Applicants are able to service their existing loan balance
- At least one applicant is an Australian citizen or PR holder
- All applicants will be acceptable to lenders lending policy
Your Mortgage Application Process
At loansHub, we make getting a mortgage simple, easy and stress-free as possible. That’s why we provide the technology, education and customer service to help you understand all of the details along the way and get the loan that’s right for you.
Best of all, our smart mortgage technology will be your personal mortgage manager, making sure that you get a better home loan for the life of you mortgage.
Here’s how our mortgage process works and what you can expect from us at each step.
1. APPLYING FOR A LOAN
Start your mortgage application process by completing and submitting our simple online form with details such as your, goals, income, assets and liabilities.
Then, we’ll check your documents, serviceability and available equity so that we can provide you with a personalised solution that is in your best interest.
Benefits
- Options to apply at whatever time and place that works best for you, no need to make an appointment with a broker or bank staff
- Opportunity to upload your all financial information upfront so you can give accurate and verified documents required by lenders and shorten approval time-frames.
- Personal Mortgage Manager monitoring your situation going forward
Page 2/3
2. LET’S TALK OPTIONS
After you’ve applied, our technology pulls all the loans you are eligible for by matching your financial situation and goals with loans available through our lender panel.
Then, one of our finance experts shortlist the best options for you before presenting it to you for consideration. Regardless of you being a first home buyer of having owned a property before, we will help you analyse the costs, rates and benefits of each loan to figure out which one is right for you.
Benefits
- Loan options presented are personalised to your needs and objectives
- Application reviewed by experienced and qualified Credit team
3. PROGRESSING YOUR LOAN TO THE LENDER
Throughout the loan process you will be able to follow the progress by logging into your loansHub profile as we’ll be checking regularly with the selected lender where your files are in-order to ensure its always moving forward.
Benefits
- Direct contact with decision makers
- Loan contracts issued directly to you and using edocs where available
- Real-time updates through your loansHub profile keep you in the loop
4. ONCE YOUR LOANS SETTLE
You can choose how you want to access your loan and when you want. Schedule your loan repayments to match your pay cycle or pay manually through your selected lenders internet banking.
Benefits
- Expert advise on how to make your mortgage work best from loansHub team
5. YOUR PERSONAL MORTGAGE MANAGERS
We want you to have the best value loan for your situation for however long you have a mortgage. So, you can expect the same great service from us once your loan settles as our system automatically reviews your loan at regular basis, ensuring you are getting the best product for your situation after settlement.
Benefits
- Regular reviews by your personal mortgage manager to ensure that you are getting best loans
- Easy access to your information on our portal and only information that has changed needs to be updated for new applications
- Mortgage advice and options to help you as your needs change
Page 3/3