Five Important Things to Consider When Choosing your First Home Loan

January 27, 2017
Graham Bowling

The beginning of 2017 has seen demand for property remaining relatively strong and despite interest rate increases, home loans are remaining historically low making them very affordable to service.

If you are lucky, you have found your dream home. Or you may still be in the process of searching for it. At whatever stage you are, a home loan is a long term commitment and one that you need to get right!

Picking the right home loan will ensure that you do not end up paying too much, or being stuck with the wrong lender. At Mortgage Choice, we have pulled together what we believe to be the five most important things to consider when you are choosing your home loan:

  1. Do some research – yes, we can find the home loans for you, and explain any questions you have, but a basic understanding of what you need and how mortgages work can make it much easier to understand how the process works. Don’t worry though, finding individual loans can be left to the experts and they can talk you through the fine print and answer any questions that you may have.             
  2. Mortgage Calculators – there are many free tools available that will help you to calculate your mortgage, including how much you can borrow, what your monthly repayments will be, stamp duty costs, amount based on extra repayments, as well as comparing different loans and types. Check out ours here.
  3. Ask for recommendations.  Trusted friends, family and colleagues can provide great recommendations. And remember, local mortgage brokers know the area and the market well and have often developed relationships with several generations of buyers in an area.
  4. Read the small print and understand the terms and conditions of your loan. Many first time buyers are seduced by low rates, but caught with high exit fees or inflexible repayment options.
  5. Entitlements and fees – you may be entitled to grants or deductions as first home buyer – but don’t forget the stamp duty and conveyancing fees. You will need to include all these in your calculations when choosing the right home loan for you! A good mortgage broker will be able to help you with all this, and make sure you choose the right home loan for your circumstances.

Get expert advice from mortgage professionals and find the right home loan for you with Peter O'Brien and the team at Mortgage Choice, Victoria Street. Talk to us today for a no obligation chat to help you reach your property goals. 

Posted in: Tips

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