Buying a home is one of the toughest life decisions. Making such a big financial commitment probably for the first time in your life with a very vague idea about the property type and location would not help you gain the best out of your investment to secure a healthy space for your family. The home buying process itself involves so many stakeholders and communication among these parties that are often not that clear. In addition, based on each one of our personalities we attain inherent behavioral biases in financial decision making, and real estate is one of them.
When you are getting your home loan, there are different discount margins used by the lenders to calculate the net interest rate that you would be paying.
A sample of a real credit contract for a home loan is shown in the extract below:
In this example, we can note the following:
Buying vacant land and building a house on it is an exciting plan. People get easily sold to the idea that they would be building their dream house and the temptation is even more when the selling agent provides well-articulated pressure tactics.
Home Loan is probably the biggest debt you currently have. It is important to make sure that you are paying competitive repayments, the products are relevant and the facility is being used effectively. Home Loan Health Check is a quick 10-minute session with one of the experienced mortgage consultants to find out if any further actions are needed to get best out of a home loan.