Stockland - Finding the right loan

STOCKLAND BUILDING GUIDES

Finding the right home loan

STOCKLAND BUILDING GUIDES – FINDING THE RIGHT HOME LOAN

Tip: Grab the attention of your land sales professional or builder by entering the conversation with a preapproved loan.

In your financial planning, be sure to account for how your personal circumstances could change over time, such as starting a family or changing jobs.

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The big picture If you’ve been dreaming about building a new home, now is the time to act! New home affordability is improving, interest rates are currently low*, and the choice of home designs is constantly evolving.

Financing the construction of a new home is a specialised area, and it is smart to consult an expert to find out how much you can comfortably afford to borrow. Getting your home loan pre-approved is a big step towards a successful new home hunt. Whether you’re a first home buyer, an experienced buyer or an investor, a pre-approved loan means you will have a clear budget in mind and plenty of confidence.

Learn your budget Determining your budget is an essential step towards finding the right loan and gaining approval. There are a number of free and easy-to-use tools available online and elsewhere, which allow you to check your borrowing capacity and assess what your loan repayments might be.

If you’ve been saving for a deposit, be sure to include this amount in your calculations.

Remember, there may be other costs associated with your new home purchase, such as stamp duty, legal fees, lender mortgage insurance and moving costs, which you will need to allocate funds towards in your financial planning.

Find out more

The information in this publication is provided as a guide only. All images and statements are based on information available to Stockland at the time of publication and may be subject to change without notice. The contents of the publication should not be considered legal, financial or other professional advice and you should consult an expert before making a decision based on anything contained in this publication. Any references or links to third party websites are for information purposes only and Stockland does not represent or warrant that the information on those websites are complete or accurate, nor does it endorse those websites or any company, product or service mentioned on those websites. Stockland will not be responsible or liable to any person for any loss, damage or injury arising (whether directly or indirectly) from the use of or reliance on anything contained in this publication.

For more information FREECALL 13 52 63

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STOCKLAND BUILDING GUIDES – FINDING THE RIGHT HOME LOAN

Tip: Make sure you seek independant advice through a reputable broker or banking institution.

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Get on the front foot Learn buzz words Unless you’re a banker or accountant by trade, the home loan process can be full of unfamiliar terminology. Brush up on your financial vocabulary or ask your broker to explain any terms they use to make sure you understand what you’re signing up for.

Even if you’ve borrowed before, new types of loans are constantly being introduced, meaning there might be something available now that wasn’t available to you last time.

A construction loan allows you to make progress payments, as funds are required for each stage of the building process. These payments are usually referred to as “draw downs”.

Construction loans require flexibility to account for any unforeseen delays in the construction process due to bad weather or other events.

Finance brokers can help you compare loans from a range of different lenders to find the one that best suits your needs.

They can also assist you with the paperwork and follow up with your lender.

Building a new home can involve a number of extra steps in the finance process. Seeking professional assistance and consulting an expert will ensure a smooth and stress-free journey to owning your new home.

The information in this publication is provided as a guide only. All images and statements are based on information available to Stockland at the time of publication and may be subject to change without notice. The contents of the publication should not be considered legal, financial or other professional advice and you should consult an expert before making a decision based on anything contained in this publication. Any references or links to third party websites are for information purposes only and Stockland does not represent or warrant that the information on those websites are complete or accurate, nor does it endorse those websites or any company, product or service mentioned on those websites. Stockland will not be responsible or liable to any person for any loss, damage or injury arising (whether directly or indirectly) from the use of or reliance on anything contained in this publication.

For more information FREECALL 13 52 63

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STOCKLAND BUILDING GUIDES â&#x20AC;&#x201C; FINDING THE RIGHT HOME LOAN

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A quick checklist Learn the loan for you Finding the right loan can seem overwhelming at first. Consider what is important to you in order to narrow down your choices and find the most suitable option.

Do you want a variable or fixed interest rate?

Will you make monthly, fortnightly or weekly payments?

Will you try to make extra repayments to pay the loan off faster?

Can you redraw funds if youâ&#x20AC;&#x2122;re ahead on payments?

Are there penalties if you pay out the loan early?

Can you use an offset account to reduce your loan interest?

Find out more

The information in this publication is provided as a guide only. All images and statements are based on information available to Stockland at the time of publication and may be subject to change without notice. The contents of the publication should not be considered legal, financial or other professional advice and you should consult an expert before making a decision based on anything contained in this publication. Any references or links to third party websites are for information purposes only and Stockland does not represent or warrant that the information on those websites are complete or accurate, nor does it endorse those websites or any company, product or service mentioned on those websites. Stockland will not be responsible or liable to any person for any loss, damage or injury arising (whether directly or indirectly) from the use of or reliance on anything contained in this publication.

For more information FREECALL 13 52 63

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Thank you For more information please call us on 13 52 63 or email us at residential@stockland.com.au