Determining the type of loan that suits your needs is the best way to begin.

It’s important to consider which loan features are appropriate to your lifestyle. If you’d like the security of knowing exactly how much your regular repayments are going to be for a given period, then a fixed loan may be for you. If you want to make additional repayments, then a variable rate could be more suitable. Should you have surplus disposable income, then an all-in-one loan or 100 per cent offset account might be the ticket.

Once you’ve determined the type of loan that best suits your needs, it’s time to get your affairs in order and go mortgage shopping. You will need the income and expenditure calculations you did in Step One, some proof of income such as pay slips or recent tax returns, proof of your genuine savings history and other documents that may be required by specific lenders.

Our Comments

Here in Australia we are very lucky in that we have loans, which are very feature rich, but unfortunately all these features and how they relate to you can get very confusing. As we transact with the majority of the major lending institutions in Australia it is our business to be aware and conversant with all the different loan features available. We even have software programs which help us identify the loans available which have the features that you’re looking for