Matching a suitable mortgage to your needs may save you thousands interest payments over the life of your loan.
|With so many loan products available you can be sure there’s at least one that matches your situation. In your hunt to track down a suitable mortgage, here are a few points to keep in mind.
How much should I borrow?
What type of buyer are you?
Do your homework
- Fixed rate – can help soften impact of any future rate rise
- Split rate – offers the security of fixed rate with the flexibility of a variable rate
- Line of credit – good for financing renovations or additional property investments
- Lo-doc – for the self employed, usually require less documentation, such as establishing proof of income
- No deposit – can’t save for a 20% deposit? This loan will let you finance 100% of the purchasing price, although usually with a parental guarantee
- Interest-only – popular for investors who don’t want to pay the principle component of a mortgage. Usually lower repayments amounts, leaving room to pursue other investments
- Construction – for additions or building your own home
There are a range of tools now available, such as the internet, to help research, compare and contract loans. For many borrowers, however, lending advice from a broker is the easiest and usually most effective option for avoiding confusion and finding an appropriate loan for your needs.