It is an exciting time, buying a new home. There is so much to do, but first things first, how do you find the best home loan?
Do not become overwhelmed by all the numbers and fine print, simply focus on the following five factors:
1. Do I prefer a big bank or a small lender? Express your preference for a small or large bank lender with your mortgage broker in the beginning. This will help you narrow your search and can help accelerate the process of research and compare the Right Mortgage Strategy.
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2. What style loan is right for me? There are a multitude of styles and lending a reliable mortgage broker will be able to guide you through them and explain the advantages and disadvantages of each.
Generally, home loans fall into one of the following categories:
i) The standard variable loan: when you take out a standard variable rate home loan for your interest will be charged at a variable rate determined by your bank or loan company. This is an attractive option when interest rates are high and expected to fall.
ii) A fixed-rate loan: this mortgage model allows you to lock in an interest rate agreed for a specified period or the life of the loan. This is a good option when interest rates are low and should be increased.