Still got questions about your first mortgage? Or do you need a quick recap? Take a look at these frequently asked questions…

Still got questions about your first mortgage? Or do you need a quick recap? Take a look at these frequently asked questions…

Can I pay off a mortgage early?

Usually yes, but the terms of your mortgage might mean you pay a penalty for clearing the loan too early, since this will cost the provider in interest payments over time.
Most providers will let you overpay by 10% per month before you incur a penalty.

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How long does a mortgage last?

The typical mortgage lasts 25-30 years, although a trend for longer mortgages is emerging.
Technically, a mortgage can last anywhere from 6 months to 40 years, depending on your circumstances.

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How much should I borrow?

This depends on the affordability assessment your mortgage provider carries out. Factors like your living expenses and income will affect how much you can borrow.
Typically, a lender will cap the amount they can offer you at 450% of your annual income.

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How much deposit do I need?

This will depend on the loan-to-value ratio your mortgage provider is prepared to offer. You could secure a more competitive mortgage deal if you have a deposit of 25% or more.
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How are mortgage repayments calculated?

This depends on the type of mortgage you have and the lender. They also factor in things like the total amount loaned, the term length, and interest rate.
You can find a number of online repayment calculators to do the maths for you.

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Do I need Life Insurance to get a mortgage?

Some lenders might insist you have Life Insurance before they offer you a mortgage although they’re not legally required to. This is done to ensure the loan can be paid if you were to die during the mortgage term.
Life Insurance also gives you peace of mind in knowing your dependents wouldn’t be saddled with the mortgage if you weren’t here for them.

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Our collection of other guides will help answer any more questions you might have about Life Insurance.

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Homebuyer’s guide

A simple step-by-step guide for anyone looking to buy their first home.

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Mortgage Life Insurance

Also called Decreasing Term Life Insurance. Help protect your loved ones and pay off your mortgage.

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Get a Life Insurance Quote

Get your free, easy quote. With Beagle Street it takes less than 60 seconds.

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Help for first-time homebuyers