How many lending institutions does Total Home Loan Service represent?
We currently have access to loans from over 30 different lending institutions and this continues to grow. We strive to stay up to date with new loan products, to benefit our customers through competitive loan products.
How much can I borrow?
There are several factors to consider when reviewing how much someone can borrow. Examples of these are income, employment status, credit cards, existing loans, savings history and number of children. Please refer to the Borrowing Calculator for an approximate calculation.
What does LVR stand for?
LVR stands for Loan to Value Ratio. This is the ratio of the Loan Amount against the Purchase or Valuation Price. For example, if your new property has been valued at $500,000, and you are borrowing $375,000, then the LVR is 75%.
The maximum LVR differs from lender to lender and is also affected by a number of factors, including the amount you are borrowing, location of the property, whether you are borrowing for investment purposes or for your own home.
What is a redraw facility?
If you have a variable rate loan, your redraw facility allows you to make extra loan repayments when you can, and then withdraw these funds if you need them. It’s a good idea to put any spare funds into your home loan, to reduce the balance. Even if you redraw some of the money, you will have reduced your interest payments for the period the extra money was in your account.
Can I switch between variable and fixed interest rates?
This very much depends on the loan product that you select. If this is an option you would like to have available on your home loan, mention this during your appointment as it may affect the product selection process. Switching from a variable to a fixed rate is generally available. Switching from a fixed to a variable rate is not so simple. Costs may apply if you break your fixed contract before the end of the fixed term. These costs will depend on current market rates, your loan balance and the portion of the fixed term remaining at the time you wish to switch.
How is interest calculated?
Interest is calculated on your outstanding balance daily and charged to your loan account once a month. As the number of days in each month varies, the amount of interest charged each month may also vary.
Which loan is suitable for me?
The needs of one person to another can vary tremendously and choosing a loan for you can not be determined without looking at your whole financial situation. We are here to help you find a home loan product that you are comfortable with.