Can you deposit cash in your home loan account?

Many banks and other mortgage lenders will let you make extra repayments onto a home loan. Depositing your extra cash into your mortgage like this can help to lower your loan principal, reducing your interest charges and bringing you closer to exiting the loan early. However, it’s not always easy to take this cash back out of your mortgage again in a hurry, unless your home loan has a redraw facility.

What to do if the house valuation is less than your offer

Getting a home loan preapproval doesn’t mean your mortgage is automatically guaranteed. Many lenders preapprove home loan applications on the condition that the value of the property being bought is enough to secure the loan. If the lender’s valuation comes back short of the price you’ve offered to pay, you could be left in a difficult financial position, though there are steps you can take to try and recover.

How fast can you get a home equity loan?

To get a home equity loan, you’ll first need to get some equity in your property. While it will likely take some time to build up your equity, you may find that you have more equity available than you realise, which could help things go faster.

Can you have two home equity loans?

A home equity loan can help put the value of your property to work for you. Whether used to access a flexible line of credit, or to secure a mortgage over an investment property, your home equity can prove a useful tool for reaching your personal and financial goals.

How is mortgage interest calculated?

Home loans can seem complex and intimidating. This may be partly due to the massive sums of money involved, especially for buying property in Australia’s capital cities. It may also be partly due to the seemingly impenetrable maths involved in working out your interest charges and monthly repayments.

How do mortgage companies verify income?

When you apply for a home loan, you’ll need to show the lender that you can comfortably afford the repayments. But how exactly do banks and mortgage lenders check your income and confirm that you earn enough for a mortgage?

Can I borrow money for stamp duty?

Stamp duty can be a significant cost to consider when buying a property. As well as your deposit and other fees and charges, stamp duty can add thousands of dollars to your upfront costs, depending on the value of the property. So it’s not surprising that some Australians look for alternative ways to manage this expense, such as borrowing money for stamp duty.

Can a student get a home loan?

It is possible for students in Australia to get home loans, provided they can fulfil a mortgage lender’s eligibility requirements. This may not be easy for many students, who already have significant study commitments.

How do banks value property?

Different banks use different methods to calculate the value of a property. Also known as a “bank property valuation”, the method your mortgage lender chooses may depend on their own internal policies, and other reasons, too.

Can you include renovation costs in a mortgage?

Traditional real estate advice says to buy the worst house in the best street – you can pay less today and renovate tomorrow. But renovating still costs money, so you may want to look into the options for using your home loan to help take care of your budget.