5 Ways to Get the Most
out of Your Mortgage

Mortgage applications can be a challenging experience for many potential home buyers. Applying for a home loan is a long-winding and document-driven process, sometimes riddled with confusion or frustration. With these helpful mortgage tips, however, your home buying experience need not be draining. Find out how you can have an easier time purchasing property in Canberra and get a loan commensurate with your budget and preferences.

Tips for landing the best mortgage terms:

Maintain a good credit score

All home buyers must prioritise their credit score before thinking of buying a home. First, have a clear idea of your own credit score. Is it good enough to secure your dream home? To access a wide variety of home buying options, your credit history should demonstrate trustworthiness and discipline. Meaning, timely and consistent payments as well as absence of unpaid debts. Credit score affects your eligibility for certain types of loan, the amount of money you can borrow and interest rates.

Be firm about your budget

It is always a good idea to get pre-approved for a mortgage before you explore your options. The use of a mortgage calculator will also help you identify your financial capacity and adhere to the budget you set for yourself. When applying for a mortgage, also take into consideration maintenance costs, renovations, furnishings, property taxes, utility bills, homeowner's insurance and other expenses home owners are likely to incur. Make sure to choose the top amount offered to you and set aside 20 per cent to cover said expenses.

Choose the right loan type

What are your home loan options? It is important to know what they are prior to your application. This enables you to choose the type of loan that best suits your needs. These mortgage types may include the following:

  • Fixed-rate mortgage
  • Adjustable rate mortgage
  • Variable rate home loan
  • Solar home loan (for solar-powered properties)
  • Residential or commercial construction loans
  • Government loans
  • Professional loans

Weigh your options

A simple rule for choosing a mortgage plan is to compare all the lenders who made an offer and the terms you qualified for. The first lender is not always the right one for you. So expand your horizons and talk to other lenders too. Take your time and select the lender that offers a better interest rate than the rest. You may also look into your local community banks, some of which have competitive rates and a range of lending options to choose from.

Prepare documents in advance

Do not submit your mortgage application until you have all the required documents. Gather and organise your documents before you meet with a lender. They will usually ask you to present the following:

  • Credit report
  • Tax returns
  • Bank statements
  • Proof of income
  • Pay stubs
  • Valid ID cards
  • List of of properties or assets owned (plus proof of ownership)

Apply for Mortgage Wisely

Consider all the tips above before you apply for a home loan and embark on homeownership. It also helps if you have some savings in place so that you need not rely on a mortgage alone to build or purchase your dream home. There will be lots of learning and unlearning to do, but as long as you know your priorities and work with a reliable buyers advocate in Canberra, you are unlikely to make irreparable mistakes.

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