When you want to buy your first home, it is wise to get mortgage advice from an expert mortgage broker Melbourne. To give good mortgage advice, mortgage brokers need specific training and expertise so they can properly understand their customers’ mortgage needs, their financial situation and find mortgage options that are most suitable for them.
If you are a first home buyer, there is a wide variety of tips and advice on offer from experts in the mortgage and home loan industry. Here is a list of useful mortgage tips to help homebuyers make informed decisions.
- Compare your options
Before you start looking for a home, it is important to consider the type of loan that works best for you with regards to interest rates and fees. Although mortgages are generally considered expensive, most home loans include valuable extras like redraw facilities or offset accounts that can save borrowers money in the long run. Having said that, interest rates can vary widely between institutions. Make sure you compare your options closely before applying for a loan so you know what to expect in terms of costs and features.
- Include all your credit cards in the loan application
Don’t be afraid to ask your current bank about including any credit card debt you may have in your mortgage application. Odd as it may seem, banks tend to view credit card debt more favorably than personal loans or overdrafts; and they can be included in home loans whether they are with the same bank or not. This is because these kinds of loans generally do not attract interest and can be paid off in monthly installments along with your mortgage. The important thing to remember is that you must pay off this debt when you apply for a home loan; banks will only accept credit card or other installment debts from borrowers who have been making these minimum repayments on time over the past twelve months.
- Don’t forget about penalties
Some loans include early repayment penalties, so it is important to factor this in when planning your repayments. If you are planning on making additional repayments on your loan, remember that you must do so before the due date or there may be a penalty for doing so afterwards. It is important to read through the terms and conditions of your home loan carefully to know what you are signing up for.