Everyone wants to own a beautiful and presentable place to call home; a place where they can go to smiling, even after a long day of busy hours at the office or field. This said, there are many home loans lenders from whom you can seek financial advancement to see your dream come true without having to put mad effort in saving until you achieve your goal. Whether you want to buy a finished property, or you are into the business of buying and selling homes in Melbourne, there are just the right financial institutions for you in this great city of Australia and its environs.
All that most lenders will demand you have is in most cases a source of income (which can be business proceeds or your pay check), a good credit history (which will determine your creditworthiness) and among other things, a leverage or guarantee that they will recover their money. In most cases however, the property is self securing; meaning that it can be reclaimed in the event that you are unable to service the loan. Below are a few types of financial facilities that may be issued under mortgage loans by most financial firms.
- New property loan/1st home loan
This is the type of facility that you can get as a 1st time applicant or borrower from a lender. The facility may be issued for purchase or construction of new property. Some banks and financial service providers also issue loans for commercial rental apartments and buildings. Interest’s rates and terms may vary from institution to institution.
- Second home loan
As a credible and creditworthy borrower, you can borrow a second facility from a Home Loans Melbourne, sometimes even without having to complete payment of the first loan. Second home loans may allow for more debt consolidation and may be issued faster to a borrower who is considered credible enough and reputable in terms of their credit score. In some cases, interest rates are lower than the first facility, as they are considered safer by the lending institution.
- Home owner’s line of credit
A credible borrower can also be issued with additional financial advancements if they pursue it, with the mortgage property acting as equity for the second facility. They can also get a revolving line of credit from their Home Loans. These may be lesser funds such as for the purpose of venturing into business, home improvement, or other uses.
- Potential risks of acquiring a mortgage loan
Each and every credit facility may come with its own risks involved. For Melbourne loan homes, these may include:
- Losing the property in case of defaulting payment.
- Rates may be higher for a second home loan.
- A borrower can be heavily penalized in the case of defaulted payment.
- A defaulter may be denied future financial credit by other banks in case of defaulted payment, if they encounter a lack credit reference report.