Mortgages

What is a mortgage?

• A type of savings account?

• A loan used to buy a home

• A government grant for first-time buyers

• A monthly rent payment

Which of the following is NOT an advantage of buying a home instead of renting?

• Building equity

• The ability to customise the home

• Paying less rent

• Home value may increase over time

What is the typical deposit percentage required to buy a home in Australia?

• 5%

• 10%

• 15%

• 20%

What does LMI stand for in relation to buying a home?

• Large Mortgage Insurance

• Loan Management Insurance

• Lenders Mortgage Insurance

• Legal Mortgage Insurance

If you don't have a full deposit, what might you need to pay for a mortgage?

• Mortgage Insurance

• Property taxes

• Home maintenance fees

• School fees

What is the difference between a fixed and variable interest rate?

• Fixed rates change regularly, but variable rates remain the same

• Fixed rates remain the same, while variable rates can change

• Fixed rates are higher than variable rates

• There's no difference

Which of the following would be considered a 'fixed' interest rate?

• Your interest rate stays the same for the whole loan term

• Your interest rate changes every month

• Your rate is set by the government

• Your rate adjusts based on your income

Which of these options will lower your monthly mortgage repayments in the short term?

• Principal and interest repayments

• Interest-only repayments

• Paying a higher deposit

• Switching to a fixed rate

What is one of the main benefits of using a mortgage broker?

• They guarantee you the lowest interest rate

• They help you find the best loan for your needs

• They pay your mortgage for you

• They offer free housing

How can you prepare in the 6 months leading up to buying a home?

• Spend all your savings

• Avoid making a budget and saving money

• Improve your credit, save for a deposit, and create a budget

• Wait until you find the perfect home.