Back To Basics: Aussie Home Loans

Are you ready to buy your first home? Welcome to the maze of the mortgage market. With hundreds of different loans available, it is easy to feel overwhelmed. You need to do your homework on the different types of loans available and compare the rates and features of the loans that fit your financial circumstances.

Aussie Home Loans offer a range of loans from a variety of lenders, including their own in-house products.

The Aussie Home Loan standard variable loan is available for a minimum term of 5 years and maximum of 30 years. Eligible home buyers can borrow up to 80% of the property's value without needing Lenders Mortgage Insurance (LMI), or up to 97% with LMI. The minimum amount that Aussie Home Loan customers can borrow is $50,000.

A minimum income of 35% of the total value of the loan is required for borrowers who are applying for a home loan on their own, while an income of 30% of the loan value is needed for joint borrowers.

The Aussie Home Loan has a competitive interest rate when compared with other lenders, but borrowers should always consider more than the interest rate when exploring home loan options. Fees, features and flexibility are important considerations with any home loan.

The costs of attaining an Aussie Home Loan add up, with an application fee of $500 and settlement fee of $100.

When an Aussie Home Loan standard variable loan is paid off in full, an exit fee of $215 is payable. Aussie customers are penalised when paying their loan off earlier, with early termination fees of $1500 if the loan is paid off within the first year, $1000 if paid off within the second year and $500 if paid off within the third year. To switch your home loan to another Aussie product would cost $300.

A redraw facility is available to eligible Aussie Home Loan customers, but only if at least 24 hours notice is given. There is also a minimum redraw amount of $1000, so this loan product generally does not give you easy access to your home equity.

A home loan may be the biggest financial commitment you ever make, so be sure to find the right loan for you before signing on the dotted line. Enlist the services of a financial broker to help you get the best deal for your financial circumstances.