The new St. George Bank Home Buying Survey has found that 1.1million Australians compare the excitement of being approved for a home loan to winning the local meat platter raffle . The application process for first-time home buyers, on the other hand, is stressful (51%) and overwhelming (42%).
The study also found that Australians who waited less than a week for approval felt anxious (58%), stressed (55%) and impatient (61%), with each of these percentages reaching close to 100% for those who waited at least 7 weeks.
St. George has embraced all of this by launching a new online mortgage application platform, aimed at relieving first-time homebuyers.
“To help give customers confidence in their application, we’ve developed a new online home loan application platform that provides a more user-friendly application experience for buyers by addressing some of the common challenges that come with applying for a home loan. “said St. George general manager Ross Miller.
This new user-friendly online mortgage application platform gives borrowers a personalized overview with information on how much they can borrow, upfront costs, the maximum they can afford on a property, and estimated monthly repayments.
“The digitization of the experience means that borrowers can now complete their St. George home loan application online and at a time that suits them and could even receive an indicative response in as little as 15 minutes – it must be more enjoyable than winning the meat platter raffle!” Ross said.
Home loan application hacks:
1. Before applying, be sure to review your finances and clear any lingering debt: Lenders will be more likely to lend money if you have no debt. Ross Miller said, “look at any existing debt you may have, such as a personal loan or credit card, and also have a good understanding of your borrowing power (that’s how much you could borrow!)”
2. Remember to budget for additional fees or expenses: It’s important to determine if there are any other additional loan fees or costs on top of the headline rate, as this could impact your decision on which loan to take. Ross recommends to “consider the additional costs associated with buying a property and ensure that you have budgeted for these additional costs. These may include moving costs, cleaning costs, stamp duty and legal fees – to name a few! »
3. As the saying goes, “Measure once, cut twice!” : As you can probably imagine by now, applying for a home loan is no picnic. There’s a ton of information and documents you’ll need to provide to the lender when submitting your application, and forgetting to include just one thing could delay the whole process. “If you have stars in your eyes about a particular property you’ve found, be prepared! Documentation often delays the application process, so be sure to provide all relevant documents in advance, including pay stubs, bank statements and any other financial statements of any debts you may have,” Ross said. .
4. Do your homework: Learn about home loans to better understand important things like rates, fees and features. This way you are able to make a more informed decision when choosing a home loan. As Ross said, “Everyone has different needs and goals, so it’s important that you choose a loan that’s right for you based on your financial situation. So I would encourage potential buyers to educate themselves; the more you know about what buying a property entails, the better you will be able to make informed decisions to help you achieve your goals! »
5. Do a home loan comparison: Don’t just go out and apply for the first home loan you see. Once you know your price range, preferred type of loan, and features you want, take a look to see what’s on the market. Use Mozo’s home loan comparison tool to get a side-by-side comparison of what’s on offer, so you can find the best home loan option for you.
Check out these 2019 Mozo Experts Choice award-winning home loans or, for more options, do a home loan comparison.
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ATTENTION: This comparison rate only applies to the example or examples given. Different amounts and durations will result in different comparison rates. Costs such as withdrawal charges or prepayment charges, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed corresponds to a guaranteed loan with monthly principal and interest repayments of $150,000 over 25 years.
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Initial monthly repayment figures are estimates only, based on the advertised rate, loan amount and term entered. Rates, fees and charges and therefore the total cost of the loan may vary depending on the amount of your loan, the term of the loan and your credit history. Actual repayments will depend on your personal circumstances and changes in interest rates.
^ See Mozo Experts Choice Home Loan Awards information
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