Strata Units/Villas/ Town Houses - What Is Involved If Purchased?

In Australia, Strata Units or Strata Town Houses are basically not that complicated as it may sound, yet it is said quickly.

The Oxford Dictionary meaning for 'Strata' is  (http://www.oxforddictionaries.com) is very simply - the Plural word for 'Stratum'. And then the Oxford Dictionary meaning for 'Stratum' is:

noun (plural strata /-tə/)

• 1a layer or a series of layers of rock in the ground:a stratum of flint
•  a thin layer within any structure:thin strata of air

• 2a level or class to which people are assigned according to their social status, education, or income:members of other social strata
•  Statistics a group into which members of a population are divided in stratified sampling:allocation of sample units to strata

Origin:

late 16th century (in the sense 'layer or coat of a substance'): modern Latin, from Latin, literally 'something spread or laid down', neuter past participle of sternere 'strew'

In Latin the word stratum is singular and its plural form is strata. In English this distinction is maintained—it is incorrect to use strata as a singular or to create the form stratas as the plural: a series of overlying strata not a series of overlying stratas, and a new stratum was uncovered not a new strata was uncovered.

So now are you confused? Well, I was uneducated until 2 

weeks ago. Now I am semi-qualified to explain to you  how 

it works in Australia.

Basically in means that you don't pay for Building

insurance when you own a Strata Titled property,  as you 

are sharing a common property. Yet Quarterly levies need

to be paid, which covers  building insurance and 

maintenance and repair of property. Improvement for 

anything related to the property need to be approved by a 

the owners corporation.

For further information you can research the following 

websites, for assistance:

NSW Fair Trading - Strata Schemes 

Strata Community Organisation

So Strata Units are  are Strata Titled units commonly 

known as a block of Units and Strata Town House can be

 joined or freestanding.


Type of Strata Units:

                                                         

Types of Strata Townhouses: 

First one is sharing a common wall, the second one is free-

standing.

          

How Much Deposit Do I Need Before I Purchase A Real Estate!

 This will depend on the saving you have and  how much savings you are allocating towards your property purchased, allowing for what type of costs you will be incurring.

There is costs previously mentioned before: solicitors costs, Stamp duty, moving in costs and depending how much you borrow, you may be asked to take out mortgage insurance, based on the level of borrowings required against the purchase price.

So for example if you are purchasing a property for $430,000 in NSW the stamp duty cost is currently $14,840.00.

Click here for a sample of mortgage Stamp Duty Based on your area  *This calculator also calculates the mortgage registration fee and transfer fee.

Based on the level of borrowings against your purchase price, we will use 2 examples if you borrow $400,00 on the property purchase of  $430,000 - the extra mortgage insurance is $12,000. If is  borrowings of $43,000 and the purchase price is the same then
there is no mortgage insurance is usually payable for  loan to value ratio of 80 percent or below (always check with your mortgage lender to confirm).

Click Here for a Mortgage Insurance calculator


So this gives you and idea of what deposit is required. A suggestion is to get a pre-approval loan from your mortgage lender, before shopping around!

How Do You Choose Your Agent When Purchasing A Property?

The simple answer is there is no necessity to choose a real estate agent, to purchase a real estate property unless you have had good dealings with a real estate through your own personal dealings, families or friends.

The real estate property you eventually buy may even be from a real estate agent you may not even know about, yet.

Some Real Estate agents are under 'time pressure' to talk to you, and sell the property, unless they see and feel that your are the interested buyer. This depends on the questions you ask and the interest you show.

My experience in buying properties is limited: 50 percent actually searching for a property via any real estate agent and 50 per cent knowing which property to purchase and the agent came with it!

You're probably thinking what does that mean? Well all I can say is our first property purchased (my wife and myself), we had to search and look for properties  and the real estate agent drove us to the property to have a look at and it was purchased.

The second and third properties, we had seen ourselves as they were around our vicinity all the agent had to do was show us.

The recent one we have purchased, was like the first  one we purchased, we had to search and look around until we were happy, the agent that we had purchased the recent property, had the time, patience and allowed genuine 'thinking time' as we thought about deciding to purchase. This was a great feeling  that I had never experienced as real estate is  the  most important purchase in any one's life! The reason I found out is she  is a 'one-woman real estate business' so she is not pressured for time!

Next question is do you trust the agent or go by your first house inspection or even both?

Click on this blog for possible answers

Factors That Contribute Property Purchase Decisions

It is a general goal in life that when growing up in Australia, we all want to own your home. No one can blame you for that but that will depend on many choices you have made or are making and  people around you that have raised you to the person  you are today.

It will also depend om your financial status and if this is one of your life goals which you will definitely aim for. 

As discussed in previous posts there maybe some hurdles to overcome, to ascertain if you are ready to purchase with take home loans.

Once you sort factors like estimate purchase price,saving, expected expenses and calculate the viability of ensuring home loan repayments can be made.

On the other side, emotionally and psychologically, you have to be prepared to bid for the future property that you may be happy to  bid with your partner, with the property most liked. And if not successful, don't be disheartened if you don't get it. Maybe next one will get you there!

Do it with passion and love, that will make it easy to deal with!

Do Not Purchase Property If You Are Not Ready!

This sounds so simple and it is, yet a lot of us that want to purchase property (using loans) usually want to do it as quick as possible. The younger the better!

Generally that is the thumb rule, yet rushing into it without doing your own homework, may one day place you into deeper debt. So what I always suggest is whatever amount of the Home Loan interest is add  at least, 5 percent worth and see with your income and expenses whether you would be able to pay this comfortably, This assuming interest rates where that high. That means check out your capacity to pay.

Ensure that if that if you are paying off your mortgage with your partner, should one of you lose income or have income reduced, you are both in a capacity to cover your mortgage repayments. The other thing you can do is add lump sum payments as you pay your account off and your withdrawal facility will increase, which can be used a s back up to cover income shortfalls!

If the house you are buying is not the house you want to purchase and you are having doubts because of all different variables then there  a need to  not proceed. Cut your small losses now, before it could escalate to be a lot bigger loss.

You have got to be really happy with the property you buy, if not you will be miserable and disappointed. Cheer up it is not all doom and gloom, there is  an opportunity to delay buying and come back in a stronger financial time.

If  there is any sort of doubt in purchasing a property, pull out immediately before mistakes could be made. I t is better to  purchase a different property if you are not ready at a later time!

Do You Trust Real Estates In What They Say To You - When Buying Property?

Every Real Estate Agent is a sales person and myself, as a former sales person (not Real Estate),  I know we are talking to our potential customers as if we have the best product to sell.


Each agent is a human being like you and me. They have a job to do and  yes they maybe looking after their own interest but the focus is getting you the property you wan to buy with them as well as the the best sell price for the seller. He or She is the go between buyer and seller, that is why they are called Agent.

An experienced  Real Estate Salesperson will take time with each customer knowing how important it is to listen and then respond at the right time. They will provide their quality time to you so you get the service you desire.

Initially, you don't have to meet the agent to purchase  real estate. With the electronic internet era we live in, the initial viewing of properties is done on the internet though websites like 
Domain and Real Estate*. Here you will find they are user friendly, by search by area , type of property seeking and price range.

One you have found your lists of property then comes the chance to visit your Real Estate agent or contact first and then then visit, so you can view and prepare for the holding deposit.

Like everything in life, we judge people by their first reactions and agents will do the same. Some will treat you as a number, some may not  have the time for you and fob you off and others will take that little extra interest in you.

If the agent is suggesting there is only one house available to see, that maybe only for that agency. Usually in non peak periods there are 8-9 house on the market ready to view but in a high buying market one on the market and next day sold. So you have to check the market for a week or and see how many properties are being sold or  not, in that time.

If the agent has many properties to sell, he will ask you have you got any properties in mind?

If he or she takes you to see a property straight away then he or she has the time and not many other potential customers to show properties.  Yet, if he refers to showings then he or she is limited in time to assist you. The keener you are the keener he or she is, to show you the property.

If you do not trust the real estate agent you meet, you may not have the confidence to purchase the property but consider this you are not buy the real estate agent you  may be buying the  property he is showing you!

Ask relevant questions  regarding the property like is under rental, what are the local council zoning plans for the future, nearest shops, schools, churches, bus tops and train stations (if not known). You may  need to ensure you mind is clear about the property. Legally you purchase the property the way you see it, so remember details of the property, so when final inspection comes any issues can be raised.

By this time, you will know  whether what the agent is saying to you when purchasing the property.

If you do not make the decision by the end of the showing it was a waste of time for the agent but not for  you!

*There maybe others but currently these are the mains websites to use, unless you choose others

Where Do You Go For Finance To Purchase A Property?

This is an independent quest that really needs to b e answered by yourself and this is only to be used as a guide.

As a purchaser you cannot buy a property if you haven't done your financial homework. I mean walk into a real estate agent, pay the initial deposit (normally called a holding deposit) and find out no one or no banks, mortgage lenders and other financial institutions will  provide you and/or your partner with a home loan. By doing this you have wasted your own time and also the Agents.

So after working out deposits saved (if any), and deducting all costs associated with the purchase of the property from the potential purchase price of the property. Then you do know how much you may need to borrow!

I have searched for list of banks, credit unions building so on the internet and have found an details on APRA (Australian Prudential Regulatory Authority  Click Here for the List. 

Also located Mortgage & Finance Association of Australia (MFAA) Click Here for details of MFAA

If there is a need search for for financial you can also explore them as well. One thing you need to keep in mind it they have to reputable and researched by yourself , so you are confident they will provide you with that home loan instead of going broke.

Obviously another rare financial lender could be members of your families, at least for a short term.  A lot of families will be in a position to not to assist as they may not have the finances to assist. This is when this could make families be closer together or  could also set them apart well apart if something goes wrong. The families that do decide to assist - must  know what the situation happens if  any or all borrowers are unable to assist with mortgage repayments. 

Contingency plans must in place to ensure mortgage repayments are maintained , if not contract your lending creditor before any sale of your property also (known as foreclosure of property).

Some ideas of contingency plans could be selling your car, unused household  items, stock market shares, using up  any extra savings, renegotiating with other creditors reduce repayments under Financial Hardship', which could result being short term.

Also you need to ask your lender the obligation the creditor has if there is a default of payment on the loan due to  reduced financial income and possible affects  to the borrower if it happens and what can they do if  'Financial Hardship'  occurs.

It is like this, most Australians do not ask many questions of borrowing a home and may not understand their full obligation, where as purchasing a car you will wan to ensure the car is in good working condition, warranty details (if any). Same with all the above mentioned banks and financial organisations you want to know how their  loan insurance works, financial hard policy and also what happens if you pay extra payments.

Now it is up to you!

Who Do You Consult Before Purchasing A Property?

This is a question that depends how strong emotionally and psychological you are.

Sometimes confusion can occur with the more people you speak too, but that is if you have never purchased a property before. Yet by talking to people and listening to different views, ideas you are then well adapted to start finding your new 1st home. Who knows you may purchase more properties later on.

Probably the most important people to speak too is your immediate family, like your parents, siblings and close friends if they have purchased a property before no matter how recent or long ago it was. Their stories will not necessarily end up as a duplicate copy of yours.

Obviously, joint discussions and reviews with your partner (if you have one) from other views or purchasing property can persuade  you to alter the way you will decide to purchase property.

Solicitors, financial advisers, if you know builders (that could help), pest controllers, property house inspectors, financial lending institutions, local Council officers for checking the  for  and lastly real estate agents.

Real estate agents will invite you to visit the property (if you are so keen), after seeing it on the internet to check out the realty of the future property, you are prepared to purchase.

Every advice or discussion you have with people may or may not influence your decision but may assist you in your planning. Every decision you make must be made with with care, without haste and with a full commitment that  you or you and your partner are financially viable to take on a property with a loan. If there is any slight doubt, pull out straight away. You can always purchase later, when you are all feeling 100 per cent confident that all will go well.

With every decision you make, there is that percentage of risk thus is your percentage of risk is little  or none, that is the right time to purchase property. Good luck!

When Is The Right Time To Buy?

The answer to 'When is it the right time to buy?' can only be answered by yourself*. The simple answer is when you are ready!

Many factors can make your decision or joint decision with your partner, but the decision must be made with care and consideration to others.

The factors that can made your decision are the following: cost of the property, savings obtained, interest rates, cost towards renovating if required before moving and the estimated property value after any capital expenditure has been made to improve the residence. Will you live in it straight away or will you rent it out? Have you got enough funds to cover the mortgage repayments plus (for example) and repayments that would cover an additional 5 per cent**.

THE FACTORS:

Cost of Property:

This is depends on what amount are to prepared to spend based on what properties are available and your maximum purchase price you will pay. Also, how much of the purchase price will you need to borrow and how much deposit will be used without borrowings from acquired savings?

You also would have budgeted to cover further costs and  covering Home Loan  repayments, that occur as soon as property is settled.

Click for costs before purchasing a property
Will you purchase free of the market or via auction sales. A lot of people thin with an auction that you have to wait until the day of auction to purchase it. No, you can make a reasonable offer and it may be accepted by the purchaser - then it is pulled away from the auction sale.


If in any doubt, then it may not be the right time to do it and it can be revisited when you are fully prepared.

Also with your partner time has to be set aside so that  you are both happy with they will be  purchasing financially.  It is not good if one party is sad and not ready for it!

*yourself  - may included any other partners prepared to  enter into Home Loan agreement.

Savings Obtained
The simple policy is the more you save the less you borrow from financial institutions! A good policy is to provide deposits on Home Loans of minimum 20-25% - thus reducing your lending amount.

So imagine if the property you want to purchase is worth $500,000 and you have now saved up $200,000 then your required borrowings and repayments will be reduced. Some financial institutions provide 100 per cent  Home Loans - these provide potential risks for the borrower/s as if there is a default in repayments, in due time there could be a foreclosure sale of the property and you will be left with a residual amount to pay back.  This could also happen whilst paying any deposit, yet the residual balance would be reduced compared to nil deposit.

Yet, the question always raised while saving for the deposit, is this the right time to buy? That depends if enough deposit satisfies yourself to purchase your own property.

Saving is easy as you make financial conservative decisions that allow you to  positively save hard, the more save the  easier it will be to purchase the property you want. Steer away from families/ friends providing you with  loans and this can lead into possible disputes in the long run - where you may need family /friend support later on.

Interest

Interest can be interesting to work out on what home loan is the best to use to suit the type of property amount you will purchase.  Keeping in mind that interest rates fluctuate month to month based on Australia's Reserve Bank Board setting the cash rates, which will determine your current rate of interest charged, unless you have locked in interest is part of or full interest rate.

There is standard variable interest rates which will start off at a reasonable interest rate for a locked in period of years, and then it will jump up to the standard variable interest rate, which will offer redraw, top up and allowing extra/lump-sum payments to be made. An option maybe to offer to change to a fixed interest rate Home Loan.

Basic variable rate is a variable rate of interest but with limited transaction there may be little or no provisions that the standard variable interest rates provide.

Fixed Interest rates are what they are fixed rates for the term of the loan. This is good when interest rates are high and your your is fixed at a lower rate but can be disastrous if current interest rates are low and you are repaying back at a higher rate of interest.

Combinations of standard variable interest rates and fixed  interest rates can be  provide on your home loan account, this can be used if you want to use both methods of repaying interest to suit  your current and future lifestyle.

Interest Only Home Loans are generally used for purchasing properties with high values. At the end of the Home Loan the remaining principal is paid, some interest only Home loan can also include reducing the a bit of the principal as well.

Does this all sound interesting to you now?

Moving costs/Renovating before you move in:

Before you purchase the property, there maybe decisions to be made based on  how the property appears and if there any improvements/renovations required to be done before you move in.

 A lot of people under budget on these renovations, so it is important to add  at least around 20 percent extra just in case further funds will be required. The unused funds, if any, (on completion of the renovation) can then be applied to reduce the mortgage. Which is a great benefit to yourself.
It depends on what is required. Some houses area ready made houses and that makes it easy, leaving a quick 'spring  clean' before you move in.

Some houses may need  painting done to change dislike wall colors, a change in room designing - can be costly especially if not really required. Additional costs prior to moving should be limited, if the house is in need to be repaired and renovated and it is substantiated, then go ahead and proceed with it.

So by the time you decide to buy you will know when the right time to purchase a property.

*Yourself - includes your partner. ** the percentage depends of  how conservative are with your expenses, even working on a higher percent and the funds are available to cover the extra percentage that places you in a very strong stance to cover future interest rate rises.

How Much Savings Do I Need? Saving Money Grows!

This is an important question that will determine your purchase power to purchase the property you desire. Another important factor is the timing of when you are ready to purchase the property as well.

When purchasing a property you will have to take into account the savings element that you have as an individual or jointly saved. Some time with joint partners, one partner may have save more than the other and the other may have debts to be paid first or little savings. A good policy is to be debt free as much as you can no matter  what the financial lending institutions say to you. They are not really any experts as to the amount of money you need to save as they will  just give you advice on the maximum loan available to you.

The amount of loan repayments will be determined by the amount of funds you have saved individually or jointly. Some purchasers may not need to save and obtained funds from inheritance from deceased estates, gifts from family  or friends (especially with assisting for deposits) or other financial avenues (without lending)'

Even people receiving benefits maybe able to save with small amounts until permanent jobs are obtained and then save more.

I personally cannot tell you what amount you need to save but the obvious action to take after budgeting yourself/yourselves is to place a proportion of your income into an account. Saving Money Grows with your high hopes especially if you keep in line with your budget savings.

You are definitely heading the right direction with the more money you save as not only do you have to organise the holding deposit and then the approximate 10% deposit and if can inclusive of Solicitors Costs a and State Stamp Duty and  other pre-purchase costs.

For example if your combined income is *$1500 per week and with strict budget processes in place you are both renting/living with parents and able to place up to $750 per week into a saving account (that could give higher interest than a normal account) then in after the folowong:

10 weeks $7,500 saved, 
20 weeks $15,000 saved, 
30 weeks $22,500 saved, 
40 weeks $30,000 saved, 
50 weeks $37,000 saved and  
52 weeks $38,500. 

Now this could place yourself in a position to purchase a property, pending on the type of property you want to purchase and the price range. Should you which to save for a longer period to purchase a higher priced property and also be able to maintain mortgage repayments, even if  interests do  go up in the future. Interest on this savings could assist you with paying for Solicitors costs, State/Territory Stamp Duties and pre-purchase costs.

The more savings you have the less borrowings you will need and also the less interest to be paid to the bank. Also have a saving record provide you with an easy track record to transfer those savings to your mortgage repayments The other important aspect is financial institutions do not mind if you use the full amount of you pre-approval home loan but if you come back to them with a reduced amount to borrow they scratch their heads, as their proposed  lending goes down.

After you have saved all funds, to determine your deposit you make on your purchased property, all pre-purchased costs should be paid from your pocket - balance left over deposit on property and then that allows you to determine your borrowings. Basically the more deposit you have the  more equity you will have on your property, the less the financial institution has of the equity on property.

*This amount is determined by individual income  or  joint income and is only used as an example.

Budget Yourself And You Will Get There!

One important factor before purchasing your own property  is  a very strict budget must be adhered too , so that the mortgage payments are maintained.

Budgeting for yourself when you allocate funds for living expenses and  then mortgage some funds should be left over so that further savings can be raised for future lump sum payments or to cover an unexpected bill.

Even social expensive habits of cigarette or cigar smoking can affect your repayments if there is a lot used to purchase these items. If  this habit is not used their is a healthier lifestyle for that person/people which present a surplus financial gain to the household item, assisting in making repayments or making lump sum payments on the mortgage loan.

Lifestyle changes may be important too when budgeting as  a reasonable social life should not be ignored: entertainment and amusements, relaxations and having good times. A lot of people like to socialize, yet socializing can be expensive if it is extensive and ends up affecting your repayments to your mortgage.

Most people allocate funds for food and drinks for the week and what ever left over is allocated for bills, daily expenses, entertainment and  also mortgage.

Couples, I have found can possibly arrange their finances differently based on family commitments, compared to individuals that purchase properties.  If both parties are receiving approximately the same amount of income a strategy, could be put in place that one' income could pay the mortgage and if any left over  is paid into savings whilst the other income covers the daily living costs and anything after that could be placed into savings.

So if it takes a couple hours to discuss future budgets to purchasing  properties then this quality time used that assists yourselves in he initial decision making process.  Careful mutual consideration should be made on each part of the budget decisions are being made on and also encourage reviewing the budget even after purchase of the property has been made. 

Before You Go Looking For A House - In Australia

A majority of young people have the attitude of saying, 'I can't afford a house!'. They may be working on minimum or above minimum wages and with their current lifestyle have over exceeded their life expenses.

We have financial institutions, that encourage the use of credit, by use of credit cards, without proper explanation of it's use. For example young people may be given a credit card for $1,000 credit limit  and only pay the minimum payments expecting no one to chase them up (whilst the interest is building).*

Before credit came in you had to have the money saved before you would make  any purchase being shopping or even larger items. It is the 'In' thing to have a credit/master card or visa card but it is an 'out' thing when it is not fully paid.

Then  you have the people that know how credit cards work and even with that, only use debit cards (where there is no credit being used up - it is you own money  you are spending).

From this you maybe be then thinking am I in a position to purchase a property, can I do it?

Each person will have different circumstances that they are involved in, which ascertains their current financial position.

Most people will purchase properties jointly with their partner or even a family member of trust. Trust is going to be the big thing that allows this home ownership to continue based on joint discussions and confirmation that it is the right time to do this. 

I can't say what is the best or right time but usually it is a simply, little or no outstanding debts and a substantial initial deposit inclusive of other pre-purchase costs.

Pre-purchase costs are material items you will need to us in your own home,  State stamp duty costs, lawyers fees- which will include home inspection fees and reports.

Imagine that you and your partner want to buy the best house you want too and statements like this make your dream hard to reach. This is because you are both starting from scratch! Don’t let it despair both of you – make it spur you both together to acquire the optimum in savings, to hence go forward and meet your dreams.

Scenario 1:

Borrowings $349,000      Property Purchase Price    $380,000

Joint Savings (Deposit)  $31,000

                                               

Extra Costs:    Estimate Solicitors Costs                    $3000

 (Inclusive of building inspections, pest control, Title Registrations & search fees $212)

Stamp Duty on Property                 $ 14,000

Loan Approval Fee                                600

Lender’s Mortgage Insurance             8,900

(may be required by lender)

                                                                         

Building & Contents Insurance           2,000 per annum

                                                                                

Moving costs                                        $10,000

(Inclusive of household furniture to accommodate the new home owners)

Total maximum cost may be $428,500, unless Lender’s Mortgage Insurance is not required then the maximum cost would be $416,900. Keeping in mind of total borrowings is $349,000 this  now means that the maximum remaining funds required to purchase and move into the property would be  from $36,900-$48,500.

*After ten years the loan could be reduced to $260,000 -  thus providing equity on property compared to date of purchase $100,000, not including current property valuation let’s say $430,000 thus making the equity on property $150,000.

Scenario 2:

Borrowings $219,000      Property Purchase Price: $250,000

Joint Savings   31,000  

                                   

Extra Costs:  Estimate Solicitors Costs                    $3000

 (Inclusive of building inspections, pest control, Title Registrations & search fees $212)

Stamp Duty on Property                   $ 7,300

Loan Approval Fee                                 600

Lender’s Mortgage Insurance              2,410

(may be require by lender)

Building & Contents Insurance           2,000 per annum

Moving costs                                        $10,000

(Inclusive of household furniture to accommodate the new home owners)

Total maximum cost may be $275,310, unless Lender’s Mortgage lenders Insurance not required then the maximum cost would be $273,900.  Keeping in mind  of total borrowing borrowed $219,000 this  now means that the maximum  remaining funds required to purchase and move into the property would be  from $23,900 -$25,300.

As a general rule will require a minimum 5 per cent of the purchase price as a deposit. You normally will get a pre approval Home loan before you purchase.

"Lenders have recognised the difficulty that many aspiring home

owners experience when searching for now extinct no deposit 

home loans. Many lenders are now offering low deposit home loans

that allow borrowers up to 95 per cent of the purchase price."

Repayments Examples: based of $40,000 each net income

	Repayments	Interest paid
Monthly	$2,440.26	$529,493.60
Weekly	$562.78	$528,936.80
Fortnightly	$1,125.77	$529,100.60
Half monthly paid fortnightly	$1,219.62	$529,126.40

Calculations based on loan amount of $349,000 with an interest rate of 7.50% and a loan term of 30 years.

Basic Repayment Calculator

	Repayments	Interest paid
Monthly	$3,724.73	$991,902.80
Weekly	$859.24	$991,414.40
Fortnightly	$1,718.67	$991,562.60
Half monthly paid fortnightly	$1,861.92	$991,582.40

Calculations based on loan amount of $349,000 with an interest rate of 12.50% and a loan term of 30 years.

Basic Repayment Calculator

	Repayments	Interest paid
Monthly	$1,531.28	$332,260.80
Weekly	$353.15	$331,914.00
Fortnightly	$706.43	$332,015.40
Half monthly paid fortnightly	$765.32	$332,030.40

Calculations based on loan amount of $219,000 with an interest rate of 7.50% and a loan term of 30 years.

Basic Repayment Calculator

	Repayments	Interest paid
Monthly	$2,337.29	$622,424.40
Weekly	$539.18	$622,120.80
Fortnightly	$1,078.48	$622,214.40
Half monthly paid fortnightly	$1,168.37	$622,226.40

Calculations are based on loan amount of $219,000 with an interest rate of 12.50% and a loan term of 30 years.

The above illustration of repayments are based on interest flats rates but the difference shows what could happen if interests rise to  another 5 per cent maximum –  If repayments can  be met  on the 5 per cent on joint income, both partners should view it as if there was a loss of one income , which may or may not happen. If one’s income can maintain repayments of the high repayment plan, then that is the type of borrowing both should take on board.

First thing first, both should have current full time job at least 6 months maintained, ninety-five per cent of the home loan can be borrowed by lenders but the more savings you have the less you borrow.

There are many types of Home loans in the market: interest only and principal and interest, variable and fixed rates. Seek the right ones for yourselves.

Extra repayments on your Home Loan provides a withdrawal facility, which shows you how much you can redraw in the future and use (if necessary) but the Home Loan goes up, by the amount withdrawn.

Check out further figures for mortgages:

http://www.yourmortgage.com.au/calculators/                     

* Simply, Credit is credit not a loan  but it can end up to be a loan if not paid in full as contracted.