How and Why You Should Search for the Best Home Loan
There are plenty of great reasons to apply for a home loan, and finding the best one to suit your needs depends on the purpose for borrowing. Whether you are a first time buyer entering the Australian property market, an existing owner moving to a new house, investing in new buildings, renovating your home, or wanting to unlock the equity of your home by refinancing, lenders will have a home loan to match your needs.
Lenders also offer a variety of types of interest rates on your repayments, including fixed and variable rates, and choosing the best home loan depends on your lifestyle, financial circumstances and plans for the future.
The Australian property market is one of the world’s most competitive. In fact, according Demographia International Housing Affordability Survey, Australia ranks as one the top three most unaffordable property markets in the world, with Sydney second only to Hong Kong for unaffordable house prices. Finding the best home loan will give you the most advantages in today’s property market, potentially saving you thousands of dollars during your repayment.
What are the Features and Benefits to look for?
Your home loan is likely to be one of the biggest and longest financial commitment you will make during your life, so finding the best deal is essential. Using Money Choices’ online service, there are several key factors you should take into considerations when comparing the choice of deals from Australian lenders.
Home loans vary in how much you can borrow, how long you have to repay the money and how the interest is calculated on repayments. Variable rate home loans have an interest rate changing according to the rate set by The Reserve Bank of Australia. This can help or hinder your repayments, depending on how the property market and interest rates fluctuate. A fixed rate loan has an agreed, constant rate and a set period of time to make the repayment. This is a secure way of knowing exactly how much and how long you have to pay, but lacks the flexibility of some other loans.
More home loan features to take into account include finding out about any extra fees and budgeting to include these charges. Once you have worked out what type and size of loan that suits you, you can use Money Choices’ free service to compare the deals from all the main Australian lenders, apply online and start saving dollars straight away.
How Do You Know What Size of Home Loan Suitability
The best home loan for you depends on what you want to borrow for, the state of your finances and your plans for the future. There are a number of steps you can take to make sure the deal you choose is best for you and that you are suitably prepared for the commitment you about to make.
To calculate how much you should borrow and how long repayment will take, have a close look at your accounts. Repayments should not exceed one-third of your total pre-tax income, so use this as a guide when working out the size and length of your loan.
The lender will require you to make a deposit, usually a minimum of 5% of the total size of the loan. It is in your interest to be ready with a bigger loan, ideally 10% to 20%, as this will make your loan more affordable and quicker to repay. By making sure you are prepared, then using Money Choices to find the best deal, possibly saving you a small fortune in the long run.
Enquire Online
Money Choices’ free service takes the headache out of comparing the best home loan deals from leading Australian lenders. Having compared the best deals, you can apply today free of charge, no risks and no commitment, speak to a trusted mobile banker and decide if what’s on offer suits your financial requirements. The sooner you set up your loan the sooner you can start saving, enjoy the benefits and make plans for the future.
