Apply for mortgages
Applying for mortgages has become easier with the introduction of a mortgage auction website to the Australian market,
BidMyLoan
BidMyLoan is the first website in Australia where you can fill out one online application form and receive a range of mortgage “bids” from lenders as they step forward to offer you their most competitive interest rates and loan packages.
Lenders will not contact you directly, but through the site, giving you utmost control, discretion and enough time to contact only the lender that interests you with their offer.
When you
apply for mortgages at BidMyLoan, approval can take as little as five days, compared to a timeframe of up to 12 weeks through individual lenders that you approach in person or on the phone. Approaching individual lenders also duplicates paperwork.
The internet is an ideal space to research and apply for mortgages, with most lenders offering
mortgage application forms at their websites and quick turnarounds on pre-approved loan offers.
To apply for mortgages at a
home loan auction site, you simply need to follow four easy steps:
1. Fill out an application form at a website such as BidMyLoan
.
2. Watch lenders “bid” for your home loan as they offer you their most competitive rates.
3. Compare, choose and negotiate the best rate for you.
4. Finalise your loan with your chosen lender by providing the paperwork they require.
Lenders offer a range of loans that are designed to suit different needs when you apply for mortgages. Just some examples are:
- Fixed mortgage, which locks in a specific interest rate on repayments over a specific period of time, suitable if you are able to lock in a low interest rate.
- Variable mortgage, with an interest rate that changes according to the rate set by your lender, which will benefit you if you plan to make extra repayments because you won’t incur penalty fees.
- Split or combined mortgage, which allows you to “fix” part of your mortgage and keep the remaining portion “variable”, used by borrowers when they have the opportunity to lock in a low interest rate on the bulk of their home loan, but they still want to make extra repayments without penalty on some of the loan.
- Low-doc or no-doc mortgage, which requires less documentation or no documentation for the loan approval, suitable for a self-employed worker, someone with a history of credit defaults or a full-time employee who has not processed a tax return for a lengthy period of time.
- Line-of-credit mortgage, a loan facility that also operates as a fully functional transaction account, allowing you to make mortgage repayments and draw the same amount of funds back down, suitable if you believe you will need to draw down funds in bulk for emergencies such as medical treatment.
- Construction mortgage, which allows you to draw down small, lump sum payments in installments to finance the different stages of building construction while paying minimal interest.
- Interest-only mortgage, which requires repayments on the interest component of the loan only, not the principal sum, used effectively if you want to minimise monthly repayments, buy a more expensive property, or build or renovate a house.
When you apply for mortgages online at a mortgage auction website such as BidMyLoan, it’s important to look beyond the interest rate in isolation. Consider the entire structure of the mortgage, including monthly account keeping fees, establishment fees, and potential break or exit fees.
Your mortgage needs to accommodate your individual financial circumstances when you apply for mortgages, taking into account whether this is your first home or an investment property, if you are self-employed or a full-time employee, and whether you are refinancing or investing.
For more tips to help you apply for mortgages, go to bidmyloan.com.au or call 1300 BID MY LOAN.
This article was brought to you by BidMyLoan, helping first home buyers, refinancers and investors find a better home loan in Australia.
