Who can I borrow from when I buy my home?
When you are ready to enter the Bunbury or Southwest property market and become a homeowner, you will most likely need to borrow money for the home from a lender.
In WA, there are four different lender options when it comes to procuring a mortgage to buy your home.
Banks
In Australia, it’s common knowledge that there are four big banks;
Commonwealth Bank
Westpac
ANZ
NAB
These major lenders have an abundance of mortgage products they offer their customers which have flexible terms and conditions. Given their credibility and solid foundations in the Australian market, they are the primary choice for many buyers.
There are also an array of smaller banks that offer home loan products to choose from which might suit your lifestyle and values better.
Credit Unions and Building Societies
Lesser known lender options which you may not have heard much about are Credit Unions and Building Societies. These businesses will provide a much more personalised approach to your mortgage requirements and can often provide competitive interest rates.
They are often customer-owned institutions and put community interest first and foremost; which results in you receiving a much more customer-centric experience when you decide to select them as your lender.
Non-Bank Lenders
Non-bank lenders may specialize in niche markets or cater to borrowers who might not meet the stringent criteria of traditional banks. These alternative lenders will provide customised products which are geared toward flexibility to suit their clients’ requirements.
Non-bank mortgages can be Insurance companies and fund managers as examples; they are not allowed to receive a deposit the way that banks are so they will usually gather the funds through their own means.
Mortgage Brokers
Mortgage brokers, such as Allen Finance in South Bunbury, Western Australia are the middle-man between you, the customer, and the lender. They act as intermediaries to ensure you receive the very best product available to you based on your eligibility, contribution available and the criteria of the lender.
Mortgage brokers will offer you expert advice on the best mortgage lender for your lifestyle and will save you on the time spent on comparing lenders by doing it for you. They will guide you through the loan application steps and help you gather the correct documentation, ensuring everything is submitted in the right order and on time.
Once you have secured your mortgage, your broker will keep an eye on the market and remind you as necessary to do a mortgage health check. This tells you whether you are getting the best value and if there are better options available.
If you want to find out more, get in touch.
Comments