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Borrowing Guide
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How much can I borrow?
Your borrowing power is determined by how much deposit you have, your current household income, what monthly financial commitments you have, current savings and your credit history, it can also differ from lender to lender. A HOLA Adviser can help you calculate this with you.
_______________________________________________________________________________________________________________________ How much deposit do I need?
The deposit required depends largely on the type of home loan most lenders will want you to show 6 months’ regular savings history before they’ll approve your loan application. As a general rule, you need at least 5% of the property value for a deposit if you are an owner-occupier. If you are an investor, you will require 5-10% of the purchase price. With the cost of real estate these days some lenders will accept as little as 0% deposit, however this usually incurs a much higher interest rate. If you can save some deposit, you can finance up to 95% of the property value from a lender on their normal competitive terms. Some may then offer to add the mortgage insurance costs to your loan as well, therefore lending you up to 97% of the property value. A HOLA Adviser can help you structure a savings plan for your deposit, and help you access the government’s First Home Owner Grant to put towards your deposit.
_______________________________________________________________________________________________________________________ Can we use the home owners grant as part of our deposit?
If you qualify for the First Home Owners Grant you may be able to use this as part of your deposit. Request an appointment today to discuss your situation.
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How much will my repayments be?
The amount that needs to be paid monthly to reduce your loan balance to zero over the term of the loan is calculated to give you your minimum monthly repayment total. Should you decide to make extra repayments this will reduce the term of your loan.
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Can I apply for a business/commercial/industrial loan from HOLA?
Yes, however depending on your circumstances a loan may need to be secured by a Residential Property that has enough equity to cover the new loan amount. Request a no-obligation appointment to discuss your situation.
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Can I make extra repayments on my loan?
Yes. In most cases you can but this also depends on the type of loan. If you decide to fix part or all of your loan, you can arrange to make extra repayments when setting up your fixed loan.
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What is an Interest Only Loan and why would I take one out?
This is a loan that is mainly used by property investors. It allows the borrower to pay only interest for an agreed period instead of principal and interest. This maximises the investors tax deductions whilst also freeing up cash flow for other investing opportunities.
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Can I pay out my loan early?
Yes, however early repayment fees may be payable depending on your type of loan. Other fees and charges may also apply refer to the information contained in your loan agreement.
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How is interest calculated?
Interest is calculated on your outstanding loan balance on a daily basis and charged to your home loan account once a month. So if your home loan offers the flexibility to make additional repayments you could save thousands of dollars in interest over the term of the loan.
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How do I contact HOLA?
If you want to apply for a home loan, call 1300 720 693, to be put in touch with a HOLA Adviser. If you are an existing customer you can contact us by:
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