The Federal Government is cracking down on lenders who don’t provide information about their lending rates and rates of repayment.
Key points:The Department of Finance is proposing to introduce a new FHA loan calculator to help consumers understand the FHA rates of interest they are eligible forThe Government says the calculator will help consumers make an informed decision about whether to borrow from a lenderWhat is a FHA Loan?
A FHA mortgage is a mortgage that’s purchased by the FHFA.
It is a fixed-term mortgage that entitles the holder to a fixed rate of interest.
The FHA is the federal government agency responsible for providing mortgage insurance for Australian households.
The interest rate charged by a FHHA mortgage varies depending on the type of mortgage, but it usually ranges between 3.8 per cent and 4.2 per cent.
The Government is proposing that all lenders, including the FHM, provide information on their rates of return and repayment rates on their FHA lending calculator.
The FHA Calculator has become increasingly popular with borrowers who are interested in finding out how much they can borrow.
The calculator currently allows consumers to find out the interest rate they can expect to pay and the repayments they can make.
However, the calculator also allows consumers the opportunity to enter a repayment schedule that will allow them to repay more of their FHAC loan within certain timeframes.
“The FHSA calculator is a valuable tool for consumers to use in their decision-making about the type and amount of their loans, and provides a range of options for comparison,” said Treasurer Scott Morrison.
“It’s a powerful tool for both consumers and lenders to help them make a informed decision on whether to use a loan.”
What is the FHC Loan Calculator?
The FHC loan calculator provides a user-friendly way to view the interest rates on your FHC (Fixed Income) loans.
It will provide the consumer with a comparison of the average rates of returns and repayments for different types of FH loans.
The Finance Minister said the calculator would help consumers to make an educated decision on the interest they can and can’t afford to pay.
“This calculator will be available on a range and will be used by both borrowers and lenders,” he said.
“Lenders and consumers will be able to compare rates and repayances on a wider range of FHC loans, such as a fixed income mortgage, a personal loan, and other types of loans, to help decide how best to allocate their time and resources.”
The calculator will provide borrowers with an easy-to-use and convenient tool for comparing interest rates and repayment schedules.
“For borrowers and consumers, the FHB calculator will allow lenders to compare interest rates to the average repayments on their loans,” he added.
“While lenders may choose to exclude some types of borrowers from comparison, we are encouraging lenders to do the same for all borrowers.”
How much does a FHC mortgage cost?
A mortgage can range in interest rates from 3.5 per cent to 4.4 per cent depending on whether the lender is an FHWA, FHM or FHM-FHA.
The cost of a FHB mortgage is dependent on many factors including: the total amount borrowed, the total number of properties the borrower owns, the length of the loan, the interest period and whether or not the borrower has a low credit score.
The rate range is based on the rate that the lender would charge for the loan if they had a fixed interest rate of 3.0 per cent, 3.2 to 3.6 per cent or 3.9 to 4 per cent for FHMA and FHCA loans.
The calculator will show the maximum amount of your loan that can be repaid and the repayment rate that you will need to pay if you choose to repay the loan.
To compare rates between the various FHOA and FHM lenders, the Finance Minister says the FHD calculator will also be used.
“If you are considering an FHD loan, then the FHS calculator will assist you in comparing the average rate of return on your loan to the other lenders available,” he says.
“Using this calculator will give you a better idea of what the average repayment schedule for your FHA loan is.”
However, if you’re not interested in comparing rates between lenders, you may want to refer to our FHA Rate Comparison Tool.
“What are the repayment schedules?
The repayment schedules available to borrowers are dependent on the length and severity of the FHTM loan.
These are designed to assist borrowers to keep their FHTMA, FHA or FHA-subsidised mortgage payments on track.
In some cases, borrowers may be able take out a FHD mortgage with a lower repayment schedule, meaning the lender will be required to repay some or all of the money they have borrowed.
For borrowers with a fixed FHA rate of repayments, there is also a repayment plan available for those with a higher rate of repayment that is more favourable than that of the lender