| From Darwin to Dubbo, Brisbane to Broome,
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| | variable and fixed rates. Compare what's
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| Australia has one of the highest levels
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| | on offer with different banks (not just
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| of home ownership in the world. In spite
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| | the big 4), mortgage brokers and boutique
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| of the recent surge in prices in every
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| | lenders. Some places may offer only one
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| capital city, that great Aussie dream of
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| | or two loan types, but lenders such as
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| owning your own patch of paradise is
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| | HSBC Australia have no less than 9
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| still what most of us aspire to. But if
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| | different loans to suit everyone's
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| you're smart and do some planning, there
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| | lifestyle. Well worth checking out.
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| are clever ways to make buying your own
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| | 5. Don't forget about fees - keep funds
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| home a little easier to do.
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| | aside
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| Here are seven good tips to help you get
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| | Okay. You've been saving hard for a
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| the front door key faster.
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| | deposit and your loan has been approved.
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| 1. Don't be swayed by fabulous furniture
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| | When you take the plunge a sign a
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| and fresh flowers.
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| | contract of sale, there are all sorts of
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| Many home sellers now use professional
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| | little (and not-so-little extras) added
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| stylists to ensure their property looks
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| | on. These include stamp duty, legal
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| the best at open for inspections. But
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| | costs, disbursements, mortgage insurance,
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| look beyond the designer cushions and
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| | pest inspection report, survey report,
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| fresh flowers. Be practical. Do a pest
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| | builder's report, loan application fee,
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| and building inspection and check for
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| | valuation fee, registration fee and so
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| major structural damage or signs of rot.
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| | on.
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| And, don't forget to ask yourself all
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| | 6. Another secret. Ask about
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| those mundane questions - such as is
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| | "professional package" discounts
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| there enough cupboard space in the
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| | Banks are a lot more competitive nowadays
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| kitchen or will your sofa fit through the
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| | and actively reward customer loyalty. If
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| front door?
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| | you're earning a reasonably good salary,
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| 2. Location first, property second.
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| | say more than $50,000 a year, or $80,000
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| Your first property may not be your dream
| |
| | or more with a partner, ask about the
|
| home, but it can be a vital springboard
| |
| | "professional packages". The home loan
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| towards that long term goal. The trick is
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| | interest rate you are offered is usually
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| to buy in a location where property
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| | discounted by 0.5 per cent, which can
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| values are growing at the same rate as
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| | really help. If you have a strong
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| the location you ultimately want to live
| |
| | relationship with one lender and
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| in.
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| | consolidate all your business with them,
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| This means compromising on the size or
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| | you can qualify for more discounts,
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| style of property. Buying a town house or
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| | savings account fee waivers and credit
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| a unit instead of a house, or a one
| |
| | card annual fee waivers.
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| bedroom instead of a two bedroom
| |
| | 7. Forget that daily latte. Extra
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| place.The important thing is that you'll
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| | payments can reduce your interest faster
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| have a foothold in your dream location.
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| | If you gave up buying your morning latte
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| When you've accumulated more equity
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| | on the way to work, you can save over
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| through capital growth, you'll be able to
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| | $700 a year! Put it towards your loan.
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| trade up to your dream home, too.
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| | Making extra repayments is one of the
|
| 3. Small apartment blocks versus large.
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| | best ways to reduce the total interest
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| The glamour of a big modern apartment
| |
| | paid and term of your loan. Some people
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| block with outdoor pool, gym and on-site
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| | even try making payments every fortnight
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| caretaker can certainly win over buyers.
| |
| | - great if it works for you and your
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| But here comes the crunch. You pay
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| | budget.
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| expensive body corporate fees every
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| | As a rule of thumb, every $1 in extra
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| quarter and ongoing maintenance charges.
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| | repayments you make early in the life of
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| Smaller blocks are usually older with
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| | your loan saves around $2 in interest
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| fewer (if any) facilities, cost less to
| |
| | over the term of the loan, depending on
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| run and are often better maintained
| |
| | the level of interest rates.
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| because of a higher level of owners
| |
| | If you have spare cash from selling your
|
| versus renters. If you're in the market
| |
| | car or a garage sale, think about making
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| for an apartment and see several places
| |
| | a one-off lump sum payment. Check first
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| for the sale in the same block, chances
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| | that your loan allows you to make
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| are the fees are the reason why. Beware.
| |
| | additional repayments without a penalty.
|
| 4. Save valuable time. Search online for
| |
| | Happy house hunting!
|
| the best loan
| |
| | Cathy Howley is Creative Manager and
|
| When it comes to finding a loan, it pays
| |
| | Copywriter at Options Strategy,
|
| to do your homework. There's a minefield
| |
| | Melbourne. The digital agency with the
|
| of possibilities, offers, types of loans,
| |
| | strategy edge.
|
