Owner-Occupied Homes

Owner occupied property home loans are mortgages that are available for people who wish to buy their own home. Owner occupied home loans are available from hundreds of lenders across Australia. These lenders include major banks, building societies, local credit unions, etc. Each lender offers different rates and conditions on mortgages for your potential home mortgage. Making the situation even more complex, home loans can incorporate mortgage features such as redraw, offset and additional repayments.

 

Package & Features

When choosing a home loan, you need to understand your need of features for your home loans.  The better the features usually means higher ongoing fee.  A list of features from a common professional package loan include the following:

• Offset Facility

• Redraw Facility

• Additional Repayment

• Interest Only Repayment Option

• Repayment Holiday

• Split Loans

• Credit Card with No Annual Fee

 

Maximum Borrowing Amount & LMI

For owner occupied loan, many lender can lend up to 95% of the property value when including the Lender Mortgage Insurance (LMI).  Lender Mortgage Insurance is a premium payable by the borrowers that protects the bank against the potential loss bank may incur if the borrowers are unable to repay their home loan.  The premium is charged when the loan amount is more than 80% of the property value.

 

Family Guarantee/Pledge Loan

 

Your family members can use their own home's equity to provide additional security for a portion of your loan amount. This solution reduces your loan to value ratio and can also save you a significant amount of money by reducing or even avoiding the need to pay Lender's Mortgage Insurance. So you get into your home faster, with help from your family.

 

Benefits of the family guarantee/plege loan include:

• By increasing your security through a guarantee from your family, you may be able to reduce or avoid paying Lender's Mortgage Insurance. Lender's Mortgage Insurance is generally payable on loans that exceed 80% of the value of the property

• Family Pledge can help you maximise the amount you can borrow so you can purchase the property you want. A guarantor can request to limit the guarantee to a specific amount1

• Both the borrower or guarantor can ask us to release the guarantee (subject to approval) when the standard Loan to Value ratio (LVR) requirements are achieved

• There are no extra fees for the Family Pledge Option. Standard guarantee and legal fees will apply