When buying a home, the most important decision you need to make is choosing the right home loan. With rising inflation, and Reserve Bank raising its interest rate, it is necessary to find a good home loan consultant in Baulkham Hills as soon as possible. Here they are if you are trying to decide what points to consider or look out for when taking a home loan.
The Amount of Deposit You Can Make:
The first point to consider is how much deposit you must make to get the loan when looking at home loans. Generally, the down payment you have to make is about 20% of the property’s value.
However, if you are a first-time buyer, you may make a down payment of less than 5%. It is not that others can’t do it, just that they have to take up Lenders Mortgage Insurance (LMI) which can increase the cost of buying a property. First-time buyers don’t have to take this insurance.
Types of Home Loans In The Market:
There are three kinds of home loans in the market that you have to choose from. They are basic, standard, and packaged. Here is more information about them that will help you make a better decision.
Basic Home Loan:
The name is self-explanatory; you will get a loan with low-interest rates but few features. They are no-frills, so if you later want to make extra repayment, you may have to pay fees, or there will be restrictions.
Standard Home Loan:
It is a step better than basic home loans and offers more flexibility than it. For example, if you have a standard home loan and have paid extra funds for your mortgage payment, you can redraw it later. You can also choose the mode of repayment, like fixed or variable, or have a mixture of the two.
A Complete Package Of Home Loan
This kind of home loan has most of the features of the standard home loan, along with a discount of up to 1.2% on the loan amount. The discount makes it cheaper than basic loans but has its own package fee. Other added features may include a free credit card or free account.
Other Types of Home Loans:
Home loans can also be structured differently based on how you are paying off the loan. When you go to any easy house loan facility in Riverstone, you will be given the options to repay the loan in the following manners:
- Principal & Interest loans
- Interest-only loans
- Variable rate home loan
- Fixed home loan
So, these are some points to keep in mind when looking for a home loan provider.