Three things to think about when choosing a home loan
Purchasing property is a big commitment and can be a little scary whether you are a seasoned investor or a first home buyer. So when you're looking for a home loan, you will want to find something that provides flexibility and peace of mind.
There are many types of different home loans available to suit different people. Here are some things to think about when pondering which is best for you:
1. What is the purpose of your home loan?
When looking to find the best home loan for you, think about what you are actually taking the loan out for.
If you are an investor then you may want to look into getting property investment loans with interest only repayments. This means that you have funds to purchase the property, then you can pay off the interest while the home is increasing in value and then sell it at an opportune time.
Investors may also want to find a loan with a fixed rate, so that the interest they are paying does not fluctuate too much.
Buyers looking at owner-occupying a property may want to look at low rate fixed loans with principal and interest repayments. This means that purchasers will be able to pay off the interest and loan at the same time, eventually paying it off altogether.
2. What are your requirements?
You may be asking yourself: "How much can I borrow?". It is important to figure this out in the early stages of looking for a home loan. Use a mortgage calculator to figure out what amount is available for you.
Take a look at your income and set a budget to stick to, this will help you determine what monthly or fortnightly repayments you can afford.
3. What is happening in your future?
This is another thing to consider when you are taking out a loan. If you are planning on having children, then you may want to estimate what living costs will be in the future and how they will affect your loan repayments.
Alternatively, if you will require significant funds in the future for other things then you may want to consider getting a Line of Credit loan, or partial line of credit.
At MyRate, we review and monitor changes to borrower rates across the industry and continue to work hard to ensure our product is competitive for all our borrowers.