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8 Questions To Ask Yourself When Looking For A Home Loan

8 questions to ask yourself before getting a home loan 1. How will I benefit? Are you currently renting? Buying an investment property? • Stop paying rent and own your home. • Later use that equity to buy an investment property. • Reduce tax. • Interest only terms. Consolidating debt? Refinancing? • Reduce your overall repayments. • Lower monthly repayments. mc 2. Is now the right time? No one knows what the Australian housing market will do... But consider this: The official cash rate is at a record low of O 2.25% The national median price 14.1% has increased by 7.1% 6.1% 3.4% year on year Sydney Brisbane Melbourne - Australian Property Monitors (House Price Report, December Quarter 2014) QBE's recent Australian Housing Outlook 2014-2017 report predicted continued growth in most capital cities. 3. Can I afford it? • Your income should cover all your expenses and debts. • Invest in a property: the rent will usually cover your mortgage repayments, or will be just $50-$100 short a week (or less!), and take advantage of negative gearing. 4. How much deposit do I need? Generally, 5% If you don't have 10% of the purchase price you can get a guarantor loan or 5% First home buyers receive grants and waivers reducing the deposit required. a gifted deposit for other costs 5. Would I qualify for a home loan? Lending policies are complex and vary across lenders. Your employment status and location of the property are just two factors that affect your application. Seek advice from a mortgage broker to increase your chances of getting approved. 6. What's the best interest rate I can get? Interest rates can vary greatly between lenders. There can be huge differences in fixed, split and variable interest rates. Get expert guidance from a mortgage broker. 7. Should I fix, split or go variable? Fix your rate Ride the ups and downs with a variable rate. Split your mortgage and get the best of both worlds. and lock in the good times. Pros: You can have peace of Pros: Great if interest rates Pros: You get features like an mind by planning your fixed are coming down and you offset account with the repayments in advance. want to make unlimited extra variable component, and a competitive interest rate with your fixed component. Cons: You miss out on any repayments. interest rate drops, you can Cons: It will work against you only make limited extra when rates are increasing. Cons: You're limited in the repayments and you don't get an offset account. extra repayments you can make on the fixed component. 8. What are the features and are they for me? There are two main home loan packages in Australia. Basic package: Professional package: • Fairly competitive rate. • Really competitive rate. • No extra repayments. • A free credit card which allows you • No ongoing monthly or annual fees. to earn frequent flyer points and receive discounts. • Good for purchasing an investment property. It's cheaper and, after all, your aim in investing is to reduce your costs and maximise your return. • Offset and redraw facility. • Insurance discounts. • An annual fee (usually around $395). (D HomeLoan experts 1300 889 743

8 Questions To Ask Yourself When Looking For A Home Loan

shared by homeloanexperts on Apr 19
Are you looking for a home loan? Here are 8 questions you should be asking yourself right now!



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