The Power Of A Good Deposit
There are many steps involved with securing a home loan and each stage has its own set of requirements.
While various parts of your application can affect your mortgage terms, including income, accumulated debt and family size, one factor stands out as highly significant to the outcome - deposit size.
The more money you have to put down towards your property, the broader your home loan options will be.
A large deposit can also give you the power to negotiate a cheaper interest rate, setting you up for more manageable payments in the future.
It also means that the principle amount owed will be reduced, making it possible to become debt-free sooner.
A mortgage calculator can help you to determine savings that you would achieve by securing a substantial deposit.
If you feel that this strategy is out of your reach, it may be worth having a chat with your local mortgage broker to discuss creating an achievable savings plan.
While it is possible to take out home loans with smaller deposits, it is important to assess your financial situation to ensure you do not take on more than you can handle.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.