Insights for buying your home
Tip #1. Calculate the associated home loan buyer costs
Don’t forget that when buying a home there are a lot of extra costs that you need to calculate such as stamp duty, mortgage insurance, loan applications fee and solicitor conveyancing fees. In a home loan of $ 300,000, there can be upwards from $17,000 in associated fees. Be sure to check with eChoice consultants to help you understand all the costs associated with buying a home.
Tip #2. Be aware of honeymoon introduction rates
Honeymoon loans seem to be a good deal offering low rates in the initial stages of the lending period yet they thereafter increase to the lenders standard rate. Infochoice's Australian Mortgage Report in 2004 discovered that the lower the introduction rate, the higher cost for the home loan over time.
Tip #3. Be cautious of fixed interest rates
Fixed interest rates are perfect when the rates are rising but remember that mortgage interest rates do go up and down. Fixed home loan interest rates usually have higher fees if you try to pay off the loan quicker. You might be better off with a standard variable interest rate loan which is more common in the Australian mortgage market.
Tip #4. Lo doc home loans and no doc home loans
You might not be eligible for a basic loan because of poor credit history, self employed or maybe newly arrived in Australia. Don’t despair! There is still hope, as home loan brokers offer lo doc home loans and no doc home loans. These home loans have a higher interest rate than basic home loans but usually get lower after a period of repayments. Be sure to ask your home loan broker what that period is!
Tip #5. Beware of comparison rates
Did you know that home loan lenders are required by law to include comparison rates when advertising home loans. This is aimed to guide home borrowers’ and provide insight into how much the loan will actually cost you! Comparison rates often don’t illustrate features and restrictions, so always remember to thoroughly review home loan offers and make sure that the home loan suits you and your income circumstances.
Tip #6. Home Loan lending agencies with online experience
To be sure you get a good deal on your next home loan, you should contact a mortgage lending agency that has many years experience of home loans. So contact eChoice today, for the best experience in home loans.
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