When comparing the range of home loans available, be aware the home loan you choose could have more of an impact than you realise.
You may not have thought about it before, but the home you are buying is more than where you will live. Your home is every bit as much an investment property as any rental property. When you purchase a home the key points of affordability, location to schools, work, transport, even sporting interests, play a key role, but given our ‘on the move’ population and the likelihood of selling within X number of years, any potential home should also be viewed with an eye to its development and resale potential Best Home Loan Deal.
Part of maximising a property’s potential ROI (return on investment) is the type of loan and the home loan interest rate.
If a first home buyer, it’s highly likely you are looking at borrowing the greater part of the price, but you will probably be in line for the one-off, Federal Government’s First Home Owner Grant. Most mortgage advisors have in-depth knowledge of the grant and are happy to work through the process with their clients.
A variety of loan options exist such as borrowing 100% of the property value and can include a range of flexible options. Home loan interest rates can vary considerably and this aspect also needs to be considered carefully by the borrower.
Additional to the home loan, Australia regulated insurance will likely be advised, particularly for first home buyers, and will need to be factored in to the final costs.
Web sites invariably include a home loan calculator which uses information such as income, number of children, if it is to be an investment property and current commitments.
The best advice, however, is to take time to sit down with your bank or mortgage broker to carefully work through your unique circumstances as the range of home loans is considerable and can turn from a maze to a minefield if you get it wrong.
Just consider the variety – Fixed Rate, Low Rate Basic and Variable home loans, Split and Consolidation loans, Bridging loans, Low Document loans for the self-employed – and these are just for starters. Advisors are also qualified in advising on the type of interest structure to suit your circumstances, though naturally the borrower has the final decision.
When choosing home loans, first gather comprehensive information to increase the odds you’ll choose a home loan option that will have a positive future impact.