Banks are clamping down on investors from every angle, with ‘living expenses’ one of the latest factors to draw attention.
So how can you maximise your borrowing power, when every little expense is under the spotlight?
To fix or not to fix
If you're about to buy a house or you're looking to refinance you may be asking yourself, should I fix my home loan or not?
Like most decisions, there are pros and cons for each option.
Here are some things to think about to help you decide.
The phrase "principal and interest" or "P&I" is top of mind for many borrowers at the moment.
Recent moves by the Australian Prudential Regulation Authority (APRA) have seen many lenders cut rates on principal and interest home loans while raising rates for interest-only borrowers. These rate moves have grabbed media attention, as lenders try to incentivise interest-only borrowers to move to principal and interest repayments.
If all that media coverage has you scratching your head, fear not: We're here to demystify principal and interest repayments for you.
The home loan pre approval process, also known as conditional approval or approval in principle, is when your bank conditionally approves or denies you for a loan before you apply to buy a house.
These savings will be the deposit that you put towards the purchase of your new home. You may also be asked questions about how you’ve saved your deposit, as this is one way lenders consider whether you have the capacity to pay your home loan repayments every month. Generally, lenders will distinguish between what they call ‘genuine’ savings and ‘non-genuine’ savings.