A loan whether it is for your own home or an investment property is a long-term commitment. This is why putting the effort into finding the right loan is so important.
There are many options that have to be considered, for example what would happen if your situation were to change? This could easily occur to due job loss or illness, so you need to make ensure your mortgage will have the flexibility to change with your circumstances.
The first step in finding the right loan for you is to identify whether the loan is for your new (or existing) home or is it for an investment property?
The next step to finding the right property loan for your needs is to understand what factors are going to be important to you. Here are some questions to get you thinking about your loan needs.
- What are the loan priorities?
- Fixed rates versus a variable interest rate?
- Would it be better to have a combination of fixed and variable interest rates?
- Is it better for you to know exactly what your regular repayments will be or will you be comfortable with repayments that vary according to interest rate movements?
- Do you need the flexibility to be able to make any additional repayments without the risk of paying a penalty?
- Do you want any money that sits in your regular everyday bank account to be offset against the loan? (This typically will reduce the interest you pay on your home loan)
- Do you want repayments automatically debited out of your nominated bank account or will you get them paid directly out of your salary?
- Do you need the ability to redraw the money you have already paid off the loan?
- Do you wish to use the funds that you have built up on loan for other reasons or is your aim just to pay off the loan as soon as possible?
- Do you require the flexibility to increase or change the loan in the future?
There is a wide range of loans on offer from many various banks – all will offer different interest rates, the products will have different features and fees - so it pays to shop around to find the right home or investment loan that will fit your needs and circumstances.
How Much Can I Borrow?
The difference in the amount you will be able to borrow will differ from one lender to another and this can easily be the difference of thousands of dollars.
One of the best ways to find out how you can maximise your borrowing power with the best possible rates is by speaking with a specialist from Your Broker loan specialists or using their loan calculators.