Unless you’re a multi-millionaire that can buy any variety of properties outright, the possibilities are that you’ll be planning on following the very same course as countless home loan candidates every year. There’s no harm in getting a home loan, in fact over 75% of all brand-new home purchases in Australia are carried out by first time purchasers.
But that’s not to state that everyone will be in the very same monetary position. Some may be applying as a couple with a big annual earnings, while others may be applying alone on a low to moderate income. It won’t matter exactly what you make each year– simply as long as your bank can see that you will be able to stay up to date with your payments.
In any event, we have no doubt that you will be keen to save as much loan as possible when it comes to securing a home mortgage. If you seek financing ideas for your new house, then look no more– we are here to assist. Put the kettle on, sit back and take a look at the priceless info and advice that our experts have prepared for you listed below!
What can they do?
If you want to find the cheapest interest rates, then a broker can help with this. Likewise – if you are keen to minimise your expenses by signing up to a lengthier repayment plan, then a home loans broker can help with negotiating these fairer terms as well. In fact if you simply want to minimise your costs, enjoy the cheapest deals and take advantage of the most flexible repayment agreements, then a good broker could well be the way to go.
Now you might be wondering what it is that makes these financial experts so good at what they do. The first thing that you have to know is that the majority of brokers can be free to hire. Yes, you heard us right – free, as in you won’t have to spend a dollar on their services. Plenty of them work alongside banks in much the same way as an affiliate would; and this means that they can find the most flexible rates, as well as sourcing the cheapest deals on loans in general.
As far as the information that you need to give to a bank is concerned, most will ask for data relating to what you make each year, your expenses and your personal spending habits – simply to work out if you could afford to meet your repayments.
And this brings us on to our last point – understanding how much you can afford to borrow. It won’t make much sense to borrow a huge amount if it means that you and your family will go without food. Instead, work out what you can borrow by considering your yearly income and then multiplying it by 3.5. Most banks will offer 3.5, but some will offer 2.5 times instead – and others might overlook these limitations entirely.