Frequently Asked Questions

I am buying my first home, what do I need to know?

Buying your first home is a very exciting time in your life, but it can also be an overwhelming one.

SA Loan Options have helped 100s of individuals, couples and families get started on this journey. If there is one piece of advice we could give, it would be… There is a big difference between how much you can BORROW and how much you can AFFORD. So your first step would be to contact SA Loan options so we can help you determine what this amount is.

The second part of the process is to start saving for your deposit. This is usually 5% to 10% of a property's value.

SA Loan Options will be able to help you decide on which lender and type of loan will be best for you and your current situation.

Once you have found your home, you will then be able to negotiate an offer confident in the fact you can afford it. If the offer is accepted you can then sign the contract and pay your deposit.

For further information or advice contact us today!

How much can I borrow?

The total amount of money that you can borrow will vary between different lenders.

SA Loan Options can give you an individual assessment of your circumstances when you meet.

How much deposit do I need for a home loan?

The minimum deposit required for a home loan is usually around 5% to 10% of the property's value.

To avoid Lenders Mortgage Insurance though, a minimum deposit of 25% is required.

How much money will I need to reserve for Stamp Duty?

Each state or territory has different guidelines and calculations regarding Stamp Duty.

Contact SA Loan Options for the latest information regarding Stamp Duty in South Australia.

What is Lenders Mortgage Insurance (LMI)?

Lenders Mortgage Insurance provides protection to the lending institution in the event that you default on your loan.

Though Lenders Mortgage Insurance protects the lender, it is paid for by the borrower. It's a one-off charge that gets included in your loan amount or you may choose to pay it upfront.

Don't brokers simply recommend the lender who pays them the best commission?

No, SA Loan Options does not work this way. For a standard residential home or investment loan the difference in the commission paid by the lenders is small.

We are more concerned with making sure the home loan and structure selected is appropriate to your personal situation and that saves you money.

The fact you have a positive experience is far more important to us.

How does a construction loan work?

When obtaining a standard home loan, all loan funds are advanced at settlement.

With construction loans, however, all of the cost to construct your property will be reserved.

Construction funds are gradually decreased at each stage of construction. Each of these decreases is referred to as a 'Progress Payment'.

These payments are made directly to the builder.

If only a portion of the cost to construct your home is being funded then you will need to contribute your own funds before the loan funds can be drawn down.

Also, funds that are reserved for construction cannot be put towards the land purchase.

What is refinancing?

Refinancing allows you to alter your home loan to suit your new circumstances.

SA Loan Options recommends a yearly Financial Health Check to evaluate whether the original home loan you selected is still the most appropriate choice.

Why invest in property?

Investment properties have various benefits. If you take the time and choose your investment properties well, they can provide you with a decent long-term profit.

If you are considering organising a loan to secure an investment property, contact SA Loan Options to ensure you get the most out of this decision.