How do I pick a loan and what features do I need?

When buying a new property or refinancing your home, it’s vital that you not only pick the home loan that’s right for your individual circumstances, but you know it will continue to suit you well into the future. For someone who isn’t used to the mortgage market, the masses of lenders and products available can feel quite overwhelming. Everyone’s offering something which looks great on the surface, but is it the deal that’s going to be right for you, both now and in the long term?

If you’re wondering how to pick a loan and are asking yourself what features you need, then there are a few pointers that it would pay to take note of before you start. In the very beginning, you should always take a careful look at your budget. What deposit and monthly repayments can you afford and what features of the home loan are most important. For example, if you know you’re likely to be moving in the next couple of years, does the package you’re looking at come with the flexibility to mean no added cost? If you like the thought of re-fixing your interest rate, would you have to pay over the odds for the privilege?

Ask yourself if you feel confident in weighing up the benefits of the many introductory, fixed and variable rate mortgages that are out there, not to mention the fees and interest rates involved. It is important not to judge a package solely on one element, such as an incentive to buy, strangely low interest rate or minimal fees – these might be made up by higher costs elsewhere. Often things that appear too good to be true can be exactly that, so know what you’re looking at inside and out.

Ensure you get a really good view of the market and know how to compare loans in their entirety. Then once you have done this, why not ask around to find out how others have found dealing with that lender in the past. If it all sounds a bit baffling still, then it’s often a good idea to consult someone who has dealt with these kinds of loans a lot in the past, such as a good mortgage broker. This is someone who should be able to assess your situation, give you up to date and well informed advice on the right packages that are out there, have you fully in the know about what they entail and then help work out what will be the right structure for you.

In addition to offering the help above, a good mortgage broker, such as Paul Hixon from Loan Market, will be truly focused on helping you get the right deal for your home loan and will come with the right industry contacts and experience to know where to look for it.

Paul is currently based in the beautiful New Farm, helping clients from this area, as well as servicing Teneriffe, Newstead and other surrounding suburbs. If you want professional advice on the type of loan that’s right for you, then get in touch with Paul today.