{"id":4117,"date":"2017-05-07T12:53:18","date_gmt":"2017-05-07T12:53:18","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/?p=4117"},"modified":"2017-05-07T12:53:18","modified_gmt":"2017-05-07T12:53:18","slug":"key-questions-to-ask-before-taking-on-a-mortgage","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/key-questions-to-ask-before-taking-on-a-mortgage\/","title":{"rendered":"Key questions to ask before taking on a mortgage"},"content":{"rendered":"

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Looking to buy a house<\/a> and get a loan? Here are a few issues you need to tackle before you take out a mortgage<\/a>. Picture: Getty<\/p>\n<\/div>\n

For most Australians, a mortgage is the biggest financial commitment of their lives, so knowing what to ask before taking the plunge can be the difference between fiscal success and stress.<\/strong><\/p>\n

John Tindall, a Choice Home Loans<\/a> mortgage broker in Wattle Grove, Sydney, shares the key questions all potential borrowers should ask before taking out a mortgage.<\/p>\n

How much can I borrow?<\/h2>\n

\u201cPeople understandably focus largely on how much they can borrow, without entering financial stress into the equation,\u201d Tindall says.<\/p>\n

Calculators which estimate borrowing capacity are available online, but are often a \u201cone-size-fits-all\u201d assessment.\u201d<\/p>\n

\u201cThey don\u2019t cover all scenarios, such as part-time or casual income and may not cover off the benefits and costs of lenders\u2019 mortgage insurance. For certainty, it\u2019s easy to apply for a pre-approved loan,\u201d Tindall says.<\/p>\n

This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.<\/i><\/span><\/strong><\/h6>\n

What are the fees?<\/h2>\n

The comparison rate offered by a lender provides a guide to the actual cost of a loan, by reflecting for example, annual fees.<\/p>\n

\u201cPeople should also ask for an estimate of the additional transaction costs, such as government charges, like stamp duty, lender fees and lenders\u2019 mortgage insurance. As a broker, I provide a \u201cmoney-in, money-out\u201d summary, so this is all very clear,\u201d he says.<\/p>\n

What is lenders\u2019 mortgage insurance and do I need it?<\/h2>\n

Lenders\u2019 mortgage insurance is an insurance designed to protect the lender in case the borrower can\u2019t meet the loan repayments.<\/p>\n

It\u2019s generally charged when the deposit is less than 20% of a property\u2019s purchase price.<\/p>\n

The cost depends on the percentage of the value borrowed and the loan amount, but it varies between lenders<\/a>.<\/p>\n

\u201cAlthough a potential additional cost, lenders\u2019 mortgage insurance can make the difference between getting the desired property and missing out,\u201d Tindall says.<\/p>\n

What features do I need?<\/h2>\n

These can include offset accounts, redraw facilities, branch versus online banking, additional repayments or the certainty of fixed rates.<\/p>\n

\u201cLike a new car, what features you need or want needs to reflect what you want to do now\u00a0\u2013\u00a0and in the future. For example, redraw and offset facilities can be a great way to save up for a future holiday. You should discuss these with your broker or banker.\u201d<\/p>\n

How quickly can this be done?<\/h2>\n

It\u2019s best to have at least a conditional approval before house-hunting, Tindall says.<\/p>\n

\u201cDepending on loan volumes, some lenders can take twice the time to approve a deal than the normal cooling off period allows. If you need it quickly, be prepared to work quickly and collaboratively with your broker or banker.\u201d<\/p>\n

Can I get a First Home Owner Grant?<\/h2>\n

First-timers should always ask about any\u00a0grants they may be eligible for, Tindall advises.<\/p>\n

Funded by states and territories and administered under their own legislation, such grants make funds<\/a> available to first home buyers and are often coupled with savings on stamp duty.<\/p>\n

\u201cThe eligibility for such grants is also often misunderstood, so do your research,\u201d he says.<\/p>\n

This information is of a general nature and does not constitute professional advice. You should always seek professional advice in relation to your particular circumstances.<\/em><\/h5>\n

 <\/p>\n<\/div>\n

Realestate.com.au <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

  Looking to buy a house and get a loan? Here are a few issues you … Key questions to ask before taking on a mortgage<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":4118,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[2],"tags":[981,1403,410,15239,12908,543,347,617,698,1329,408,41,409,818],"class_list":["post-4117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-buyer","tag-a-house","tag-buy","tag-buyers-advice","tag-chase","tag-home","tag-home-buying-guide","tag-home-loan","tag-house","tag-insurance","tag-loan","tag-mortgage","tag-property","tag-property-buyers-advice","tag-real"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/05\/couple_getty_article-1024x768.jpg?fit=1024%2C768&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":661,"url":"https:\/\/amazingproperty.com.ng\/blog\/the-best-places-to-score-a-mortgage\/","url_meta":{"origin":4117,"position":0},"title":"The Best Places to Score a Mortgage","author":"Amazing Property","date":"February 7, 2017","format":false,"excerpt":"[ad_1] Sumter, Fla., is the best place in the country for a borrower to get a mortgage, according to a new study by SmartAsset. 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See basic qualification information and down payments for these home loan options to see which is best suited for you and your next home. \u00a0 Conventional This is the most common mortgage option and usually has the\u2026","rel":"","context":"In "Property buyer"","block_context":{"text":"Property buyer","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/property-buyer\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4539,"url":"https:\/\/amazingproperty.com.ng\/blog\/what-to-know-before-getting-a-mortgage-with-friends\/","url_meta":{"origin":4117,"position":2},"title":"What to know before getting a mortgage with friends","author":"Amazing Property","date":"May 7, 2017","format":false,"excerpt":"[ad_1] Make sure you discuss the property purchase in detail and where possible draw up a written agreement. 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