Are you looking to purchase a property in Australia? If so, you’ll likely need to take out a home loan and are looking for tips as a first-time borrower.

By the end of this article, you should understand how home loans work in Australia and what factors you need to consider when taking out a loan.

Questions in this article include:

• What is a home loan?
• What are the different types of loans available in the Australian market?
• What are the basic eligibility criteria in Australia?
• What should first-time borrowers consider in a home loan?

What is a home loan?

A home loan is the amount of money given to borrowers by a lender to buy real estate . It’s a secured loan, meaning the property serves as collateral for the loan.

Banks and other lenders offer various home loans with different features and interest rates. Making a home loan comparison will help you find the ideal one for you. You will have to make home loan repayments plus interest over an agreed period, typically 25 to 30 years.

A mortgage broker is an intermediary who can help you connect to lenders that meet your needs and objectives. Working with a mortgage broker may help you save time and effort as they have access to more financial institutions that would be the best fit for your personal circumstances.