Home Loans

To decide to take out a home loan is a life time commitment if you are the average wage earner. The average home loans are paid over 30 years which is the same as a life time sentence in jail. So make sure you know what you are doing before taking the plunge. Here are some steps to help you with your decision making.

1. Make sure you know what you want before you start looking at property. There are important decisions to be made such as, do you want a house, apartment or town hose, 2 or 3 rooms, on or off street parking, yard size, which neighbourhood, and will you buy at auction or through a private seller and most importantly location.

2. What is your budget? Most lenders will borrow you up to 90% which means you need 10% in savings which is used as your deposit. Dome senders want to see you have saving of up to 20%, it all depends on the vale of the house you are purchasing. Also keep in mind the other costs associated with loans such as, stamp duty, mortgage insurance and legal fees. Plus there are the costs that go with moving house. 3. Choosing a lender can be really difficult as there are so many out there. I suggest staying away from the big banks as you’ll find a competitive interest rate. Find the cheapest and work your way up. 4. If you find a property you love, make a offer straight away whether it’s a private sale or going to auction.