The best way to buy your home and renovating it is to find a mortgage lender who is familiar with the type of property you want to buy.
The best way is to use a mortgage broker, says Andrew Stott, director of home loan at mortgage broker Fidelity Mortgage.
You can choose a company like that.
“It will make the process easier,” he says.
“There are no strings attached.”
There are several mortgage brokers out there.
They all provide the same advice, including the same basic information: the home needs to be built up to a certain standard, the property must be worth at least $1.2 million and the loan must be at least 80 per cent.
If you do decide to go to a mortgage agent, it is important to check that the company is up to date with current laws and regulations.
“Mortgage brokers will work with you to make sure your property is safe and secure,” says Mr Stott.
“There’s a lot of good advice out there that can help you in your process.”
Read more about mortgage brokers.
How to find your home loanerIf you have already taken out a mortgage and you are considering going to a property manager, it might be worth considering getting a mortgage loan first.
The biggest reason to go this route is that the finance company will be responsible for managing your loan.
“If you’re buying your first home, you might be a bit unsure if the company will really be able to do your refinancing,” says Andrew Smith, chief executive officer at property broker Mortgage Brokers Australia.
“You can get advice from a reputable company.
That’s a great first step.”
But Mr Smith says if you want more information, you should get in touch with the lender directly.
“A lot of times, there’s a range of mortgage brokers in Australia, and if you have a problem with one, it’s probably not the best place to go,” he said.
What are the key costs of a home mortgage?
Home owners should be aware that if you borrow a loan for a new home, the costs could rise significantly.
“The costs of an initial mortgage vary depending on the size of the loan and the size you need,” says Trish Smith, head of financial services at property investment firm AER Partners.
“So you can have a lower interest rate for a smaller loan.”
The cost of the mortgage is set by the finance companies, and the average rate varies from one lender to another.
But you can also take out a home loan that’s lower than what you are currently paying.
That’s because, as a mortgage rate goes up, the monthly payment on the loan goes up.
“But if you go to the loan, and it’s less than what’s on the table, then the loan’s worth less,” says Ms Smith.
Read the article: Mortgage broker: Home loan rates, fees and conditionsThe average home loan rate in Sydney is $1,898, compared to $1 in Brisbane, $1 at the bottom of the table and $1 on the high side of things.
“We know that’s going to be the case,” says AER’s Mr Smith.
“You need to look at the mortgage that you’re getting from a finance company and decide if it’s the right loan.”
You can look at a different company, or you can look to an independent mortgage broker.
But it is worth looking at the finance terms on a home before you get involved, says Mr Smith, because there may be other costs associated with it.
“I wouldn’t say the mortgage broker is going to come out and say, ‘Hey, look, we’re offering you a cheaper mortgage,’ but you’re going to have to look through the terms of that loan,” he explains.
“As you go through the process, there may not be a lot more information than what we’ve got.”
Read the report: Home loans, rates, finance costs and fees: How much will you pay?