When making the decision to buy a home for investment or to live or even considering a possible refinance of an existing mortgage, there are a number of factors which you need to consider:
- How much can you borrow?
- Do you have a deposit? Can you show a genuine savings pattern of at least 6 months?
- If you are borrowing more than 80% of the purchase price do you know that you will need to pay Lenders Mortgage Insurance?
- Do you have the money to pay for the Stamp Duty and Legal fees?
- What are the repayments? Can you afford it? If interest rates increase is it still affordable?
- Should you go with variable or fixed interest rates?
- What loan features are you looking for – do you want an offset account, ability to redraw, ability to make extra repayments, do you want to be able to do a cash-out?
- Are you eligible for the First Home Owners Grant? If so what do you need to do?
These are all questions that a good broker will take the time to go through with you to ensure you are fully aware of what you are doing and the resulting financial implications. At Vue Financial we strongly believe that nobody should enter into a borrowing arrangement without being fully aware of the consequences.