Whether it be borrowing for your first home loan or investment loan, here are some tips on borrowing:
- Know how much you can borrow
Calculate you borrowing capacity by including a buffer. Lenders use margins above current rates, so should you. Use between 1% - 1.5% when using a home loan calculator. https://www.mortgagechoice.com.au/home-loans/calculators/how-much-can-i-borrow.aspx
- Do some research on the type of loan
What kind of features do you want on your home loan? For example, do you need flexibility of a redraw? Do you prefer an offset? Will a credit card or debit card suit your needs better? Depending on the features you choose, lender rates and or fees will vary, which means you could end up paying more than you should.
- There are better option than the major banks.
Do you really care who lends you the money or how long a lender has been or will be around? There are better lender alternatives out there with better rates, which could save you thousands of dollars in the long run.
If you have any questions or needs any help on the above, call me today for a no cost consultation. Jim on 0437 330 858