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Find And Compare Home Loans In Melbourne

Break Free Home and Construction Loans are a leading Melbourne mortgage broker, with over 20 years of industry experience. We provide lending solutions and advice tailored to your needs. We work closely with clients as trusted advisors and are accessible to clients when needed.

Our brokers work hard at understanding our client’s unique circumstances and helping them overcome common home loan challenges. Whether you’re a first home buyer or an experienced investor, we’ll help you find the best home loan for your situation. Whether you’re self-employed and have trouble proving your income or you’re a contractor or casual worker, we offer solutions for all types of clients’ income sources.

What Is A Home Loan?

A home loan is a loan taken out by a borrower to help them more easily purchase their dream property. It helps them effectively manage their finances, and achieve their homeowner goals more quickly. Home loans are widely available from banks, credit unions, and other financial institutions.

If you’re like most homebuyers, the thought of finding the best home loans in Melbourne has to offer is daunting. Between researching interest rates, comparing products, and deciphering fine print, it can seem impossible to make an informed decision! Don’t stress, that’s where we come in. The lending specialists at Break Free Home Loans are experts in the Melbourne home loans market. We make it easy for you to compare home loans and find the best interest rate for your particular situation. Contact us today at 1800 300 777 to book a free consultation! We’ll help turn your dream home into a reality.

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About The Property Market In Australia

The property market in Australia is currently going through a very exciting period. Property prices are rising, especially in the major metropolitan areas, such as Sydney and Melbourne. This is great news for those who already own property. However, it can make buying a home seem out of reach for new homebuyers. That’s where Break Free Home Loans can help.

Comparing The Best Home Loans In Melbourne – Big Bank or Small Lender?

Homebuyers often have lots of home loan questions they want answers to. Is it better to get a loan from one of the Big Four banks or a smaller lending institution? Should I opt for a fixed or variable rate? Are rates less with a smaller lender compared to big 4 bank? Is online and mobile banking easy to use for different lenders? Are there ongoing fees? Which lender has better customer service, do you require face to face interaction like banks with branches or are you happy with online lenders or lenders which do not have a branch network?

These are all important questions that a home loan specialist can help you with.

At Break Free Home Loans, our mortgage brokers have years of experience helping people compare home loans and find the best product, loan & rate that suits their

needs and requirements. We know that every borrower’s situation is unique & different. This is why we take the time to get to know each of our clients to explore their needs & requirements. Only after thoroughly understanding their situation do we provide them with expert home loan advice. In general, the big 4 banks will have slightly higher home loan interest rates compared to smaller lenders. This is because the bigger banks have more overhead costs. However, this doesn’t mean that you should automatically rule out the big banks when you’re searching for a home loan. There are still some great home loan deals to be found at the major banks. . Large banks also provide a branch network which many customers find appealing compared to minimal face to face interaction.

Remember that it’s important to compare home loans from a range of different lenders, both big and small. That way you can be confident that you’re getting the best home loan product & best interest rate for your particular situation.

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How to Choose The Best Option

Finding the ‘best’ home loan option is taking into consideration what your individual needs and circumstances are. This includes your requirements and objectives. Some homebuyers will prefer a home loan with low-interest rates, while others might prioritise a no monthly fees home loan. While others will prefer a loan without offset or with offset account or fixed-rate home loans or split home loans where there is a portion of the loan which is fixed and the other portion is variable. When searching for a home loan, homebuyers need to be clear on their requirements and objectives and importantly on the features and benefits of the home loan itself. It must be fit for purpose and must be suitable to the borrower. Other factors include how long they want the loan for (term of the loan) and the amount of lending required to satisfy a customer’s objective.

The next stage of the process includes applying for the home loan which means the customer needs to start gathering their financial information for their broker to start the application process.

Types Of Home Loans

Example of a search of lowest home loan rates amongst 40+ lenders

There are several different types of home loans, with each serving a specific purpose. However, the most common types are a fixed home loan, a standard variable home loan, and an interest-only home loan. To decide which loan type best suits their needs, homebuyers should first understand the unique features of each home loan.

Do you now have a firm understanding of what you need from your home loan? Great, it’s now time to start shopping around and compare home loans from different lenders. This is where the lending specialists at Break Free Home Loans can help. Our team helps clients expertly understand and compare the best home loan interest rates. We’ll work with them across the whole process to maximise their chances of obtaining the best-suited home loan for your needs & requirements. Here is an overview of the some of the more popular types of home loans:

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By Rates

Many homebuyers view the rates charged for a home loan as one of the most important deciding factors. It is important to compare rates when you’re shopping around, however there are also other factors to consider. The home loan with the lowest rate might not be the best deal for you. It may not suit your needs in other ways.

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Fixed

A fixed home loan offers security to the borrower. The interest rate is set for a period of time, usually between one to five years. This type of home loan is best suited to people who are on a fixed budget. This is because they will know exactly how much their repayments will be each month.

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Variable

This is the most popular type of home loan in Australia. It offers borrowers the ability to make extra repayments, redraw facilities, and port their loan if they need to move. The interest rate on a standard variable home loan is usually lower than that of a fixed rate home loan. Most variable rate home loans come with a redraw facility. A redraw facility allows for extra payments to be made to the home loan which can be taken out at a future date if you require these extra funds for other reasons. These reasons could include unexpected bills, renovations to your home, buying a car or simply using the funds to spend on a holiday.

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Refinancing

The act of refinancing a home loan is when you switch from one home loan to another. This is usually to take advantage of a lower interest rate or to access equity in your home. You can also refinance your home loan to consolidate debts. This is where a customer may have several other loans or credit card debts with multiple interest rates and different minimum monthly payments. Consolidation of these debts into 1 loan can decrease or ease a customer’s monthly payment making this an option for many people. Also, consolidating small high interest debts into a low interest rate home loan can save on interest and pay off the smaller loans sooner if structured correctly. .

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Interest Only

An interest only home loan is where you only pay the interest on your home loan for a set period. This is usually between five to ten years. You will then need to begin paying off both the interest and principal of your home loan. Interest only loans are not encouraged for owner occupier home loans by lenders as they could delay people’s time to pay off their own home but are popular for investment home loans.

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Equity Release

An Equity Release home loan is where you can specify how you will use the funds from your home loan. The most common home loan equity release is to purchase a home or investment property. However, it could also include refinancing an existing home loan, home renovations, debt consolidation, purchasing a car, and much more.

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First Home Loan Buyer

A first home loan buyer is for those who are purchasing their first home. It often comes with special features and rates, such as a low deposit, holiday rate period, government subsidies such as grants or reduced stamp duty. First home buyers have a lot to consider when taking out their initial home loan. They must consider things like the best interest rate, and how much they can afford to borrow.

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Owner-Occupier

An owner-occupier home loan is for those who are buying a home to live in. This is the most common type of home loan. Owner-occupiers usually want to find the best interest rate and features for their home loan. Break Free Home Loans lending specialists can help with this entire process.

Investment

An investment property loan is for those who are buying a property to rent out. An investment property loan is great for investors who are looking to expand their property portfolio. An important thing to consider with an investment home loan is the interest rate. You must find an interest rate that is going to give you great returns.
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Improvement

A home improvement loan is for existing homeowners who are looking to renovate their property. This can add significant value to a home, and therefore it’s important to get the best rate for an improvement home loan. A home improvement loan can be used for a variety of purposes. This includes renovating a kitchen or bathroom or repainting the roof.

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For Specialists

Home Start-Up loans in Melbourne for specialists are for those who work in a particular field such as medicine, health, teaching, law, accountants & other professions. These home loans offer great benefits and can be tailored to the needs of each applicant. Our lending specialists can help you secure a business loans and home loan that’s tailored to your vocation, at a great interest rate. We have lenders who will waive any loan mortgage insurance (LMI) and offer greater incentives for this kind of lending customers. The waiving of LMI is normally allowed up to 90% LVR but some lenders (especially if you are their existing customer, will waive loan mortgage insurance (LMI) up to 95% LVR.

How To Get A Home Loan In Melbourne

There is a clear process that loan applicants will follow when working to get a home loan in Melbourne. This includes everything from conducting an initial home loan rate comparison to preparing documentation to deciding on the loan amount. It is crucial to be as prepared as possible when applying for home loans. By doing so, the process will be much smoother and a better outcome is more likely.There is a broad six-step process that can help you find and qualify for a great home loan. It is as follows:

Decide On The Amount Of The Loan

Homebuyers must have a clear idea about the exact amount they need to borrow to achieve their property goals. They should also be mindful of their current financial situation and take into account any other debts they may have. It’s advised to consult with a home loan specialist (such as us at Break Free Unsecure Business Loans) to get an accurate idea of how much you can borrow.

Check Your Credit Score

Lending institutions look favourably on applicants that have a good credit score. This means they will be inclined to loan them a higher amount. So, it is crucial to check your credit score to understand its current standing. By always paying your bills and credit card on time you are ensuring you have a not bad credit score. Making too many inquiries for credit is also detrimental to your credit score. For example, you should never make multiple applications for a home loan, credit card or personal loan. Speak to a lending specialist such as us at Break Free Home Loans to guide you accurately. Another danger to look out for is making enquiries with pay-day lenders. The lenders provide small loans quickly for emergencies. I recommend keeping away from these types of lenders as many of the big banks do not want to see enquiries on your records as it may suggest a person is struggling with their finances.

Choose The Type Of Loan

Are you going to be living in or renting out your property? Do you need major renovation work or a complete rebuild? The type of home loan best suited to you will depend upon answers to these questions. . Homebuyers should develop a ‘profile’ of themselves, to support their application for a particular home loan type. Another important factor in choosing the type of home loan is the rate and fees. As such the purpose of the home loan is important to consider when choosing the type of home loan as some unsecured loans are more or less expensive. Also, fees may have a large bearing on your final decision as well.

Check Your Income

Be sure to check your income is sufficient to make repayments. Also, make sure you factor in additional costs like home insurance. Lenders will take into account your current employment situation and earnings when assessing how much they are willing to lend you. Collecting proof of your financial status, such as payslips and tax returns, helps this process run smoothly.

Compare Loan Terms

When home loan shopping, it is important to compare the terms of different loans. Some home loans offer great interest rates but come with strict conditions, so be sure to read the fine print! Some things you may want to compare include interest rates, repayment schedules, and any additional fees or charges.

Apply

Congratulations on making it this far, now you should begin your application. Be sure to have all the relevant information and documentation on hand to make the process as easy as possible. The home loan application will usually include questions about your employment history, current financial situation, and other relevant details. We can make the application process simple and straightforward.

Expenses To Be Ready For

While applying for and getting approved for a home loan feels great, it is important to be fully prepared. Homebuyers should familiarise themselves with some of the expenses they need to budget for. By doing so, they will avoid any stressful surprises down the track.
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Fees

Home loans come with a variety of fees, including application fees, valuation fees, and general ongoing fees. By properly budgeting for these fees you’ll ensure everything is paid on time, and that you never incur late fees. Good budgeting ensures the overall process runs more efficiently, and helps home buyers keep on top of their responsibilities.

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LMI

Home loan LMI fees stands for Lenders Mortgage Insurance. If borrowing more than 80% of the home loan amount, lenders typically require that you insure your loan against default. This protects them in the event that you cannot make repayments. The good news is that this insurance can be added to your home loan amount.

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Deposit

Most home loans will require a deposit of about 10 to 20 percent of the home loan amount. The larger your deposit, the lower your LMI costs will be. It’s important to remember that you will need to have saved this money prior to applying for a home loan.

Lenders Offering Best Home Loan Rates

After making it this far you may now be wondering what lenders offer the best home loan rates. Should you go with one of the Big Four banks or a smaller lending institution? The answer is that it depends upon your individual circumstances. Some homebuyers want the stability offered by one of the Big Four. Others opt for the slightly lower interest rates offered by smaller lenders.
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The fact is that there is no straightforward answer to which lender offers the best home loan rates. By doing research and a home loan comparison you can find the best home loan rates to suit your needs.

Our brokers will talk you through your individual situation to best understand it. They will discuss your home loan options with you, and explain the benefits of going with particular lenders. By doing this, homebuyers will be in the best position to make an informed decision about what works for them. We’re proud to help Melbourne homebuyers understand their loan options, and get the best home loan rates in the market.

How To Calculate Home Loan Payments?

Calculating home loan payments is simple once you understand that there are two main types of home loans – variable rate home loans and fixed rate home loans.

A variable home loan’s interest rate will fluctuate in line with the cash rate set by the Reserve Bank. This means your repayments could also rise or fall. A fixed home loan has a locked-in interest rate for an agreed period of time. Do you want the security of knowing what your repayments will be each month? Or would you prefer the possibility of lower repayments if interest rates fall? Homeowners must decide which is more important to them.

In short, to effectively calculate home loan repayments, you need to know three things:

– The amount being borrowed (the principal)
– The length of the loan (the term)
– And finally, the interest rate of the loan.

Effectively estimate your repayments with this loan repayment calculator. Remember to include all the fees and charges that may be applicable to your home loan. At Break Free Home Cash Loans in Melbourne, we aim to make this process straightforward and simple. We have a team of home loan specialists who can expertly compare the market on your behalf.

Still Got Questions?

Hopefully, this guide has provided you with effective strategies for how to compare home loans. However, if you still have questions then keep reading. We have compiled a list of some of the most Frequently Asked Questions our brokers receive from homebuyers. Keep reading to find the answers you are after. And if you have a more specialised question then please reach out to our team on 1800 300 777. We would be happy to talk through your query with you, and provide you with expert advice. Break Free Home Loans: The only company you need to find the best home loans Melbourne has to offer.

If you’re a doctor, you know the importance of finding the right home loan. You also know that the process can be time-consuming and confusing. But with Break Free Home Loans, we make it easy. We specialize in home loans for doctors and we’ll work with you to find the right loan for your unique situation.

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Frequently Asked Questions

What Is A Home Loan?

A home loan is a type of loan that helps you to purchase a property. Home loans can be used for both buying established properties and building new homes. The money that you borrow through your home loan will need to be repaid, with interest, over a set duration. They are great for all types of homebuyers/owners. They allow them to purchase a home much sooner than if they were to save the entire purchase price themselves.

Which Bank Is Best For Home Loans?

It depends on the needs of the homebuyer. Do they need stability, low interest rates, fixed terms, significant renovation work, or something else? Answers to questions like these will help determine which bank is best suited to their needs. Some banks have strict repayment terms, whilst others will offer more flexibility.

Homeowners should closely consult with a lending specialist to find a bank that best suits their home loan requirements.

Who Is The Best Mortgage Lender In Melbourne?

There are many home loan lenders in Melbourne and it can be difficult to know who is the best. It’s important to do your research and compare home loans before making a decision. A good place to start is by reading reviews of home loan lenders online. This will help you understand what others have experienced with different lenders. You will then be in a better position to make an informed decision.

How To Get A Home Loan In Melbourne?

First off, congratulations on making the big decision to purchase a home. You should now be speaking with a qualified broker who can guide you through this whole process. They can help you throughout the entire home loan process. This includes identifying your home loan needs, collecting relevant documentation, budgeting, applying, and so on. Your broker can also compare home loans from different lenders to find the best interest rates for you. It is important to compare because even a small interest rate difference makes a big difference over the loan’s lifetime.We hope that this article has helped you better understand how to find the best home loans in Melbourne. Remember that Break Free Home Loans is your Melbourne home loan broker of choice. We have a team of experts who are ready to help you find the best home loan for your needs. Call us today on 1800 300 777 to book a free consultation! We’re home loan brokers who work for you, not the banks.

Contact our team

We love to hear from each and every one of you. Please feel free to reach out to us today!