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First Home Buyers

Home Loan Checklist

When you apply for a loan with The Mutual you should check out our handy checklist before you meet with one of our lenders.

This will give you an idea of what The Mutual is looking for when assessing your loan, and will also speed up the loan process.

How much should I borrow?

The quick answer is you can usually borrow as much as you can afford to repay comfortably. To work out how much this is, we look at things like your income, how much you spend each month, what other debts and assets you have, your credit history and the cost of the home you want to buy.

Importantly you should consider:

Your Lifestyle

Just because someone says you can borrow it, doesn’t mean you should. You need to consider how any loan repayments will affect your lifestyle and most importantly what you are going to miss out on in order to make the repayments you are looking at.


Some loan calculators are based upon a minimum standard of living and most don’t take into consideration that things change or unforseen events occur. Therefore, when using them add in a little extra to ensure that you have some breathing space.

Which loan is right for me?

Loans can be divided into two basic categories, variable and fixed rate loans. Fixed loans are great if you want certainty of knowing your loan repayments. Variable loans are good if you want more flexibility with repayments.

Summary comparison

Loan        Positives        Negatives
  • Flexible repayments
  • When interest rates drop your repayments may reduce.
  • When interest rates increase, your repayments may go up.
  • Your repayments are fixed so budgeting is easier.
  • During the fixed rate period, even if interest rates go up your rate stays the same.
  • Less flexibility in repayments
  • If interest rates go down, your rate stays the same.
  • If you choose to exit or switch, during the fixed rate period, break costs may apply.


If you have any questions, please contact us