October 25, 2010
If leaving the rental scene and taking on the commitment of home ownership seems scarier than a lifetime of Halloweens, perhaps it is time to understand the tricks, treats and myths.
First time property buyers are often spooked by the long term financial obligation of a mortgage, in that it may reign in their way of life.
Australia's largest independently-owned mortgage broker, Mortgage Choice explains that a mortgage does not have to put an end to all of life's luxuries.
Company spokesperson Kristy Sheppard said, "When it comes to the financial commitment of property ownership, too often perpetual renters fear the unknown and lose sight of the end goal."
"Taking out and repaying a home loan need not be scary, as long as time is taken to research loan options, know and set limits, understand short term and long term personal objectives, budget accordingly and thoroughly think through each decision.
"A common fallacy is that there will be no money leftover for splurges, outings or special occasions. However, mortgage stress can usually be avoided by setting a realistic budget from the beginning, factoring in interest rate rises, borrowing within your means and avoiding unnecessary post-purchase debt. All of this will help ensure there is money left in the kitty for treats every so often.
"Of course, owning property is not for everyone. The decision should only be made after careful consideration of all pros and cons. However, it is often more achievable than people may realise.
"Undertaking thorough research while seeking professional knowledge and support can help ensure nothing scary comes your way. This Halloween face your fears and do your homework so you too at least fully understand the pros and cons of property ownership."
Mortgage Choice suggests these tricks and tips:
Do your homework but save time by utilising property and home loan news sites, online forums, social media sites and loan comparison facilities to familiarise yourself with the market, ask questions, compare ideas and gather firsthand accounts of the possibilities, pitfalls and benefits.
Start saving now so you don't feel overwhelmed or in a panic when it comes to building a deposit for your ideal property. Reaching savings milestones can be rewarded with a treat here and there.
Practising your repayments makes perfect home loan sense; that way when the time comes there should be no real financial surprise. A professional mortgage broker can help you figure out what your regular repayments would be so you can budget accordingly.
Be application ready and have all the necessary documents on hand for your loan application. Documentary evidence such as ID, bank statements, recent pay slips or tax returns, plus written details about assets, liabilities and any other income will all be required.
Seek help from someone in the know.Reduce the fright by visiting a professional for a step-by-step guide to the mortgage market, empowering yourself to make the right move.
Call Mortgage Choice customer service on 13 MORTGAGE.
For further information or to arrange an interview, please contact:
(02) 8907 0472 or 0407 416 124