Here is a six-step guide to help you understand the home buying process and get you your investment property sooner.
|Step 1: Find out how much you can borrow|
Your borrowing power is determined by your income, financial commitments, your current savings and your credit history. You also need to take into consideration your living expenses, so you can repay your loan and maintain the lifestyle you are used to.
ANZ can generally lend up to 90%* of the property value, however you will need to show you have at least 10% of the property value in real savings. Lenders Mortgage Insurance may apply.^
The How much can I borrow? Calculator will give you an indication of the amount you can borrow. This is an obligation-free and totally anonymous tool that will help you determine a price range for the search for your new home.
The ANZ Loan Repayment Calculator can help you to calculate your loan repayments, how long it could take you to pay off the loan, as well as the loan amount based on a repayment amount entered.
|Step 2: Find out the costs|
Once you have arrived at a ball-park figure for your potential purchase price, you will need to take into account the other charges that will apply.
One of the biggest initial outlays you will have is the deposit, which is usually 10% of the purchase price. You should also allow additional funds (approximately 5%) for the taxes, stamp duty, legal costs and insurance associated with buying a property.
The ANZ Home Loan Fee Calculator can help you to determine the costs associated with buying or refinancing a property, and calculate the full loan amount needed to complete your property transaction.
|Step 3: Find out which loan is right for you|
There are many different loan features and fees to be considered, such as home loan rates, mortgage offset, redraw and ongoing fees to name a few, and there are different loans to suit different needs. We can make choosing a home loan easier by providing key information that will help you make a well-informed decision.
|Step 4: Get pre-approval|
Be prepared - get approval in principle.
Approval in principle means you are given finance approval 'in principle' (if you have fulfilled the lending criteria) prior to purchase.
This means that you:
|Step 5: Search for a property|
There are many ways to search for a property, one of the easiest ways it online. Visit www.realestate.com.au.
Real estate alert
Real estate alert asks you to specify your desired property criteria and will email you when there is a new property listing that matches your requirements. Visit www.realestate.com.au.
When inspecting a house, take our home inspection checklist (PDF 45kB) with you to record the parts of the house that you like as well as dislike. It also gives you tips on what to look for, like checking the water pressure.
|Step 6: Buy your home|
Make an offer
If you are buying at an auction, you are required to pay a deposit (usually 10% of the purchase price) immediately.
If you are buying privately, you are usually required to pay a holding deposit (can be anywhere between $2,000 and 10% of the purchase price).
Contract of Sale
The Contract of Sale, prepared by the agent or by the vendor's solicitor, outlines your offer, the date of settlement, and any conditions that must be met before the sale goes ahead. Discuss the Contract of Sale with your solicitor before you sign it. There are two kinds of offers - unconditional and conditional.
This is an outright offer to buy a property. You should be 100% sure that this is the property you want and that you have access to the money to buy the property. Once the vendor has accepted your offer, you are legally obliged to go through with the sale.
A conditional offer is also a binding contract, provided that all your conditions are satisfied. You can only back out now if one or more of the conditions are not met.
If you have pre-approval, you can finalise your loan by contacting your ANZ Branch Manager or call the Home Loan Hotline on 1800 100 641.
How to apply
Call us on 1800 100 641
The Contract of Sale will state the amount of time you have to settle the conditions. When all conditions are met, the offer becomes unconditional, the sale will go ahead and the property will be yours.
How the settlement process works
Send us an enquiry
8:00am to 8:00pm (AEST) Monday to Friday,
8:00am to 6:00pm (AEST) Saturdays and Sundays.
* Subject to credit approval criteria. Different maximum loan amounts may apply to specific property types and locations. Eligible existing ANZ customers must have had a retail lending product for greater than 6 months with a satisfactory credit history.
^ Lenders Mortgage Insurance (LMI) is paid by the borrower and protects ANZ in the event that the borrower defaults and a shortfall arises following the sale of the security property. ANZ usually requires LMI where you borrow more than 80% of the value of the security property (depending on the type of the property).
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