Working to a budget and making sure you choose a mortgage and loan amount that is suited to your investment objectives could save you thousands of dollars and a heap of stress.
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The first step is to make sure you are comfortable with the financial commitment you are about to make. Take a hard look at your budget and make sure that you are comfortable that you are going to be able to make the repayments. You should also allow for unexpected situations like extended periods without a tenant or possible maintenance.
There is no point in borrowing the maximum the lender is prepared to offer you unless you need it. Each lender has a unique servicing guideline to determine how much you can borrow, and while you may qualify you for a much higher amount than you need – don’t over extend yourself. You need to be comfortable that you can meet your current and future commitments.
The next step is to choose a loan or package that meets your particular situation and requirements. This can be quite daunting if you are not familiar with the market and a mortgage broker is good option to guide you through the maze of products, lenders and packages – best of all it should not cost you a cent to use broker as they are paid by the lender not the client.
KEITH MARSHALL | DIRECTOR
AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS
The information provided in this page is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information you should consider the appropriateness of the information with regard to your objectives, financial situation and needs. You should seek independent advice from your financial adviser before making any decisions.
AUSTRALIAN MORTGAGE AND FINANCIAL ADVISERS (AMAFA)
Phone: 07 3378 2056
Fax: 07 3378 2069