Home Loan

Home loans are usually calculated from the borrowers income. For a single earner the amount borrowed is normally three and a half times that persons income. For a couple the amount is normally two and half times their joint income.

The lender could reduce the amount borrowed if your income is mainly bonus, commission or overtime related, unless the bonuses, commission, or overtime is guaranteed. Lenders may also reduce the amount if you currently have another loan in place and are making other loan repayments.

If you decide to seek financial advice from a mortgage broker, the broker has a responsibility to offer you a home loan, which you can afford. Whether or not you choose to seek advice from a broker the lending company still has a responsibility to only lend you what you can afford. This is typically calculated from your income, expenditure, and other financial circumstances.

Potentially you have two main decisions to make when taking out a home loan. Whether or not to choose a fixed or variable rate mortgage, and whether or not to choose a long or short term deal. Use the websites listed below to help make your decision easier.

What appears to be a expensive mortgage at the time may actually end up saving you money in the long run. If you have applied for a home loan which came with a current special deal make sure you find out what if any changes occur at the end of that special period.

Purchasing a house is an expensive ordeal. Beware of the costs from acquiring home loan. These are known as mortgage related fees and are clearly set out in the key facts illustration booklet (KFI), which by law the lender must give you before you sign on the dotted line. However this will not include fees such as stamp duty or conveyancing fees.

Lenders frequently offer incentives that can reduce the cost of taking out a mortgage. This can vary from free valuation of your home to free legal costs. However if you have decided to pay back the loan early you may find yourself having to then pay these fees.