While one in three Australians are wasting over $115,000 on there home loans, it pays to do your homework! But it doesn’t have to be all confusing numbers and financial mumbo jumbo – here are our top tips on choosing a home loan that suits you best.
Jeremy Cabral, Publisher of HomeLoanFinder.com.au says, “It’s not as difficult as people think, to research home loans on the market and compare them against each other. Often family members are armed with personal advice according to their own situation, so relying on this information alone, when selecting a home loan, is not advisable. Our UK counterparts have embraced comparison when it comes to personal finance products and are reaping the rewards as a result.”
Jeremy says the savings to be made by comparing deals on the market are hugely significant and will save you thousands. Music to your ears, yes?
Check out some of the fab deals on the market to help you compare and contrast.
Top Tips on Choosing a Home Loan
Get The Facts
From now credit providers will need to give you a key facts sheet on home loans, if you ask for one. Key facts sheets will give you the information you need in a set format so it is easier for you to shop around and compare loans.
Standard Principal and Interest Home Loan
Most people take out a standard principal and interest home loan, where you make regular payments against the amount borrowed as well as paying interest. This type of loan is the surest way of paying off your home loan.
Interest Only Option Loans
This is where you pay off only the interest on the loan for a fixed time. This reduces the amount of your repayments for a set period, but not the balance of the principal you borrowed.
Low-Doc Loans
When you apply for a low-documentation (low-doc) loan, you won’t need to give your credit provider or broker as many documents to prove your income, assets and liabilities as you would with other loans. These loans are intended for small businesses that do not have audited accounts.
Line of Credit Loans
A line of credit loan lets you use a single account for your home loan and everyday spending. The limit on the line of credit loan is fixed and does not reduce as you repay the loan. This means you can always draw up to this limit.