Understanding the Basics of Buying Near Family

Moving closer to family is one of life's most rewarding decisions. Whether you want to be near ageing parents, support siblings, or give your children the chance to grow up with their grandparents, buying a home in Hawthorne puts you right in the heart of a community that values family connections.

At LBK Lending, we understand that this decision often comes with unique financial considerations. Let's explore how to make your dream of living closer to family a reality through the right home loan approach.

Why Location Matters for Your Home Loan Application

When you're applying for a home loan to move closer to family, your chosen location can significantly impact your borrowing capacity and loan options. Hawthorne's property market offers diverse opportunities, from charming character homes to modern apartments, each with different price points that affect your loan amount and loan to value ratio (LVR).

Lenders consider several factors when assessing your Home Loan application:

• Your financial situation and income stability
• The property's location and market value
• Your deposit size and LVR
• Current interest rate environment
• Your existing home equity (if you're selling to buy)

Exploring Your Home Loan Options

As your local mortgage brokers, we can access Home Loan options from banks and lenders across Australia. This means you're not limited to just one lender's products – we can compare variable interest rate and fixed interest rate options to find what suits your circumstances.

Here are the main loan types to consider:

Variable Home Loan Rates
These rates fluctuate with market conditions and often come with features like offset accounts and redraw facilities. Many lenders offer interest rate discounts on variable loans, particularly for owner-occupiers.

Fixed Interest Rate Home Loan
With a fixed interest rate home loan, your repayments remain consistent for the agreed period, typically one to five years. This can help with budgeting, especially if you're managing the costs of relocating closer to family.

Getting Pre-Approved: Your First Step

Before you start house hunting in Hawthorne, getting Home Loan pre-approval gives you clarity on your borrowing capacity. The application process involves providing documents such as bank statements, payslips, and tax returns to demonstrate your financial position.

Home Loan pre-approval helps you:

1. Understand your realistic price range
2. Calculate home loan repayments for different scenarios
3. Move quickly when you find the right property
4. Negotiate with confidence at auctions or private sales

Understanding Additional Costs

Buying a home involves more than just the purchase price and home loan interest rate. Budget for these additional expenses:

Stamp Duty
Queensland's stamp duty rates vary based on the property value. First home buyers may be eligible for concessions or exemptions.

Lenders Mortgage Insurance (LMI)
If your deposit is less than 20% of the property value, you'll likely need to pay LMI. This protects the lender but adds to your upfront costs.

Other Costs
• Building and pest inspections
• Legal fees
• Moving expenses
• Connection of utilities

Making the Most of Your Financial Position

If you currently own property, your existing home equity can boost your deposit for the new purchase. We can help structure your finance to either:

• Sell first, then buy with the proceeds
• Buy first using equity, then sell (bridging finance)
• Keep your current property as an investment

Each approach has different implications for your Home Loan Rates and overall financial strategy.

The Application Process Made Clear

Our streamlined application process focuses on understanding your unique situation. We'll gather the necessary documentation, compare loan products, and guide you through each step. This includes calculating home loan repayments across different scenarios so you can make informed decisions.

Key documents typically required:
• Recent bank statements (usually three months)
• Income verification
• Asset and liability statements
• Identification documents

Choosing the Right Loan Features

Modern home loans come with various features that can save you money over time:

Offset Account
Links to your home loan and uses your savings balance to reduce interest charges. Every dollar in your offset account is a dollar less you pay interest on.

Redraw Facility
Allows you to access additional repayments you've made, providing financial flexibility for unexpected expenses or opportunities.

Moving closer to family in Hawthorne is more than a property purchase – it's an investment in relationships and community. With the right home loan structure and professional guidance, you can make this transition smoothly while maintaining your financial wellbeing.

Call one of our team or book an appointment at a time that works for you. Let's discuss how we can help you secure the right home loan to bring you closer to the people who matter most.