In Australia, the spring property season is about to arrive. And this year is quite exceptional. As the effects of Corona are fading away, the federal government is introducing numerous grants and incentives to get the economy back on track. Here, we are going to discuss the importance of your home loan.
The price of properties in most prominent cities of Australia has fallen which is another great reason to buy property, especially for the first home buyers. As per the latest reports, the home loans for first home buyers has increased by 14%.
People look for various factors when they buy homes. A good home loan is always the most important factor to consider before buying a home.
- You could save a lot of money if you choose a better home loan:
- Several people don’t believe it but you can save a lot of money if you have an appropriate home loan. The amount of interest that you pay over the lifetime depends a lot on the interest rate and the size of the mortgage. If you have a loan worth $400,000 and the interest is 3.33%, you will have to pay $189,863 and for the same loan, if your interest rate is 2.50%, the total payable interest would be $138,340. This is the amount of difference
- Loan affects your required deposit:
- Normally, you need about a 20% deposit before getting any loan for your home. And if someone has a deposit of less than 20%, most of the banks demand LMI (Lenders Mortgage Insurance) from the borrowers. If you start searching for good loans, you can get various loans with just 10% or even 5% deposits.
- One thing you have to make sure that if you opt for a bigger home loan, you will get to know repayment will be even bigger. These low deposit home loans are just for making the first home buyers able to get in the market quickly.
- Check for the useful features:
- There are different features associated with the loans. Some of those features are useful and you have to consider it. Some extra costs are also associated with a loan and you need to be aware of them before you get that loan. Always try to get the mortgage having a great rate and other useful features.
Anyone needs to be very careful about choosing a home loan. The buyers need to be aware of all the features related to the loan you have to opt.