How to find home finance, Easy!

Money talks… but so do you!

We all know Perth is a pretty glorious place to live. But we also know that it can be pretty pricey, especially with all the great culture, events, and food on offer. And we haven’t even mentioned the beaches yet! So we completely understand the money fear. You know, the kind that wakes you in the middle of the night and demands that you get out of bed and start looking for spare change in the glove box (okay, just us?) 

And when it comes to making your mark on the world with a new home, you may feel a little unsure if you qualify for a loan (somehow, we don’t think that glovebox spare change will save us now). 

Knowing how to get your foot in the door

But it’s not all fear and shrapnel searching … we’ve got good news for you! It’s a lot easier than the big business banks make it out to be. It’s perfectly realistic to finance a home with a couple of grand in savings, pending you meet a few criteria and have an ace mortgage broker on hand. 

What’s that about a mortgage broker?

When you’re looking to find a home, and finance it, it really pays to shop around. This could be the difference between financing that extra-roomy home design (hello, extra room for this month’s hobby) or forking out for those special upgrades that make your mark something special.

But hear us out, there are over 40 major and minor lenders out there to consider. We’re betting that you might not have the time or energy to go through all of them (who does!?). So, we recommend when financing your home, team up with a mortgage broker you trust, who’s got the skills and the know-how to evaluate and negotiate the best possible rates.

We choose Oui Finance (you’ll see why)

These money gurus are our top pick. Not only are they independent from us (and every other builder) but they’re free to use, and as construction loan specialists, they know this type of loan like you know every line from Legally Blonde.  

Construction loans themselves are an incredibly specialised area; only 8% of loans in Australia are construction loans. So it makes sense to seek out experts in this field who can take that blindfold off the financing stage and avoid any delays down the line.

Keep in mind this is just a recommendation. You could pick any broker you felt comfortable with. At the end of the day, it’s your call.

What’s the job of the broker in home finance?

Your broker’s job is far more than just finance applications. They will certainly guide you through this stage, then they will help you access a range of banks and lenders, and they even have the power to speed up the approval process (by going direct). Oui Finance, or whichever broker you choose, will supply all the government grants and programs you’re eligible for and give you all the details on stamp duty.

It’s also their job to let you know if you qualify for any different (but no less remarkable) pathways to finance:

• Low deposit home loans – Aka the one for those with just a little in the bank. It all counts.
• Keystart home loans – Aka the one backed by the WA Government.
• Guarantor home loans – Aka the one backed by mum and dad. Love you guys. 

When it’s time to apply for home finance

You’d want your application to be assessed by a lender of your choosing, who then values your property. There’s going to be some big bucks on the line here, so they’d need a hot minute to weigh it all up. Normally it’d take a couple of weeks in the market just to be safe. 

Your application would get reviewed and analysed from every angle, so best not to keep your cards close to your chest at this point. 

• Personal ID (including passport and/or drivers license)
• Assets (cash, car, house)
• Debts (credit cards, car loans, Afterpay debt)
• Income (pay slips, interest, overtime, child support) 

Typically, you would have already received a ‘pre-approval’ from a bank (or lender) first. This means you have the (half) thumbs-up, showing an estimate of borrowing capacity based on your own financial circumstances.  Most pre-approvals are pretty much based on a whole host of conditions, because they don’t guarantee the money, they just indicate how much you could technically borrow. 

What affects borrowing capacity?

Everyone is keen to move from pre-approval to final approval. Here’s what can ultimately affect that all important final decision: 

• Changes to your personal circumstances (e.g. new job, or extended leave)
• Changes to government regulations (e.g. changes in grant criteria) 
• The valuation of the property (your favoured house and land package)
• Revised market rates
• Modification of the lender’s policy 

If the bank is happy with all these conditions, they’ll issue a formal finance approval letter, which is the second thumbs-up you’d need to show you have the funds to build a house. 

This is also known as unconditional approval, formal approval, or “full approval”. Any one of those is the green light you’re looking for. They show that the lender is satisfied with everything and has decided that they’re keen to lend you the money. Pheww, that’s a lot to digest in one blog. But, once you make it this far (in the process, not the article), you’re that much closer to making your mark on the world. 

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