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  • Much has been said about how important it is to own one’s own home or apartment. And often for the acquisition of their homes we use such a financial instrument as a mortgage. With a mortgage loan, you immediately become the owner of your own home, and there are many pros. Now you do not need to pay for renting someone else’s apartment, you can do repairs and furnish furniture to your taste. In addition, you just so suddenly do not evict from the apartment (if, for example, the owners of the apartment suddenly wanted to sell it). From the “minuses” is that the apartment is “under an encumbrance”, i.e. as collateral for the loan, as well as monthly payments for a mortgage. This is not counting additional insurance and commissions. The support of the mortgage broker Geelong is there also.

    So, if you decide to take an apartment in a mortgage, then we will give you some basic advice

    • Find out the amount of the initial mortgage payment. Some banks mean 10% of the cost of housing, others – 15%. And under certain conditions it is possible to issue a mortgage without an initial installment. In addition, at the stage of mortgage registration may be additional payments (for example, the services of the appraiser, the commission for the issuance of a loan, housing insurance and his life). Find out all this from a consultant at the bank, where you plan to take a mortgage, and find out if you have that much.
    • Estimate the amount of monthly contributions and determine how they will affect your current standard of living (how much money will remain from your income after paying monthly mortgage payments and will you have enough for a month). The amount of monthly payments depends on several parameters (interest rate, loan term, loan amount). That is, for example, you can increase the term of the mortgage to reduce monthly payments (when agreed with the bank ). The size of the monthly installment you can calculate using a loan calculator . In addition, provide for your mortgage payments “airbag”- this is a money fund equal to three monthly payments for a mortgage. After all, anything can happen (delay in salary, reduction, prolonged sick leave), and the delay in payments will not be in your favor.

    Estimate the prospects of your future income and opportunities for additional earnings

    They will allow you not only to make monthly mortgage payments without problems, but also make additional payments (again, in agreement with the bank) that will allow you to pay off the loan for the apartment ahead of time.

    • And finally, if you have plans for the birth of children or major purchases (car, expensive repairs) – it is necessary to consider this when obtaining a mortgage. Otherwise, incorrectly planned expenses can “undermine” your family (or personal) budget, and you will not be able to make timely payments in full on your mortgage (and with systematic delinquency for a short time and lose your mortgaged housing). Also, do not forget about mortgage tax deductions , which can be used either as a “safety cushion” (for its replenishment, or as an additional fee (if such a “pillow” you have already formed).

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