Finance
Home Finance Tips
Once you’ve saved up the deposit for a home, don’t forget to take into account all the extra fees that come with buying a house - some or all of these: stamp duty, legal costs, disbursements, mortgage insurance, pest inspection report, survey report, builder’s report, strata inspection report, loan application fee, valuation fee, registration fee, sundry fees like refinancing or switching fees.
Buying a home is a dream of a lifetime for most of us. Before applying for a home loan, consult professionals who can help you deicide what suits you best. Here are some tips that will be helpful when you are looking for a house on your own. Applying on a single income will get you smaller loans. Include your spouse’s income and any other incomes that your immediate family earns. Clubbing the family’s income will move you to a higher bracket of eligibility. Ensure that additional incomes such as performance-linked pay and perks get included in the computation of your salary. You could also place your investments as security for higher loans.
Consider a housing loan which is tied up with your current account in the bank in such a way that the balance in your current account reduces your loan by that extent on a daily basis and the interest is calculated on a daily reducing balance amount.However in this scheme you may be charged a higher interest rate (0.5 percent p.a. more). Ask if the home loan company also gives you a debit card. Ask if the lender has a scheme in which a monthly installment can be skipped by paying a token penalty in times of financial difficulty. It’s no wonder that the majority of homeowners dream of one day being able to pay off their home loan and live a life free from the shackles of interest rates, home finance and worries about meeting the monthly mortgage payments because the largest expense the majority of us take on in a lifetime is our mortgage and each month our home finance payments take a substantial chunk out of our take home pay.
