Advice About Finance and loans

Finance is a great way to purchase a property, but there are several important things to consider beforehand. As it can be difficult to compare loans and finance options, especially when you are dealing with large sums of money, make sure to always shop around for the best deal. You can also ask your trusted financial advisor or mortgage broker for advice on how to find the best deals.

When it comes to purchasing a property, there are several options on how to finance the purchase. One of those options is taking out a loan from a financial institution or bank.

There different types of loans will have different interest rates and terms and conditions attached to them. When comparing loans, it’s important to pay attention to the interest rate, as this is what determines how much you will pay in interest and thus can cost you a lot of money.

What makes a good affordable loan:

  • A lower interest rate: it’s always better to go with a lower interest
  • Low or no fees: avoid loans that have unexpected costs attached to them
  • Repayment flexibility: some loans restrict how you can spend your money and what you can use it for, such as making repayments to other creditors. Make sure that the repayment conditions of the loan suit your current financial situation.

Finance is a great way to purchase a property, but there are several important things to consider beforehand. As it can be difficult to compare loans and finance options, especially when you are dealing with large sums of money, make sure to always shop around for the best deal. You can also ask your trusted financial advisor or mortgage broker for advice on how to find the best deals.

Pros:

  • Finance gives you more time to put money aside
  • Finance allows you to include renovations in your monthly repayments

Cons:

  • You sometimes need a 20% deposit; Finance can be expensive. If you don’t have the 20%, you will need to pay lenders’ mortgage insurance (LMI) which is usually more money than what you’d need for a deposit. This implies that you shall end up paying more money for your loan facility.