Record low interest rates afford those with stable incomes the opportunity to invest in both the housing market and their future.
To take advantage of current interest rates, potential buyers must know exactly the type of house they can afford. This will take more than a comprehensive understanding of the current interest rate climate. To fully take advantage one must consider all costs, which is where our team at Lockwood & Ward will come in handy. We will be able to offer your concrete advice, not only on the appropriate loan or lender, but also on your financial situation and future.
With interest rates so low many buyers are tempted to choose their dream house; the house which ordinarily is so expensive, but is so low on the market at present and offers such low monthly repayments.
It’s tempting I know, but to get the house you can afford, with the repayments you can live with, a buyer must be smarter than that. Consider all costs associated with the property before making an offer. Many buyers fall in love with a house from the get go, forgetting that interest rates may well increase once the honeymoon period is over. If you’ve gone beyond your means this rise in interest rates can be devastating.
Avoid approaching your bank and requesting the maximum amount they will offer; doing so leaves you no room for movement should your circumstances change. Smart buyers will take into account all costs associated with the acquisition, maintenance and regular expenses of a house. Having done so, you are then in a position to decide what type of house you can afford.
Note that there are numerous potential bank charges associated with taking out a home loan; application fees, valuation fees, mortgage insurance, legal and account-keeping fees, as well as a set-up charge. These potential fees are all the more reason why you need professional help to not only budget accurately and plan for the future, but also to find the appropriate lender and ideal loan. We here at Lockwood & Ward will be sure to approach numerous lenders, comparing fees and rates, and finding the best home loan for your current and future situations.
When you’ve determined the exact costs of your loan, including monthly repayments, it is time to put that budget into play. Some home buyers will purchase homes in cheaper outer suburbs but will commute long distances into CBDs each day; it may better serve your purpose to purchase a home in a more expensive suburb which is closer to your work and will cut down the time and cost of your commute.
Essentially we advise to take every possible cost into account when finding a home loan and purchasing a property, and we’re more than happy to help you every step of the way. Expert advice is just a phone call away.