What are the three most common mistakes people make when applying for a home loan?
1.
The first mistake we see people make is that they’ll often apply for the lowest interest rate they see whether that be online or with their existing bank. These can really harm you down the track because if that loan doesn’t have the features you require, it could actually end up costing you a lot of money.
2.
Secondly, we see people look for property first without working out what they can actually afford. The best way to approach buying a house is to work out what you can afford each month for a mortgage, then work out what sort of loan that is, add your deposit on top and that should help you arrive at what sort of purchase price you can aim for.
3.
And thirdly, we see people assume that their bank will reward their loyalty for having been banking with them for a number of years. This is actually not the case. Banks will reward you with a better interest rate based on the amount that you’re borrowing and the deposit you have.
