Choosing a mortgage is one of the biggest financial decisions you’re likely to make. There are thousands of mortgage deals out there, so how do you choose the right one for you?
The mortgage market is incredibly competitive and it can be hard to understand what exactly is on offer.
From the many different providers to the extensive range of products and rates available, we’ll take you through the routes to getting a mortgage, and the importance of carefully studying your options before making a decision.
What can you really afford?
How much debt can I handle?
Don’t over commit. Borrowing too much can be a big strain on your personal life and lifestyle. Think about what aspects of your lifestyle you may be willing to give up, and those that you can’t.
Am I being realistic?
Houses are like stepping stones – it’s probably best to start with something affordable and move towards your dream home as your personal earning capacity and equity grows.
What are my plans?
Think about what the future holds – both personally and financially. Are you a one or two income household and is this likely to change in the future?
What about interest rates?
Consider how any rate rise will impact on your ability to make repayments and factor that in when setting your borrowing limits. And don’t forget, there are added extras when purchasing a house, for example, stamp duty and mortgage duty, relevant property inspections, solicitors and application fees, as well as ongoing commitments including council rates, possible strata or body corporate costs and utility bills. Consider these costs when determining how much you can borrow.