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What’s Involved – Home Loans – Owner Occupied

In the section “Need a Loan – Home Loans – Owner Occupied”, we covered some key things to know about applying for an Owner Occupier Home Loan.

An Owner Occupier Home Loan is where the borrowers will actually occupy as their residence the property being used as security.

Here we will cover key aspects of what is involved in applying for an Owner Occupier Home Loan and what the applicant needs to know.

Loan security

Home loans are almost always secured by a first mortgage over a residential property.

Lenders have internal “Postcode” restrictions indicating the acceptable postcode locations that lender will accept as security. On occasions whilst the security may be acceptable, limitations on the maximum loan value may apply due to reasons of location, high density positioning, age or condition of the premises or other reasons.

Prepare your budget

It is vital ahead of time to assess your financial situation and preferred standard of living when deciding how much you can comfortably afford to repay to a home loan.
Firstly, check is you qualify for;

  • First Home Owners Grant for new homes; and
  • REBA

You need to take into account;

  • your present circumstances and financial commitments;
  • any future plans that will impact your finances;
  • major changes to your family situation such as starting a family; and
  • other possible changes, such as interest rate rises, sickness or unemployment.

Remember when preparing your budget to take into consideration all the costs of buying a property, including:

  • legal, and settlement agent fees;
  • government charges, such as stamp duty and other taxes;
  • lender loan establishment and other loan fees and charges;
  • building and pest inspection fees;
  • insurance (building and contents);
  • property rates and taxes; and
  • moving costs.

For assistance to prepare your budget please contact us or check out ASICs website - MoneySmart.

Supporting Documentation

It's essential ahead of time to prepare a number of documents required by lenders to support your home loan application. The following is a list of potential supporting documents that the lender may request;

  • last 3 payslips;
  • last tax return or group certificate
  • letter form employer confirming allowances, overtime etc;
  • latest 3 or 6 months’ bank account statement;
  • latest 3 months’ credit card statements;
  • latest 3 months’ loan statements;
  • copy latest home insurance certificate (refinance)
  • copy latest shire rates notice (refinance)

Our team will happily work with you throughout this process to identify the documents required by the lender.

Special note:

Lenders will not commence assessment of any loan proposal until all the correct supporting documents are provided. Any time a lender identifies missing documents, they will suspend the application for 5 working days and only then will the file be picked up for re-assessment.

Need an Owner Occupier Home Loan

More information from MoneySmart

For more infor4mation regarding what is involved in applying for an owner occupier home loan contact us.

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