Buying a home
How to apply for a home loan from the comfort of your couch
July 17 2022
Today you can order almost anything straight to your front door — even a home loan specialist. Here’s how.
Get pre-approved for a home loan
A pre-approval tells you how much your lender is willing to loan you by providing an estimate of your borrowing capacity. This lets you house shop with confidence, because you’ll know the largest amount that you can afford when you’re ready to get stuck into applying for a home loan.
It’s good to note that pre-approval isn’t the same as actual approval. A pre-approval shows you what you’re likely to receive, but it’s not confirmation of a home loan. The main purpose of a pre-approval is for you to understand your borrowing limits so you can narrow down options in the lead-up to applying for a mortgage.
If you already know your budget, you can skip this step and start focusing on your home loan application.
Research home loan options online
It’s easy to stick to familiar options when considering which loan provider to choose. It’s convenient to look for the biggest names, or the bank your parents introduced you to in primary school. But being open-minded may allow you to access discounts and lower fees, while searching for home loans online can present far more options. And the best thing is, you don’t even have to leave your living room!
This online research should also extend to types of home loans, not just providers. There are various payment setups out there, and you need to find out what’s best for you. For starters, the two main types are fixed and variable home loans. To sum it up, fixed home loans are loans with interest rates that remain unchanged for a period of up to five years. Variable loans have interest rates that fluctuate according to the current market. It’s important to settle on a loan type that’s right for your circumstances.
A fixed loan may suit you if you’re trying to create a strict long-term budget plan. You’ll always know how much interest to expect, and how much your payments will be. A variable loan may save you money if interest rates plummet; conversely, it may wind up costing you more if rates start to climb. Home loan preferences vary from person to person and there’s no standard home loan for any given demographic. If you’re torn between the pros of both fixed and variable loans, you could even get both. You can opt for the full loan amount to be split across the two types.
Got questions? Talk to a specialist
- How mobile lenders can help you buy a home or refinance
- Paying a home deposit—what’s involved and when to do it
- What is pre-approval and when should I get it?
Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs.
Home Loans are provided by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No. 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available on request. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product.