Break Free Home 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 Relocation Loan
Relocation loans are a type of loan that is specifically designed to help people who are moving home. It can be used to cover the costs of relocation, such as stamp duty, legal fees, and moving costs. Relocation loans can also be used to finance a new home or investment property in another state or territory. Before selling your current home, the lender will advance you the money to buy and move into your new place. The sale proceeds are utilised to pay down or eliminate the mortgage on the new property once it is completed.
Loans for moving home are popular amongst homebuyers, as they can save them money on relocation costs. However, it is important to compare different loans to find the best deal for your specific needs. Make sure you compare the interest rate, fees, terms, and features of each loan before making a decision.
Contact Break Free Home Loans today if you are looking for a loan to help with relocation costs. Our experienced brokers can discuss moving loans with you in detail, and help you decide whether it’s right for you.
How Much Can I Borrow
Why are moving loans so popular amongst homeowners? Because it is a convenient, accessible way to significantly save on relocation costs. But how much can you actually borrow?
The answer to this question will largely depend on the lending institution that you choose and your personal circumstances. Relocation loans typically start at $2,000 and can go up to over $75,000. This should be enough to cover the cost of moving house, as well as any other associated expenses. Applicants should make an effort t figure out what their relocation expenses will be. This way they can apply for a loan size that matches their budget and expenses.
Types Of Relocation Loans
There is a variety of relocation loans available to loan applicants. Which one best suits you will depend upon your particular requirements and circumstances. Applicants should take the time to go over the different relocation loan types. This increases their chances of making an informed decision about which loan type best suits their needs. To help you make an informed decision, here is an overview of some of the most popular relocation loan types:
A relocation loan on a variable rate means that the interest rate charged on the loan will fluctuate over time. This is in line with changes to the cash rate set by the Reserve Bank of Australia (RBA). As a result, your repayments could increase or decrease over time. A variable relocation loan is suited to those who are comfortable with a degree of uncertainty.
A fixed-rate relocation loan is great for people who want a set repayment amount each month, providing stability and certainty. The interest rate will not change for the life of the loan, regardless of what happens with the cash rate. This type of loan is often suited to people who are on a strict budget or prefer predictable repayments.
The bridging loan is a short-term relocation loan. It helps ‘bridge the gap’ between the purchase of a new property and the sale of an existing home. Bridging loans are typically used when people need to move quickly. As a result, they can’t wait for their current home to sell before buying a new one.
The portable relocation loan is where the mortgage is ‘portable’, meaning it can be transferred from one property to another. This is beneficial for people who are unsure of future plans and may need to move in the near future. The interest rate on a portable loan is usually slightly higher than a standard variable rate loan.
What To Look For In Loans For Moving House
It’s crucial to find a relocation loan with an interest rate you are comfortable with. This means that you won’t be overpaying on your loan and can afford the repayments. Note that relocation loans often have higher interest rates than standard variable rate loans. It’s important that you compare rates from different lenders to find the best deal.
Terms And Conditions
Min And Max Amount
Relocation loans typically have a minimum borrowing amount of $2,000. Different lending institutions have various maximum lending amounts, depending on their internal policies. Some may even go up to over $100,000. It‘s important to remember that the amount you can borrow is dependent on your income and ability to make repayments. Try to work out how much you need to borrow to help narrow down your search.
Your monthly repayments will be determined by the amount you borrow, the interest rate, and the loan term. It is important to remember that relocation loans are typically short-term loans with higher interest rates. So, your monthly repayments will be higher than if you’d taken out a long-term loan with a lower interest rate.
How To Apply And Get Approved For The Loan In Melbourne
There is a structured process that must be followed when applying for a relocation loan. Failure to follow it increases the chances of your application not being approved. Therefore, applicants are advised to consult with the lending experts at Break Free Home Loans. They can explain the finer details of this process, and help you avoid any pitfalls.
The first step is to compare relocation loans from different lenders. It’s important to compare not just the interest rates but also the fees and charges associated with each loan. Once you have found the right loan, you can finally begin the application process!
Every lender has its own specific requirements that must be met in order for an application to be approved. However, there are some general requirements that almost every lender will ask for. These include:
- A good credit history
- Stable employment
- Proof of income
- A firm idea of the loan amount you need
- Supporting documentation regarding property values, proof of identity, and so on
If you can meet these requirements, then you’re well on your way to being approved for a relocation loan!
The Application Process Explained
Congratulations on making it this far. The application process requires you to fill out an official application form with your chosen lender. This is where you’ll provide them with all the information they need. It will require detailed information about your relocation, income, employment, and more.
Applicants should remember to ask any and all questions they have about the relocation loan process. This can be regarding fees, terms, rates, and so on. Doing so ensures that there are no unexpected surprises down the track. Remember, the team at Break Free Home Loans can make this process easy. Give us a call today on 1800 300 777 to book a free consultation.
What’s The Difference Between A Relocation Loan And A Bridging Loan?
While they may serve a similar purpose, there is a key difference between these two loan types. A relocation loan is a home loan that’s specifically designed to help people cover the costs associated with moving house.
On the other hand, a bridging loan is a short-term loan. It’s typically used to finance the purchase of a new property before the sale of an existing one is complete. Have a clear understanding of your specific situation to work out which loan type is most suited to you.
Choosing The Best Moving Loans Lender In Melbourne
Some good news is that there is a huge range of Melbourne lending institutions offering relocation and bridging loans. This includes the Big Four banks and smaller financial institutions. Here is a list of some financial institutions that offer competitive, fair relocation loans:
- Commonwealth Bank
- Liberty Financial
- And many more, depending on your circumstances.
Do You Have Any Questions? We Are Ready To Answer
We hope that you now know more about the relocation loans process. Hopefully, this article has answered any and all questions you may have. To make things easier, we have included the answers to some Frequently Asked Questions our brokers receive. Please read over them to see if your query is addressed. If not, then give us a call on 1800 300 777 and we would be happy to assist you further.
Relocation loans can help people who are looking to move for work or personal reasons. It can be a difficult process, but our mortgage brokers are always here to help it go more smoothly.
Frequently Asked Questions
What Is A Relocation Loan?
A relocation loan is a type of loan that helps cover the costs associated with moving to a new home. It helps homeowners with things like relocation expenses, down payments, and other moving-related expenses.
What To Look For In A Loan For Moving House?
It comes down to what the loan applicants’ personal needs are. How much do they need to borrow? How long do they need to repay it? Do they want a fixed or variable interest rate? Once an applicant has clearly identified their needs, they can begin looking for a loan that meets them.
How Much Can I Borrow With A Relocation Loan?
This also depends upon your individual circumstances. Having a high credit score and low debt-to-income ratio will usually mean you can borrow more money. The same is true if you have a large down payment saved up. However, if you’re self-employed or have trouble proving your income, you may not be able to borrow as much. It is important to research several different lending institutions to find one that offers a loan closely matching your needs.