What To Consider When Choosing Finance For Your New Home
Finding the right home builder and house design is incredibly exciting, but to get the home building journey underway most buyers will first need to find a home loan. There are a lot of factors to consider when choosing finance for your new home.
There are so many lenders and trying to work out which one will best suit your needs can be daunting. As a well-respected Perth Home Builder, Ben Trager Homes has helped many clients get into their dream homes and along the way, we have learnt a lot about financing homes. Here are a few things to consider:
The Top Factors You Should Consider When Choosing Finance For Your New Home...
Does The Loan Suit Your Needs?
There isn’t one loan for all, as everyone’s circumstances are unique, so what might suit one person, may not be the best option for you. Doing a bit of research upfront could save you a lot of stress in the future. We have found that online comparison sites are a good place to start, as they allow you to easily compare home loans from a range of different providers.
Can You Afford The Repayments?
Picking the first home loan you see that offers a low interest rate is tempting, but you need to remember that you may have the loan for 30 years and interest rates can change. There are some useful online tools, such as repayment calculators or borrowing calculators, that can help you work out exactly how much you can afford.
Make sure you do some calculations with the interest rates set at a couple of percentage points higher than they are now, this will give you an idea of how much you could end up paying if interest rates rise.
Fixed Or Variable Rate?
Deciding whether to fix your home loan rate or not can be confusing and it will ultimately come down to your own personal circumstances. Are you comfortable with your loan repayments possibly increasing? Do you plan on selling your new property in the short term? Do you intend to make additional repayments on your loan? Asking yourself these questions may help you in your decision making process.
Value For Money
For most people, when choosing a home loan, the interest rate is the biggest deciding factor. Although it’s important to look at interest rates, there’s a lot more to consider. There are often fees associated with home loans and some lenders also offer incentives and rewards, so be sure to look at the bigger picture. What may seem like the best option, could end up costing you more once fees have been added. Talk to an independent mortgage broker if you want guidance and advice specifically tailored to your situation.
At Ben Trager Homes, our expert staff are on hand to answer any queries you may have. Chat to one of our onsite consultants at one of our stunning Perth display homes, browse our easy to navigate website or call and speak to one of our friendly team members now.