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Budget - make sure you have an accurate and detailed budget which takes into account all expenses associated with property purchase, including stamp duty, council rates, and other fees. |
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Limit Yourself - make sure you fully understand the impact of your regular spending levels on your new budget, and allow room for interest rates to rise or for some unforeseen additional spending. |
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Lifestyle - a mortgage is a big commitment and you may have to make changes to your regular spending practices if you are to meet your repayments with ease. |
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Select - Think very carefully about the product offerings and how this relates to you and your spending habits. There are a number of products on the market and its important that you find a product that best suits your needs. |
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Consider Options - such as an offset account to help you repay the loan faster and avoid the very expensive costs associated with long term debt. |
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Back to Basics - managing a home loan is a big commitment, and it's important to be realistic about what you agree to borrow and what you can afford. |
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Ask for Help - if you do not think you can keep meeting your mortgage payments, contact your lender immediately. Do not wait until your lender is forced to be involved in facilitating a solution. In many cases, a proactive solution can be negotiated if your lender is given the opportunity to work with you. At the end of the day most lenders would rather try to help you through your short-term issues and keep you in your home. |
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Refinancing - If you opt to refinance your mortgage after a few years, make sure that the product best suits you and your needs, and that you are aware of the fine print. |
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Homework - Whether you're buying your first home or lining up the next investment property, the right research is essential for ensuring success in the property market. |
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