If finding a property is hard enough for you, what more when you shop for a mortgage plan to pay for it? Many things must be put forward to search and choose a home loan that suits your need and financial standing, but how do you know it is the best one? Here's a checklist you may refer to:
Is it necessary to pay for Lender Mortgage Insurance (LMI)?
For any deposit amount that is less than 20%, you might need to pay for LMI. Generally, LMI protects lenders from possible losses if the borrower is unable to repay the loan. However, even if that is the case, you still need to understand the rate and terms under this agreement.
Is there a minimum deposit required?
This varies depending on what your lender's loan to valuation ratio (LVRs). To put it simply, LVR is the percentage of the loan amount you're allowed to borrow from the financial institution. This normally calculated based on the total amount of investment, the amount of loan and the maximum amount of lending risk the lender is willing to take.
What are the usual fees that apply to my loan?
There are a number of fees that may appear and affect your home loan application in Ogden and these may include the following:
- Annual Package Fees
- Application Fees
- Redraw Facility Fees
- Property Valuation Fees
If your lender asks for additional fees on top of these, be sure you fully understand it before agreeing.
What is the best loan type?
This depends on your situation. You need to weigh the pros and cons of your choice to find out which will benefit you the most. Be sure you've thoroughly considered every factor, so you are free to take all the time you need to come up with the right decision.
Do you need extra features?
If you think there’s a need for it, then feel free to add it. However, you must remember that additional features always have equivalent cost or price. This is why you need to think carefully about it because it’ll reflect on your future repayments.
With all the available home loan options out there, it is hard to take the right pick. However, as long as you have a good understanding of how the industry work and what exactly to look for, you’ll certainly find a plan that will match with your lifestyle and needs.