You now ready to own a house; having lived in rental houses for decades, the thought of having to go back to your own house after work excites you. You don’t have enough money to pay for your home in full, but you have spoken to a few friends who have been through the same before and all have ordered you to shop for the best home loans in Australia. To get you started, here are tips to help you nail the best mortgage in town.
Have an idea abut about the lending landscape
Getting a loan to finance your first home can be really complex. It is very difficult to single out who the best lenders are in a crowded field. Some of the best lending institutions you could go for home loans in Australian include credit unions, banks, correspondent lenders and mutual saving banks. You can check out each lender and if possible make a physical visit to their offices and find out what they have in store for their customers.
Compare home loans from different lenders
With now tons and tons of lenders now hitting the market and each claiming to offer the best home loans, get as many quotes as possible from different companies, and don’t just look at the interest rates. The best way to compare home loans is to ask a key fact sheet from each and every lender you have on your list. Look at their fees, rate, origination fee and any other fee charged by the lender. By doing so, you will actually get a very personalized comparison rate to help you check the total cost of a loan against other loans.
Mode of payment and repayment period
How you will be required to pay for the loan and for how long is important and must be considered at all times. You might want to go for plan that is flexible and on that will not strain your financially.
Read the fine print
Once you have identified the best lender and you now ready to take out that loan, before you put you sign on any piece of papers, read the fine print. Many at times, interest and principal payments are not the only cost of owning a home. Ask you lender about estimated closing cots, transaction fee and other cost that you should know. If you find something is not clear, ask for explanation from them.
At the end, as you can see there is a lot that go into finding the best home loans in Australia. You do not only have to compare home loans from different lender; they are other important considerations.
Author: Jake Randal is a Financial Planner that helps individuals with their investments which includings finding the right home loan