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Getting A Home Loan

By Author: Singh Finance
Total Articles: 14

Buying your dream home or investment property is likely to be the biggest purchase of your life, and a home loan is one of the biggest financial commitments you will ever make. Choosing the right home loan can be confusing to understand and it can also be difficult to know which lender/credit provider will lend to you and your circumstances.

If you are a home owner, first-time home buyer, investor or renovator and when you read this article you will understand how taking help from a professionally qualified finance broker or a mortgage broker can benefit you when you are trying to walk through the home loan minefield to get a home loan.

“Tips” to help you get a Better Home Loan

Here is a collection of useful“tips” that aim to address the concerns and problems that many Australians experience when trying to get a home loan:

Tip #1 - Shop around for the Best Home Loan: Remember, you are under no obligation to go with your regular bank. Take time to consider your options and find the right home loan that best suits your needs and circumstances;

Tip #2 - Make a Budget: Work out if you can afford a home loan. You can use this handy Budget Planner Calculator to enable you to plan where you want your money to go, and more importantly you will be able to determine straight away:
• If you have any money left over (i.e. do you have a Surplus?) or

• If you are spending more than you are earning (i.e. do you have a Deficit?)

Tip #3 - Work out How Much You Can Afford to Borrow: Only borrow what you actually need and can afford, don’t over-commit yourself. You can this handy Borrowing Power calculator to calculate for yourself:

• How much you can borrow? and

• How much your repayments might be?

Remember, that a 95 per cent loan may sound great, until you come to pay it off.

Tip #4 - Compare Home Loans: The best way to compare home loans is to ask for a “Key Facts Sheet”from different lenders/credit providers. They key facts sheet will give you the information you need, in a set format so you can directly compare interest rates, features and fees. It will also give you a personalised comparison rate to help you check the total cost of a home loan against other home loans. Lenders/credit providers must give you a key facts sheet for a home loan, if you ask for one;

Tip #5 - Don’t Buy Loan Features You Won’t Use: Typically,the interest rate on offer on a “no-frills” home loan will be lower than on one that offers more features. So, make sure you are not paying extra for features you don’t need. When choosing the right home loan you should look at the home loan package that has a particular combination of interest rates, repayment options, fees & charges and services that best suits your needs.

Tip #6 - Choose the Lender/Credit Provide you want to deal with: When you want help to get a home loan you can choose any of the following:

• Through a finance/mortgage broker. Brokers can save you lots of time shopping around for the right home loan. As they deal with a number of lenders/credit providers on a regular daily basis.This enables the brokers to know the interest rates and lending criteria for different lenders/credit providers, and they can also negotiate on your behalf;

• Directly from a bank. Banks offer a wide range of home loan options and the competition between the banks can sometimes lead to great deals, such as lending at a low fixed interest rate. However, banks tend to be more cautious and are more likely to turn you down if you don’t have a good credit history;

• From “non-bank” lenders, such as building societies, credit unions, finance & insurance companies and trustee companies; or

• From “Non-conforming lenders”. These lenders usually only accept home loan applications through finance/mortgage brokers. This is an option if you are unable to get a bank loan, due to a bad credit history or lack of proof of income.

Tip #7 - Do a Financial Health Check on your Existing Home Loan: When you do a Financial Health Check on your existing home loan against other home loans out there in the market place, you may find that “refinancing” works well, particularly ifyou can add (consolidate) other debts into your home loan, such as your credit card debts or a car loan. This will enable you to pay off your credit card debts or car loan at a lower home loan interest rate;

Tip #8 - Read the Contract before you sign: You should read the terms and conditions in the Mortgage contract before you sign anything and if there is something in the contract you are not sure about:

• Seek independent legal advice; and
• Ask questions.

Tip #9 - First-time Home Buyers: If you are a first-time home buyer you may be eligible for a one-off payment through the Australian Government’s First Home Owner Grant (FHOG) scheme. For more information (see www.firsthome.gov.au).
Seek Expert and Professional Advice

Seek help from a professionally qualified finance broker or a mortgage broker as they have access to multiple lenders/credit providers and are experts in arranging home loans.
http://www.singhfinance.com.au is a reputed Australian finance brokerage firm that employs a team of professionally qualified finance brokersandwho are also home loan experts.For an obligation free assessment and to arrange a pre-approved home loan, call on0424 190 908today or visit our website and simply click on the “ENQUIRE ONLINE” form, and one of their professionally qualified finance brokers will contact you to make an appointment at a time and place convenient to you.

Read more about: home loans Australia and low deposit home loans Australia

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