Questions to Consider in the Home Loan Search
The current economic squeeze has already seen many existing borrowers reassess their current loan arrangements, whilst first home buyers continue their search for that perfect loan.
But regardless of where you are in your own search, what is important is to choose the loan to fit you, rather than you trying to fit the loan. And there are five key areas to consider:
What are your financial plans?
If you’re looking for a loan to be a central part of your financial plans you’ll need to carefully research a large number of fully featured loans and determine which combination is right for you, then weigh up and compare all the costs.
Where are you in your life cycle?
Established home owners who already have substantial equity in their home should aim for a loan structure with a low rate and basic features. First home owners may want the security of fixing some of their loan while allowing for some flexibility as their family circumstances change. Be realistic about your needs and plans.
What is your employment situation?
Concerns surrounding job security means some borrowers prefer to choose a loan that allows them to make additional repayments when they can, whilst still being able to pay interest only when needed. These loan types also work well for the self-employed.
What is your lifestyle?
If you want some certainty around what lifestyle you can afford, you could consider a loan which has at least a part fixed component. This can offer you some degree of financial certainty around what you can afford to spend, in order to support your lifestyle.
How important is service to you?
Consider how important it is for you to have a lender that you can call on directly when you need, to ensure you continue to have the most appropriate loan to ‘fit’ your situation. The support that this service proposition provides over the long term is immeasurable.
To find out more about your home loan options, call resi on 136 126.
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