FAQs

Deposits usually range from 5% to 20% of the property’s purchase price. A larger deposit often results in better mortgage terms and lower monthly payments. Assess your savings and financial capacity to determine the deposit you can comfortably afford while keeping in mind any additional costs associated with buying a home.

Apart from the deposit, be prepared for various additional costs, including legal fees, property inspections, insurance, and possibly moving expenses. It's wise to budget for these extra costs to avoid any financial surprises and ensure a smooth home-buying process.

Lenders assess your borrowing capacity based on your income, existing debts, and credit history. They use this information to calculate how much you can afford to borrow and repay comfortably. Obtaining a pre-approval can provide a clearer picture of your borrowing potential and streamline your search for a home.

The timeframe for securing a home loan can vary, typically ranging from a few weeks to a couple of months. This depends on factors like the complexity of your application, the lender’s processes, and how quickly you provide necessary documentation. Staying organized and responsive can help expedite the process.

Getting a home loan with a poor credit history can be more challenging, but not impossible. Lenders might offer loans with higher interest rates or require a larger deposit to mitigate the risk. Improving your credit score before applying and seeking guidance from a mortgage broker can improve your chances of securing a loan.

Fixed interest rates remain constant for a specified period, providing predictable repayments. Variable rates can fluctuate based on market conditions, potentially altering your repayment amount. Choosing between them depends on your preference for payment stability versus potential cost savings from rate changes.