Brian Brady
Last week I gave some tips to help those who are looking at buying a home and are confused about the buying process.
When buying a property though sometimes the biggest issue is finding finance.
Below is some excellent advice written by qualified and experienced Financial Planner, Terry Simmonds (terry.simmonds@ampfp.com.au), about getting finances in order for your property.
“Where to find the best housing finance package to suit your own personal circumstances can depend on many things and what you can afford.
Obviously, the Banks, Building Societies and Credit Unions are the main lenders to research. If you have a long standing association with a particular lender, then the loan process maybe more comfortable for you.
There are many Mortgage Brokers who can source out the best loan package for your individual circumstance. They generally do not charge a fee for their service as they get paid by the financial institution that provides the loan.
Avoid Mortgage Insurance if you can by having at least 20% deposit. Mortgage Insurance protects the lender, not you, in the event of default.
Lastly, when applying for a loan, have the lender do repayment calculations on an interest rate of at least 1% above the quoted rate. This way you will be able to gauge if you can afford repayments should the rates rise. Consider a portion of your loan as fixed interest, but look carefully into any penalties that could apply if you wish to repay a fixed interest loan early.”