Frequently Asked Questions
There’s a lot to get your head around when it comes to buying your first home.
From deposit amounts to the approval process and final settlement,
the path to homeownership can be confusing. The good news is we are here to help.
Home loan pre-approval (or conditional approval) means that a lender has agreed, in principle, to lend you money towards the purchase of your home but hasn’t proceeded to full or final approval.
A pre-approved home loan serves as a valuable instrument for prospective homebuyers, as it provides insight into the affordable amount for purchasing a property and allows you to look with confidence.
Applying for a traditional home loan can be overwhelming. That’s why we’re thrilled to present an alternative.
With HAS, your 2.5% deposit is boosted to a substantial 20% LVR, thanks to our innovative solution. Additionally, you will need an investors support, along with demonstrating your ability to service a first and second mortgage.
Having entered the market with a low-interest rate deposit boost, you’re now considering refinancing and consolidating your first and second mortgages, thereby closing HAS.
With HAS, there is a 3-year minimum term. At the end of this period, you have the flexibility to either remain for the full duration of the facility, which can extend up to 30 years or opt for refinancing.
At this stage, you’ll need to pay out your original facility, along with a share of the capital growth.
It’s strongly advised to consult with a broker to determine the most suitable course of action for your current situation.
Yes, you can. If you are eligible for the First Homeowner Grant or stamp duty concessions, you can use these to contribute to your 2.5% deposit.
When someone buys a home with HAS, they need an investor to place funds in the residential property trust.
If that’s you, you can be reassured you are investing in a registered trust, bound by full financial regulatory compliance. Your risk is spread, because you are effectively investing in all the properties within that trust, not just the property being purchased.
You also get a regular return on your investment.
HAS is a great way to help your children onto the property ladder. As parents, you can invest in the property trust, with mitigated risk and regular returns, and your money is separated from your child.
To be eligible for a home loan, you will need to demonstrate the ability to manage two mortgage repayments, have a 2.5% deposit, investor support and a good credit score.
We can connect you with our network of accredited brokers who can assist you with your home loan requirements.
HAS is open to Australians, including first-time homebuyers, investors, NDIS and those re-entering the housing market.
Investors continue to enjoy our fixed interest rate of 3.25% for a 5-year term, aligned with the first mortgage’s maximum 30-year term.
We cover the additional deposit required to meet the 20% deposit to avoid LMI. Regardless of your initial deposit, we ensure the remaining amount.
The inclusion of our first 3-year facility allows repayments solely on the primary mortgage, preventing any setbacks. This alleviates pressure during rental income fluctuations.
As long as your primary mortgage with one of our first lenders remains under 80%LVR, HAS will cover the additional eliminating the need for LMI
You’ll need to ensure you maintain at least 2.5%LVR equity in your home to proceed with the refinance.
Refinancing will entail exit fees from your current mortgage and new application fees. Your broker can provide more details. With HAS, all fees are rolled into the loan, so no upfront payment is required.
If you’re receiving regular childcare and family tax benefits, you can include these as part of your standard income for servicing purposes. An accredited broker can navigate this with you.
With our product, you’ll avoid LMI and higher interest rates. With a deposit boost at an interest rate of 3.25% interest only, you not only increase your borrowing capacity but also enjoy reduced monthly repayments. This means you won’t have to compromise on the house of your dreams.
Unlike government schemes, our product isn’t limited to first home buyers. We understand that life circumstances change, and individuals may be re-entering the housing market, including those who have owned property in the last 10 years. Our product is inclusive, catering to all home buyers – whether first-timers, those returning to the market, or investors.
Unlike a family guarantee, our solution provides a buffer between you and your family member, ensuring separate transactions. Additionally, you receive a return on your investment, which is spread across a pool of properties.
Absolutely! Our solution is open to both retail and wholesale investors. We’ve had employees, communities, individuals, and family members support our initiative. It’s open to anyone interested in contributing to their community’s homeownership journey.
All potential investors are required to consult with a financial advisor to determine if this investment aligns with their financial goals and risk tolerance. Our funder is Storehouse Residential Trust – a public residential trust. A PDS is available on their website here
https://www.storehouseinvestments.com.aue-residential-trust
