External factors influencing your home loan vs the ones you can change
When it comes to looking at your home loan, we know there are massive factors that influence house prices such as the housing marketing going up or down. There could be a supply and demand change, a widespread pandemic, a global financial crisis or it could be simply losing your job.
What happens when the unexpected happens?
Well, there are two levers in the mortgage equation. As said the factors that you can’t control and the ones you can.
The factors that are within your control surely play a big part in determining your home loan journey saving you time and money if you do it right. Factors to consider:
- How much you pay off
- The rate at which you pay it off
- Selection of bank or lender – Some lenders have vastly different offered rates, and this can be a massive influence over the overall total outstanding on the loan. It is crucial to get this right because sometimes the difference can be as much as a .7 percent difference in rates that are offered. It might not seem that much of a difference but over the long term it can make a massive difference to the time it takes to pay off the loan. This is an important factor over the total length of the life of the loan.
- Lenders have vastly different product packages that have varying terms and conditions. For instance, products can vary on installment structure and what you can and cannot do in terms of repayments. Some products allow for additional lump sum payments. Some give options others don’t it’s all dependent on what products you choose to go for.
- The overall selection of loan structure. This can be made up of fixed and floating rates and for how long?
- The most important factor is selecting the right mortgage broker for advice. A great adviser can save you thousands over the term of your mortgage and allow you to repay the loan at an even faster rate.
- The Selection of a correct mortgage broker can also allow you to have peace of mind knowing that your loan is being handled with care that is unique to your individual circumstances. in catering a package that suits each individual person a good mortgage broker can not only pick the appropriate products, but it means focussed time and focussed results.
Talk to an expert
If you’re thinking about your options in terms of mortgage it’s vital to talk through your financial situation with a professional financial adviser before you sign anything. You’ll get quality help to work out whether you qualify, how much you can borrow, and how to structure your loan in a way that works. A good adviser can also find a good range of lenders and rates for your situation.
Need a way over a financial hurdle? Talk to the team at Global Finance about your mortgage and Insurance options
For other ways we can help structure your loan you can also check out our award-winning interest Saver Plan.