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Things To Consider Before Getting A Home Loan

Tags: loan


Getting a home Loan is already an overwhelming endeavor for most people. But considering the current economic situation, this has become a more intimidating process for many.

With the current economic condition, getting a home loan has become more challenging and as such, requires more research and effort from home buyers to avoid unnecessary stress.

Since home loans long term commitment, it requires a thorough effort from planning stage to moving in stage. Each phase of the process is emotionally taxing.

What are home loans?

Home loans are types of loans that are specifically designed for individuals who are looking at getting their own house or property. In Australia, it is by far the most popular way towards home ownership.

Since getting home loans is generally a long-term commitment that is primarily taken out by individuals primarily towards owning a house, choosing which home loan type that fits your need is important.

Home loan repayments can take up to 30 years, in most cases, so it requires a lot of considerations before you should jump in.

Technical aspects

In order to avoid paying the lenders' mortgage insurance (LMI), try to set aside at least 20% deposit for the loan. The higher the deposit is, the lower your loan will be. Although you will not benefit from the LMI, which is a one-time fee, it will, however, protect the lender should you fail to pay for the loan. 

Depending on your needs, there are specific types of loans just for that.

Whether you’re a first-time home buyer or a seasoned investor or a senior looking at cash to finance your daily expenses, there’s a specific loan type for you.

Knowing the perfect loan type based on your personal circumstance is a key to a seamless and worry-free experience.

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Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a Brisbane-based mortgage broking company that was established 18 years ago. He was shortlisted as a finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. 



This post first appeared on Intellichoice Financial Planning, please read the originial post: here

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Things To Consider Before Getting A Home Loan

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