When Your Family Outgrows Your Home
If you're finding that your current home in Boronia feels a bit too snug with the pitter-patter of growing feet, you're not alone. Many families reach a point where they need more bedrooms, a bigger backyard, or extra living space. The good news is that purchasing a larger home doesn't have to feel overwhelming when you understand your home loan options.
Moving to a larger property is a significant step towards securing your family's future and achieving long-term financial stability. Let's explore how you can make this transition work for your family's budget and lifestyle.
Understanding Your Home Loan Options
When you're ready to purchase a larger home, knowing what home loan products are available makes all the difference. Australian lenders offer various home loan packages designed to suit different family situations.
The main home loan options include:
- Owner occupied home loan: Specifically for properties you'll live in with your family
- Variable rate: Interest rates that move up or down with market conditions
- Fixed rate: Lock in your interest rate for a set period, typically 1-5 years
- Split rate: Combine both fixed and variable portions for flexibility
- Principal and interest: Pay down both the loan amount and interest
- Interest only: Pay only interest for a period, then switch to principal and interest
Each option comes with different home loan benefits that can align with your family's financial situation.
Building Your Borrowing Capacity
Before you start house hunting, it's important to understand how much you can borrow. Your borrowing capacity depends on several factors including your income, expenses, existing debts, and the loan to value ratio (LVR).
To improve borrowing capacity, consider:
- Reducing existing debts and credit card limits
- Building a larger deposit to lower your LVR
- Including all household income sources
- Minimising unnecessary expenses before your home loan application
- Getting Home Loan pre-approval to understand your budget
Ready to get started?
Book a chat with a Finance & Mortgage Broker at Craft Financial today.
Key Home Loan Features to Consider
When comparing home loan products, certain home loan features can save you thousands over the life of your loan. These features add value beyond just looking at current home loan rates.
Offset Account: A linked offset or mortgage offset account lets you park your savings to reduce the interest you pay on your loan amount. This feature helps you build equity faster while maintaining access to your funds.
Portable Loan: If you think you might move again in the future, a portable loan allows you to transfer your existing loan to a new property without breaking your fixed interest rate home loan or paying discharge fees.
Rate Discount: Many lenders offer interest rate discounts for professionals, existing customers, or borrowers with lower LVRs. These rate discounts can significantly impact your repayments.
Comparing Fixed vs Variable Home Loan Rates
One of the biggest decisions when you apply for a home loan is choosing between a fixed interest rate, variable interest rate, or split loan structure.
Variable Rate Benefits:
- Take advantage when interest rates fall
- Usually offer more flexibility with extra repayments
- Access to offset account features
- No break fees if you need to refinance
Fixed Rate Benefits:
- Certainty with your repayments for budgeting
- Protection if variable home loan rates increase
- Particularly valuable during periods of rising rates
Split Loan Benefits:
- Enjoy advantages of both loan types
- Manage risk while maintaining some flexibility
- A balanced approach for many families
If you're currently on a fixed rate that's expiring, now might be the perfect time to reassess your needs as you consider a larger home.
Managing Lenders Mortgage Insurance
When purchasing a larger home, you might need to borrow more than 80% of the property's value. This triggers Lenders Mortgage Insurance (LMI), which protects the lender if you default on your loan.
While LMI increases your upfront costs, it can help you:
- Purchase your larger home sooner rather than saving a 20% deposit
- Take advantage of current property market conditions
- Secure a property in your preferred Boronia location before prices rise
Some lenders offer LMI waivers for certain professions or may capitalise the LMI into your loan amount, affecting your calculating home loan repayments but allowing you to proceed with a smaller initial deposit.
Accessing Multiple Lenders
One significant advantage of working with a mortgage broker is the ability to access Home Loan options from banks and lenders across Australia. Rather than being limited to one or two institutions, you can compare rates and home loan packages from dozens of lenders.
This comprehensive home loan rates comparison helps you:
- Find the lowest rates available for your situation
- Discover lenders who specialise in larger family homes
- Identify home loan products with features that match your needs
- Negotiate better interest rate discounts
At Craft Financial, we work with a diverse panel of lenders to find solutions tailored to Boronia families.
Steps to Apply for Your Home Loan
Ready to make the move? Here's how the process typically works:
- Get Pre-Approval: Understand your budget before you start looking at properties
- House Hunt: Search for your ideal family home within your approved amount
- Submit Application: Complete your formal home loan application once you find the right property
- Property Valuation: The lender assesses the property value
- Final Approval: Receive formal approval and prepare for settlement
- Settlement: Keys in hand and move into your new family home
Having Home Loan pre-approval gives you confidence when making offers and shows sellers you're a serious buyer.
Planning for Your Family's Future
Investing in a larger home is about more than just extra space. It's about creating an environment where your children can grow, having room for family gatherings, and building long-term equity in a property that serves your family for years to come.
Whether you're moving from a smaller home in Boronia or relocating from nearby areas like Ferntree Gully, The Basin, or Wantirna, having the right home loan structure supports your goals.
Consider how your needs might change:
- Will you need lower repayments during parental leave periods?
- Do you want flexibility to make extra repayments when possible?
- Are you planning further renovations or improvements?
- Might you convert this property to an investment later?
These considerations influence which home loan products and home loan features will serve you over the long term.
Making Your Move with Confidence
Purchasing a larger home for your growing family is one of the most rewarding decisions you'll make. With the right home loan options and professional guidance, you can find a solution that balances your current affordability with your future aspirations.
The combination of favourable home loan interest rate environments, diverse home loan products, and strategic features like offset accounts means families in Boronia have more options than ever to achieve home ownership goals and invest in property that truly meets their needs.
Whether you're looking at a four-bedroom home with a backyard for the kids or a property with space for a home office, the right financing structure makes all the difference. Understanding your options, comparing current home loan rates, and working with someone who can access multiple lenders ensures you're making an informed decision.
At Craft Financial, we specialise in helping local families find home loan solutions that fit their unique circumstances. We'll work with you to understand your situation, explain your options, and support you through every step of the application process.
Call one of our team or book an appointment at a time that works for you. Let's discuss how we can help your family move into the home you've been dreaming of.
