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Mortgage myths debunked

Oktay Sengoz

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25/10/2022

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1 min read

Time and time again, we are asked about common myths about obtaining a mortgage. We have complied some of the main ones we hear all the time and would like to debunk them.

You may be closer to obtaining a mortgage than you think.

Here are the top three myths

You need a 20% deposit to buy your home

This is a very common myth with first home buyers. It’s really hard to save 20% and most people won't attempt to apply for a long until they have a 20% deposit, which is a vicious cycle as the longer you wait, the higher the prices increase. The truth is that you can obtain a loan with as little as 5% deposit.

You cannot obtain a loan if you have bad credit

Most people either miss a payment or forget to pay their phone bill. The severity of the bad credit will determine which lenders will lend you the money and at what interest rate you will be charged.

You will be penalised if you pay off your loan sooner

This is simply not the case. You can pay as much into your variable loan as you like, and you won't be penalised. If your loan is on a fixed rate, you may incur penalties for paying more than the allowed amount.

Ask us any questions you may have to see if you can obtain a loan approval.

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