What you should look for in a home loan?

The Advertiser - Real Estate - - Apartments - ASK THE EX­PERT

THERE are lit­er­ally hun­dreds of dif­fer­ent home loan op­tions on the mar­ket. You re­ally need to do your re­search and col­lect all the in­for­ma­tion avail­able for each prod­uct you’re look­ing at to be able to make an ed­u­cated de­ci­sion on the best one for you.

Don’t just look at the in­ter­est rate – check out all the fea­tures of the home loan.

De­cide which ones are im­por­tant to you and which are not.

Are you al­lowed to make ex­tra re­pay­ments on the home loan? What’s the es­tab­lish­ment fee? Is there a re-draw op­tion? Are there hefty exit penal­ties? Are there con­sid­er­able monthly fees? Can you take your mort­gage with you when you move house?

As a gen­eral rule, the lower the in­ter­est rate the fewer the fea­tures and the less flex­i­bil­ity avail­able. You com­monly find this with a ba­sic vari­able loan.

De­ter­mine whether you want a fixed, vari­able or split loan, and what is go­ing to work best for you long-term and not just in the near fu­ture. A home loan is gen­er­ally taken out for 30 years, so con­sider your fu­ture plans as well as your cur­rent po­si­tion.

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