Ask the Experts: Home loan basics with Bendigo Bank

Steven Thompson from Bendigo Bank Adelaide

Congratulations! Buying a home is one of life’s most important milestones. But there’s lots to learn when taking out a loan to make sure it’s the right one for you, writes Steven Thompson from Bendigo Bank.

At Bendigo Bank, we talk to all sorts of borrowers every single day. Here are some of their most common questions about home loans.

How much can I borrow?

Lots of different factors will determine how much you can borrow.

You will need to factor in things like your income, the type of property you want to buy and its price, as well as your savings and expenses.

It’s also a great idea to consider things like taking time off to start a family or study and how this may affect your ability to pay down your loan.

What is a deposit and why do I need one?

A deposit is your contribution to the cost of a house.

A deposit secures the house while you organise the rest of the funds through your home loan.

How much do I need to save for my deposit?

The minimum amount for a deposit is 5% of the total purchase price.

A 10% deposit is recommended for a first home buyer, comprising 5% for the house deposit and 5% for associated costs, including lenders mortgage insurance (LMI), stamp duty and conveyancing fees.

What will my repayments be?

Your repayments will depend on a range of different factors, including the size of your loan, the size of your deposit and how often you make repayments.

You may find you can pay off your loan sooner if you make repayments every fortnight rather than monthly.

Any advice provided in this article is of a general nature only and does not take into account your personal needs, objectives and financial circumstances. You should consider whether it is appropriate for your situation. Please read the applicable product disclosure statement(s) on our website before acquiring any product.

Phone 0437 679 813

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