A large deposit and a short repayment period may lower your interest rate. This combination can drive down the cost of borrowing dramatically, and wise old owls advise planning toward that goal. The rest of us, who live in the real world, often begin with the stark reality of a small deposit, potentially as little as 5% of purchase price.
This can be a good idea or a bad idea, depending on the rest of the plan. A mortgage broker at OH Mortgage Solutions can help you work through your options. Having begun with a basic equation, it’s time to walk through the mortgage process from getting your financial house in order to making your mortgage choice.
Three Bits of Preparation Potential Home Buyers Should Do
If you are a first time home buyer, make sure that you take advantage of the incentives that may help you maximize your deposit. The First Home Owners Grant (FHOG) is a tax-free government payment of up to $7,000 to anyone buying a first home in Australia. State and territory governments may offer additional bonuses and tax concessions. If you set up a first home savers account, the government will make a 17% contribution on amounts you deposit, up to $5,500 per year and subject to certain restrictions.
Check Your Credit Report
Lenders are really simple creatures. They just want reassurance that you can repay what you borrow. If you make them feel uneasy, they will raise your interest rate. You can maximize the buying power of your deposit with strong credit. Check your credit report, and if there are infringements, bankruptcies, credit card defaults or large unsecured debts, take the steps necessary to address the situation yourloansllc.com/3-month-payday-loans/ customer service. You can get information about how to check your credit report at the Australian Securities and Investments Commission website.