The abundance of choices on different home loan products means finding the right loan may take a long time and can be exhaustive at least. The reality is that different situations, such as how much capital or deposit are you putting upfront and which areas you are looking to buy, are just some of the considerations when looking for the best home loan suiting your particular situation. How much deposit you have and the bank’s valuation to what you are looking to buy also determines Loan to Value Ratio (LVR) for your particular loan.
“Buying a home is a major financial decision and commitment. Ensuring you get the best financial advice for your particular situation and property you are looking to purchase is imperative”, Director and Mortgage Broker Mark Polatkesen of Mortgage Basics.
Tips when finding the best possible home loan in Australia
There are so many lenders out there offering home loans and other financing solutions that a typical first home buyer is almost certainly faced with terminology challenges and choice on the choosing right financier often becomes too hard. The following tips can help you get the lender or loan product that delivers the service, flexibility and rates you need:
- The interest rates - Central bank rates have been coming down steadily but not every lender is following. Make sure your lender of choice is up to date with their interest rates and what takes place in the market. If choosing a variable interest rate product, remember to calculate your repayments leaving room for a higher interest rate. If unsure, talk to a professional mortgage broker or financial advisor.
- Consider the service requirements - Remember that buying a house requires a lot of paperwork. Make sure you choose a lender which assist and does most of the hard work for you, for example FHOG (First Home Owner Grant) applications if you are buying your first property in Australia. Choosing an independent and experienced broker is a good way to make paperwork a breeze as the broker will do most of the hard work for you.
- Get to the bottom of the REAL cost of borrowing - The interest rates, different processing fees and calculations especially when comparing different loan product can be confusing. Make sure you are able to understand all the associated fees with different products so that you don’t get any surprises and the settlement process goes smoothly. A professional mortgage broker calculates and presents the best options for you inclusive of all the fees, making your decision easier.
- Contact a financier/broker who knows exactly how to deal with First Home Buyers - If buying your first home, ensure that your lender or financier understands the impact of First Home Owner Grant is on top of different government incentives ensuring you don’t miss out.
The reality with the current home loan market is the loan products and different lenders' offering change constantly. To get the best possible loan and a great return for your real estate investment talk to an experienced Mortgage Broker.
A Mortgage Broker’s job is to ensure you get the home loan product best suited for your particular financial situation and help you through the process of lender selection, finance pre-approval, unconditional approval (final approval), settlement and even stage payment processes.
Mortgage Basics offers free mortgage advice and has access to more than 25 Australia's leading financiers including banks. The service is free as the lenders provide a commission on referral of customers.