Buying

Mortgage basics

You need to be 18 years and over to get a mortgage and have a regular income to meet the loan repayments. Most financial institutions offer home loans that will enable you to buy a house, unit, townhouse or house and land package, with a variety of different home loan options available.

The maximum term available is generally 30 years for a home loan and 25 years for a residential land loan.

Mortgage repayment options are usually on a weekly, fortnightly or monthly basis depending on what suits your requirements and the mortgage that you select. The more often you make mortgage repayments, the lower the interest cost will be and the sooner your home loan will be repaid (although this will depend on the terms of your particular mortgage product and whether additional or lump sum repayments are also allowed). If you plan to make mortgage payments in addition to your scheduled payments, make sure you check that your home loan allows for additional mortgage repayments, increased monthly repayments, or occasional lump sum repayments; and also check for any fees that may apply. If you plan to pay off your home loan ahead of time, check that you can do so and check for any fees that may apply.

Fixed interest home loans generally are less flexible (eg. you can’t redraw any extra repayments you’ve made) and have charges for early repayment. Your mortgage repayments are determined by the amount borrowed, the term of your home loan, frequency of the repayment and the interest rate (although you will need to review the terms of your particular mortgage).

You can use a mortgage repayment calculator to determine the amount of your mortgage repayments based on different criteria (interest rates, mortgage duration etc).