How to get a loan to buy Perth property

First of all, you must prepare your personal information for applying for a loan. After all, each bank has its own different policies and the required documents are also different. Each bank has its own loan policy, so, The documents required will also vary. Next, let’s take a look at the necessary documents for a loan. 1. A letter from the employer and two latest salary slips; 2. Proof of salary income; 3. Overseas real estate investors need to provide government approval that allows overseas people to invest in real estate; 4. Self-employed loan applications need to provide two years of tax payment certificate; 5. A house purchase contract is required for a home purchase loan; 6. Copies of passport and driver's license; 7. Deposit statement. The amount needs to be greater than the down payment plus all home purchase fees and loan fees, proving that there are sufficient funds; 8. The latest arrears bill. For example, personal loan, car loan, etc.; 9. The latest credit card statement, proving that the loan applicant has a good repayment record; 10. The latest 6-month loan repayment statement. These materials are all necessary for everyone to prepare. After all, the bank wants to verify whether you are able to repay the loan.

Next, let’s take a look at the types of loans you can choose from when buying a house in Perth. There are many types of loans on the Australian market, each with different fees, features and interest rates. Investors can make a choice that is more suitable for them based on their own circumstances.

1. Standard floating-rate loan

Standard floating-rate loan should be the most common form of loan in Australia. The loan interest rate will fluctuate during the loan period. In other words, lenders will adjust their interest rates at any time based on economic conditions and the official interest rate set by the Reserve Bank. Market competition from other lenders can also affect interest rates.

2.Easy start loans

Easy start loans usually enjoy a relatively low interest rate within the first 6 to 12 months. This period is called the "honeymoon period." After the honeymoon period, the interest rate returns to the level of a standard variable-rate loan and the payments increase. Borrowers who have large expenses in the first year of the loan term may consider this product. (Perth Real Estate)

3. Fixed-rate loan

The interest rate of this product is fixed for a period agreed by both parties. Borrowers are free to set their own financial plans during this period without having to worry about an increase in repayments due to interest rate increases.

4. Offset loan

This product will link one of your deposit accounts to your loan account. The interest on the deposit account is directly used to offset part of the loan interest.