Home loans
5 tips to show us you’d be a great borrower
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Getting into your own home sooner!
Take a look at our options below.
So you’ve decided you want to buy a house or a unit you can call your own.
You’re getting a deposit together but it feels like it is taking ages to reach your goal. The good news is we have some great resources to help you along the way!
No doubt you’ve started looking into it and come across articles and websites full of bank-speak.
It’s completely normal for your head to be swirling while you try to figure out the difference between offsetting and redrawing. Sure, a home loan might say it has a competitive low interest rate but what does that even mean?
We have several articles that break down some common home buying questions. As well as calculators that can help you understand what you might be able to afford.
So what can you learn about here?
- Find out if your eligible for government support.
- Crunch some numbers and see how much you could borrow.
- Read our blog posts to learn more about getting into your first home.
MyHome
MyHome is a Tasmanian Government initiative aimed at assisting eligible home buyers to build or purchase a home to live in.
Learn more
Extended home loan
We now offer an extended home loan term option to give more Tasmanians the chance to own their own home.
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Home Guarantee Scheme (HGS)
Bank of us is pleased to be a Participating Lender for the Australian Government's Home Guarantee Scheme (HGS)
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Lending terms you should know.
1. Comparison Rate
This rate will always be displayed side by side with the advertised rate. A comparison rate helps you understand the full cost of a loan including some fees and charges. Comparison rates are a great way to compare loan costs.
2. LMI
Lenders Mortgage Insurance protects the lender in case you have issues meeting your mortgage commitments in the future. To avoid LMI you would need to have a deposit of more than 20% of the total loan cost. You could also be eligible for MyHome
3. Credit Score
This is a value that is based on the information available in your credit report. This report will include info on any other loans and bills and your repayments history.
4. Basis Points
Basis points refer to changes in interest rates and other percentages in the finance world. As an example, the RBA (Reserve Bank of Australia) could move interest rates by 0.15%. This would be the same as 15 basis points, or 0.15 percentage points.
5. LVR
Loan to Valuation Ratio (LVR) is a percentage of the total value of the property. So if a property is worth $500,000 and you are borrowing $450,000, this would be an LVR of 90%.
6. Offset
If you have savings in an offset account associated with your home loan you will pay less interest. Your savings are ‘offset’ against the total loan amount and your interest payable will be reduced.
Calculators
Now you have your budget sorted and have a savings plan in place. Let's have a look at how much you can borrow with our Borrowing Power Calculator.
This will give you a good idea of the kind of price bracket you might be looking to buy in.
Found a home you like? Why not use the Loan Repayments Calculator to quickly check what your weekly, fortnightly or monthly repayments will be.
Borrowing Power Calculator
Loan Repayments Calculator
Extra Repayments Calculator
How to get home loan ready!
1. Rock your creditworthiness
Ways to get a higher score include paying off credit cards, loans and bills on time and not taking on a greater loan amount than you can reasonably manage. You may be able to improve your credit score which will support your loan application.
2. Steady cashflow, steady wins
Generally, lenders favour a solid, stable employment history over casual or contracted work. It’s all about ‘serviceability’, they like to see evidence that you have the ability to make regular repayments.
3. Stack up the cash
The lender may view you as a safer bet if you’ve had the discipline to save a larger amount towards your home and saving 20 per cent or more means you avoid Lenders Mortgage Insurance.
There are also a few programs like MyHome and the Home Guarantee Scheme that are available to help get people into homes with less than 20 per cent deposit.
4. Prove you’re a stealthy, savvy saver
There are several ways to achieve this, including making regular direct debits to a separate account and putting tax refunds or other windfalls into savings as soon as they come in. Being able to show your prospective lender that you have solid money moves like a good saving history can go a long way.
5. Slay your debt
The final way to show you’d be a good borrower is by keeping debt to a minimum – and paying it off quickly when it accrues. Review any credit cards and buy now pay later accounts. Are they necessary? If not, you might consider closing them. Be debt lean!
Quick Reads
Check out some of our quick reads for more tips and helpful advice to keep you on the path to Financial Betterness.
Home loans
Staying on top of your home loan repayments
Read more
Life
5 things to consider before moving in with your partner
Read more
Home loans
Simple steps to buying your first home
Read more
Home loans
Getting a foot in the door!
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Home loans
How to unlock the door to your own home faster
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Home loans
How healthy is your home loan?
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Home loans
Hands up if you have a home loan?
Read more
Please note this information is general in nature and does not take into account your personal circumstances or objectives. You should consider this before acting on any of the information contained.
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Bank of us acknowledges and pays respect to the palawa - Tasmanian Aboriginal people - as the traditional owners of all the lands and waters. And we pay our respects to Elders past, present and emerging for they hold the knowledge, memories and culture of Aboriginal people in lutruwita/ Tasmania.
Bank of us is a trading name of B&E Ltd
ABN: 32 087 652 088
AFSL & Australian Credit Licence: 236870
BSB: 632 001
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