The home loan mortgage industry is just bursting with options. With so many mortgage alternatives in the market these days how do you pick the right one for you? It’s a minefield if you have never done this before. Even if you have attempted this before there can be hidden fees buried into home loans to trap the unwary buyer.
Home Loan Myths
There are many myths in the mortgage market. Let’s touch on some of the major ones. It’s not true that you don’t need a deposit. Yes, a bank will lend you up to 100% of the purchase price but you still need to have the available cash to pay the stamp duty, legal fees and Lender’s Mortgage Insurance (LMI). LMI is insurance to protect the lender and you will be required to pay a hefty premium if you do not have at least a 20% deposit. It is not a safety net for you, the purchaser. You will still be responsible for the loan after the lender has been paid out on any monies you may default on.
The lowest rate is the best. Now there is a real trap. The loan may look good on the surface but you need to check the fine print to ensure there are no hidden costs or clauses built into it. You don’t want to find that you can’t make extra payments or pay a lump sum without being penalised. Likewise, it could be that the rate is only good for the first 6 or 12 months and then it goes up to the standard variable or higher after this ‘honeymoon’ period.
Many people believe they can roll their personal debt into their mortgage. Usually, this would not apply to the first home buyer. It will also not apply if you have already borrowed 100% of the purchase price, then finally the bottom line is if you don’t have the income to cover the debt, the answer will be a negative response.
How Do You Choose the Right Mortgage for You?
The Prudential Real Estate team in Macquarie Fields is your one stop shop when it comes to all things real estate. This means that once you walk through their doors they can guide you through the sea of properties and mortgages available. The directors of the Prudential Real Estate group realised there was a need in the market for people to be able to do everything in one spot. This is why they are able to sell you a home, as well as offer property management.
They also have an in-house mortgage broker who can offer you some sound advice on the spot to get you headed in the right direction. They will help you make a clear, concise decision and even do the paperwork and deal with the mortgage lender and then report it all back to you in a way that you can understand.
Prudential Real Estate has 50 professional, friendly staff across four offices. They have all been highly trained to help make your real estate experience a memorable one. Contact them now at www.prudential.com.au and let them take the best possible care of you.
