Paramount Private Estate Baldivis
Getting Finance

Getting Finance

Here are some handy tips to getting finance:

1. Save for at least 5% of your home deposit.
2. Determine how much you can borrow and what you can afford to pay.
3. Factor in 5-10% of your purchasing costs to cover fees, insurances and other expenses such as moving homes, furniture, appliances, utilities, rates and repairs.
4. Choose a home loan that best suits your circumstances; from fixed rate, to low doc, and variable rate. Discuss how these types of loans work with your lender or adviser.
5. Understand financial terminology; from honeymoon period, to offset account, to redraw and top-ups.

You can visit our Glossary of Terms to help you get better acquainted with financial lingo.

Other Considerations for Getting Finance

There are many factors to consider when getting finance to purchase a block of land.

A trusted financial professional can help you navigate all of these considerations and options available to you. It also helps to have an understanding of how your specific circumstances may affect the process of getting finance.

It can sometimes be a little harder to find lending options for purchasing land that is vacant, as opposed to getting finance for a house and land package. Your finance options may also be affected if you’re not planning on building on that land for a while.

The lender will want to know when you intend on building on the land. Generally speaking, lenders may consider someone who is building on the land within one year a lower risk than someone not planning on building for several years.

The timing of when you build can affect what lending options are available to you and the terms offered to you.

Here are some factors you should consider when getting finance:

• The rate. You will want to know how much interest you will be paying over the life of the loan and compare different lender’s rates.
• Lender fees. You also need to take care to note all lender fees that may apply to the loan you are considering and in what circumstances they may come into play.
• LVR (loan to value ratio). Some lenders may offer a lower maximum LVR for purchasing vacant land, so it’s a good idea to compare this specific element between lenders.
• Repayment options. You will want to have an accurate picture of whether you are able to easily manage the repayments and if you can make additional repayments if you wish without penalty.
• Other features. Lenders may also offer different options that can be beneficial to you. You may like to ask about features such as redraw facilities, offset accounts and loan split options.