McGrath Albury | Wodonga

How do I know which home loan is right for me?

Choosing the right home loan is about more than just finding the most competitive interest rate. An Oxygen broker can help you work out the best loan for your current and future needs. It’s important to think about how quickly you want to pay off the loan, how much certainty you need with your loan repayments, how secure your job is, and whether you might want to draw back some of your repayments in the future (such as for a renovation).

should I choose a fixed or variable interest rate?

Fixed rates provide certainty – typically your repayments will be fixed to a specific interest rate for between two and five years. But these loans usually don’t let you make extra repayments or use an offset account. Variable home loans give you more flexibility – but if the RBA announces an interest rate rise, your repayments will go up.

When is it worth refinancing?

If you don’t think your current home loan is meeting your needs, it's worth chatting to an Oxygen broker to see if it makes sense to refinance. Sometimes you can refinance with your current lender to get a better rate or lower fees and in other cases it may be worth switching banks to get the features you want. There may be costs involved in switching banks – such as a property valuation or exit fees on your current loan. Oxygen Home Loans will help you weigh up the pros and cons.

What is lender's mortgage insurance (LMI)?

If you have less than 20% deposit you’ll need to pay Lender’s Mortgage Insurance. It’s a flat, one-off fee that is added to the cost of your loan. It protects the lender if for some reason you can’t meet your loan repayments – and it allows you to buy your home sooner, even if you don’t have quite enough saved for a deposit.

What if my personal or financial circumstances change?

Life is full of changes. You may be changing employment, starting a family, thinking about taking time off to travel or considering a major home renovation all these things could affect whether your home loan is still right for you, so it’s a good idea to let your Oxygen broker know. They may be able to help you refinance or even take a payment holiday.

How can I own my home sooner?

Making some relatively small but regular extra payments can make a big difference. For example, instead of pocketing the difference if the RBA cuts rates, keep paying the higher amount. You could pay your loan off a few years early – and reduce the total interest you pay. If you make your mortgage payments fortnightly rather than monthly, you’ll actually make an extra payment or two every year.

What are the other costs involved in buying a home?

Remember to factor in stamp duty, building inspections, conveyancing and solicitor fees. You’ll also need some savings to cover the cost of moving, and any urgent repairs or improvements you may need to make to your new home before moving in.

How much do I need for stamp duty?

Stamp duty is a state government tax based on your property's selling price, and can be a significant extra cost. Each state or territory has different rules – some states offer discounts to first home buyers. Use our stamp duty calculator to work out how much stamp duty you need to pay.

How much can I borrow?

This depends on your personal situation and will differ between lenders. Use the borrowing power calculator to get an idea of how much you can borrow and what the repayments would be. Talk with an Oxygen broker to understand what your borrowing power would be, and what types of loans would suit your needs.

How do I get loan pre-approval?

When you find the perfect home, you need to move quickly. An Oxygen broker can arrange fast pre-approval, so you can be confident when you’re bidding at auction or negotiating an offer.