Understanding Home Loan Options for Plasterers
As a plasterer, you've got unique income patterns and financial circumstances that mainstream banks don't always understand. When you're ready for buying a home, comparing loan options becomes crucial to find a mortgage that works with your trade-based income structure.
Home Finance & Mortgage Broker specialists like Tradie Home Loans can access Home Loan options from banks and lenders across Australia, giving you a broader range of choices than walking into a single bank branch.
Key Factors to Compare When Shopping for Home Loans
Interest Rate Types and Structures
Your choice between variable interest rate and fixed interest rate home loan products will significantly impact your repayments:
• Variable home loan rates fluctuate with market conditions, potentially offering interest rate discounts during competitive periods
• Fixed interest rate options lock in your rate for a set period, providing payment certainty
• Split loans combine both variable and fixed portions
Calculating home loan repayments across different rate types helps you understand the long-term cost implications of each option.
Loan to Value Ratio (LVR) Requirements
The loan to value ratio determines how much you can borrow against your property's value. Most lenders require:
• LVR below 80% to avoid lenders mortgage insurance (LMI)
• Higher deposit requirements for self-employed tradies
• Different LVR calculations for investment properties
Understanding LVR helps you determine the loan amount you can access and whether LMI costs will apply to your situation.
Application Process Considerations
When applying for a home loan as a plasterer, lenders assess your financial situation differently than salary earners. The Home Loan application process typically requires:
• Two years of tax returns and business activity statements
• Banks statements showing consistent income patterns
• ABN registration and business licence documentation
• Accountant-prepared financial statements
Mortgage Brokers understand these requirements and can guide you through a streamlined application process that presents your income in the most favourable light.
Determining Your Borrowing Capacity
Your borrowing capacity depends on several factors specific to trade work:
• Seasonal income variations common in plastering
• Business expenses and tax deductions
• Existing debts and ongoing financial commitments
• Property market conditions in your target area
Getting accurate borrowing capacity calculations upfront prevents disappointment later in the home buying process.
Pre-approval Benefits for Tradies
Home Loan pre-approval offers several advantages when you're ready to purchase:
• Demonstrates serious buyer status to vendors
• Locks in current home loan interest rate levels
• Provides clarity on your price range
• Speeds up settlement once you find the right property
To get pre-approved, you'll need to complete a full Home Loan application with income verification and credit checks.
Additional Features to Compare
Offset Account Options
An offset account links to your mortgage, reducing interest charges on your outstanding balance. This feature particularly benefits tradies who:
• Maintain higher cash reserves for equipment purchases
• Experience irregular income flows
• Want flexibility to access funds without redraw restrictions
Redraw Facilities
Redraw allows you to access extra repayments you've made above the minimum requirement. This flexibility helps manage cash flow during quieter work periods.
Understanding Additional Costs
Beyond the loan amount and interest rate, factor in these expenses:
• Stamp duty varies by state and property value
• Legal fees and building inspections
• Ongoing mortgage insurance premiums if applicable
• Annual package fees or monthly account keeping charges
Building Home Equity Over Time
As you make repayments, you build home equity – the difference between your property's value and remaining mortgage balance. This equity can later help you:
• Refinance to more favourable terms
• Access funds for business expansion
• Purchase investment properties
• Remove LMI requirements
Regular property valuations help you monitor equity growth and refinancing opportunities.
Working with Specialist Brokers
Specialist mortgage brokers who understand the trades industry can:
• Present your income to lenders effectively
• Access wholesale rates not available to the public
• Handle complex documentation requirements
• Provide ongoing support throughout the settlement process
They understand that plasterers often have strong earning capacity despite non-traditional income documentation.
Comparing home loan options doesn't need to be overwhelming when you have expert guidance. The right mortgage structure can support your property goals while accommodating the unique aspects of working in the plastering trade.
Call one of our team or book an appointment at a time that works for you to discuss your home loan comparison needs and find the right mortgage solution for your plastering business.
