Myth Busting Mortgage Advice
So it’s time to be thinking about a mortgage and you have been discussing it with friends and family. Everybody you have spoken to is likely to have their own story to share along with various words of wisdom.
Unfortunately, there is a lot of poor advice out there and some of it you really would be wise to avoid. We will look at the top four pieces of misinformation that may ultimately cost you in the end,
Only Get a Mortgage From Your Bank
Many people think that you should only get a mortgage from your own bank. It is often believed that you can enjoy several advantages if you go to one of the larger banks with which you have a financial history.
Unfortunately this is simply not true. Seek the advice of a good mortgage broker who can offer all the products available that align with all your current and future financial needs.
Take The Lowest Interest Rate
Family and friends often recommend finding a mortgage with the lowest interest rate. However, the exact rates rely on numerous parameters.
There are many favourable mortgage terms around and opting for the lowest may mean that you miss out on other overall benefits. Seek guidance from your mortgage advisor, examine all the options and work with your advisor to select the option that is best suited to your individual circumstances.
Over time consider refinancing your mortgage if the rates lean towards a more favourable direction for you.
Work with your advisor to initially choose the right mortgage and be confident in your ability to refinance as circumstances change.
Borrow as Much as You Can
You may have received the advice “Borrow as Much as You Can”
Remember a mortgage is a loan and you do need to pay it back. The actual amount that you end up borrowing has to align with your circumstances and requirements.
Work through the options with your mortgage advisor and select the options to suit your needs.
Don’t Bother with an Agreement in Principal (AIP)
Have you been advised not to bother with an AIP?
It is possible to purchase a property without one but it is not wise to do so. With an AIP you are clear beforehand what you can afford . This puts you in a strong position.
Many home sellers require evidence of your pre-approval before they decide to commit to a sale. If there are several buyers interested in the same property those with their finances already in order will go to the top of the list.
Get in touch if you need further advice on anything property related.
