23 May 2011
For most property buyers, the biggest issue with buying a house isn’t finding somewhere perfect, it’s figuring out how to afford that dream home in the first place.
So in many cases, the first step in obtaining that dream piece of Casula real estate is looking at your mortgage options.
If you haven’t taken out a mortgage before then it’s probably a good idea to have a chat with a mortgage broker or a financial lender about your financial goals ,and the home loan products that are available to you. Even if you have no intentions of using the services of a particular broker or lender, it doesn’t hurt to have a chat with them as they may still be able to offer you useful advice or at least point you in the right direction.
In general, it’s advisable not to take out a home loan where you need to spend more than 30 percent of your household income on repayments, as you don’t want to stretch your finds too thinly.
When deciding on a home loan there are lots of other things you should think about too – here are a few of them:
Fees – Some home loans may appear to be cheaper at first glance, but be aware of hidden fees and charges.
Financial Changes – Before deciding on a home loan, think about whether your financial situation may change in the near future due to having children or switching jobs for example.
Fixed or Variable? – It can be tricky deciding whether or not to take the punt on a fixed loan. The benefit of having a fixed rate is that you have more security; however fixed home loans normally have higher charges and other penalties.
Exit Strategy – Before taking out a loan think about your exit strategy and whether or not you intend on paying the loan off for its full term. For instance, you may intend to sell your home sooner, rather than later.
Mortgage Features – When choosing a mortgage look for extra features such as credit or debit accounts etc.
It’s a good idea to think carefully about the home loan that you choose, as choosing the right one could end up saving you thousands in the long run. So before you plunge head-first into buying Casula real estate, look at your home loan options and figure out how you are going to afford your new home, so you don’t end up disappointed when you go to purchase.