For most of us our mortgage will be the biggest loan we will ever take out. Very few can afford to buy a home with cash so a mortgage is an inevitability for those of us who choose to venture into home ownership. Browse Mortgage rates here before you go and speak to a bank or Mortgage Broker to work out the best deal that will work with your lifestyle and investment approach.
Applying For a Mortgage
Some people can afford to buy a house outright. However, for many some form of finance, normally in the form of a mortgage, is needed. It is important to fully understand what type of mortgage you will need before committing.
Mortgages come in various packages, the main three being:
Each home loan will have different terms, including how long the home loan is for, and your oan amount will depend on your deposit. The amount needed for a deposit will depend on the type of property you buy and the relative terms set by the bank.
Before you commit to an offer or to buying a property, you can get a pre-approval from the bank. By deciphering your financial situation they will tell you whether they will guarantee you finance, and the maximum amount they will guarantee. This will help to establish your maximum price point when searching for a property.
An easy way to establish this informally before you start house hunting, is by checking out a mortgage calculator, available here, on any of the major banking websites or Sorted.