By doing a little homework you may already have some idea of how much you can borrow, and the terminology of some products on offer. It will also
prepare you for all the questions you will be asking your broker when you meet, remember, there is no such thing as a silly question when it
comes to finance!
How much can I borrow?
Your mortgage broker can assist you to work out how much you can and want to borrow but you should do some initial budgeting. Don't forget to factor
in those additional costs that you will be paying including solicitors fees, moving costs, service connection fees and insurance.
Use calculators to get an approximate idea of what you can afford.
The estimates you obtain though online calculators may vary from the actual amounts, depending on numerous factors, so only
use them as a guide.
The most important factors in considering the amount you can lend will be your income, deposit, other financial commitments,
interest rate and value of the property being purchased.
Take into account current income and commitments, perceived needs in the foreseeable future, and changes in your family situation
that could affect ability to service proposed borrowing such as maternity leave.
Am I eligible for any Grant's?
Your mortgage broker will be able to help you with your eligibility for the Federal Government's First Home Owner Grant scheme (FHOG). The scheme was
introduced in July, 2000, by the Federal Government and involves a tax-free grant of $7,000 to first home buyers. All state and territory governments
provide the grant through their respective revenue offices.
Researching the market
Do your homework and learn about home loan terminology, costs and features of loan products in the market to boost your knowledge.
Go to About Home Loans for information on "Fees, costs and charges, Types of interest rates, Loan products and features, and Types of lenders"
Questions
Write down any questions you may have. Make sure you clearly understand the situation so that you can make an informed decision. Contact your mortgage broker if you
have any further questions, there is no such thing as a dumb question in finance!
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