Ready to buy your first home? These are some questions we might ask you - PART THREE
Are you a first home buyer looking to get your foot in the door?
This is both a very exciting - and daunting - time!
So we’ve written this series to help. It goes over the key questions lenders are going to ask you, when you sit down to arrange your loan.
Have you read parts one and two? These covered your deposit amount/other costs associated with buying a house and also your earnings and ongoing mortgage repayments.
If not - it’s worth going back and having a look. They are extremely helpful!
If you’re up to speed - you’re ready for part three!
Part Three: Fixed? Or Variable?
This is a personal decision as there are definitely pros and cons to both. What’s best for your circumstances might be different to the next person.
A fixed loan ensures your repayments won’t change. You can choose between a term of 2, 3 or 5 years. This will ensure that rate changes won’t affect your repayments.
A variable loan means your interest rate will potentially go up or down, depending on rate changes. The lender recalculates your minimum repayment based on the new rate. But it can also offer more flexibility, giving you the option to pay the loan off more quickly.
There are other things to consider with your loan too:
- Are you able to make additional repayments, on top of the minimum required?
- Can you redraw?
- Can you offset the interest paid with a savings account?
These are things to discuss with the lender.
CWCU has fantastic home loan options to suit all kinds of people. Have a look at what we offer, or get your application started online.
Chat to someone who knows what’s up!
That’s a wrap on this series, we hope you have found it useful.
If you’re wanting more information, our Lending Specialists have a wealth of experience and have helped many young people achieve their dream of home ownership.
Stop into a branch and say hello, if you prefer to deal with a financial institution that puts you closer to the decision makers and saves you the stress of back and forth administrative red tape.
|We also have a Mobile Relationship Officer who will come to your doorstep, at a time that suits you, if getting into a branch is tricky.