How often are you being told that it’s good to invest in bricks and mortar? Getting on the property ladder can be extremely empowering, but make sure you do your sums right to get the perfect home loan suited to you.
If you already own a house, don’t become complacent and be pro-active to ensure you get the best home loan available when it’s time to renew. There are so many deals about and different types of loans, that it’s very easy to get confused and like anything in life it pays to shop around.
The team at Able Removals has come up with some top advice to help you in the hunt for a home loan.
In order to realise your dream, sometimes you just have to compromise. If you have a low deposit to secure on a property, but are keen to become a home owner, you may have to accept an interest rate which is higher than you’d like. Over time as you prove you’re a good customer, re-mortgage to bring your loan down. All being well your house will have risen in value over a period of a couple of years so you will have built up equity.
We know this may not always be possible, but these days lots of parents muck in to help their children buy their first home. As many as 60% of first time house buyers are gifted some money to put down on a property. Getting your mum and dad to help you buy a house is great and if they can’t afford it, ask them to be a guarantor. This means if you fall into trouble meeting your repayments they will help you out.
It’s obvious but the more impressive your employment record, the easier it is to secure a better first- time loan. If you’ve been working for your current employer as a staff member for six months, it puts you in a strong position as you have history behind you. For contract and casual employees and the self-employed it’s a little harder.
If you currently have a home loan, negotiating a better interest rate with your current loan provider is important as even the smallest decrease will make a difference to your repayments, even half a per cent. Banks and financial institutions have decades of experience and can be sneaky and rates can go up without you noticing.
If you have been a loyal customer and regularly paid back your instalments, ask them that you want a better rate. Don’t accept a rate hike. Remember banks rely on people being lazy but by refinancing with a different home loan, you can save your dollars.
If your bank isn’t flexible and won’t help you to refinance to a better deal, shop around. Look at discounted rates and favourable terms from other financial organisations. Ask your friends what loans they’re on. Have the courage to switch but make sure you’re aware of any upfront fees if you do move your home loan.
Here at Able Removals, we know that buying a property is a real milestone in someone’s life. We can help take the stress out of your removal by offering a comprehensive removal service which meets your requirements, so talk to us today to see how we can help.
We can deliver a variety of packing materials to your doorstep.