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Is your home loan right for you ?
Not so long ago your mortgage was almost as long term a commitment as your marriage. People
Hot Topics
- Can I get an Instant Quote for Life Insurance?
- No - not through this website, because we believe that to get the right life insurance, you need to talk to a professional.
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- Yes you will. But first let us give you the usual Life Company’s definition of a smoker:
- Complaints about a Life Insurance Adviser
- If the Life Insurance Adviser is regulated by the Financial Services Authority then he will have provided you with his Terms and Conditions at the very first opportunity.
- Complaints about misleading advertising on the Internet
- If you believe that a web site is misleading then you should contact the Advertising Standards Authority.
Your Loan Size
In most cases your ability to borrow and the size of loan you can qualify for will be determined by
- your declared income;
- asset and liability position;
- available deposit.
The loan affordability calculator used by each lender is different. Therefore ( life insurance )even if you have been knocked back by one lender you may find that another lender may approve on exactly the same financials and loan size.
One thing to keep in mind is whether you believe that you will be able to afford the loan repayments. In the current interest rate market it is important to factor in a couple of probable interest rate increases when working out your loan affordability.
It is no good finding a lender who is prepared to lend you $500,000 when you yourself do not believe that you can comfortably repay such an amount.
Key Loan Reduction Techniques
There is no magic product that makes your mortgage disappear. In fact, there are ( mortgage quotes ) only a couple of ways to save money on your home loan:
· Paying lower interest rates.
· Borrowing less.
· Borrowing for a shorter time.
In other words, if you want to clear your loan quickly, you need to make larger and more frequent repayments, at the lowest possible interest rate.
If finding the required repayments on your desired mortgage will present a problem, then the mortgage selection rules change. In order to afford that $500,000 mortgage, you may need to start with a Honeymoon product and then move to an interest only loan for a period of time. Perhaps repaying more and faster is not the path for you. Again the rules change depending on your individual circumstances.
Loan Features
Most lenders offer a range of loan options. Some allow you to have access to your money like mortgage offset accounts and redraw facilities. Others allow you to transfer your mortgage to another security - portable loans.
It is up to you to decide which features are necessary and which are 'nice-to-have'. As with most things in life, extra features tend to come at a greater cost. Therefore it is wise to only take and pay for what you need.