Blog Property reports: Key mortgage considerations

Property reports: Key mortgage considerations

06 May 2014
Property reports: Key mortgage considerations

Homeowners seeking a great mortgage rate for a new property are not alone - getting the right rate is an important part of the home buying process.

If your current property is too big, a bit cramped or you fancy living in a different area, then finding a new place to call home may be in the cards.

Make sure you've run through this checklist when you're taking out a new home mortgage.

Obtain a property report

Before you secure a loan, you'll need to find the perfect property!

Low interest rates are great news for homebuyers looking to secure a competitive rate, and it's always a nice feeling when your monthly or weekly repayments are going towards your own property rather than paying rent on someone else's.

However, there also comes responsibility with owning your own property.

This is nothing to be afraid of, but purchasing a new home for you and your family does require some thorough research. One important part of selecting the ideal property is obtaining a property report.

A property report is a useful tool when purchasing a home as it provides a comprehensive breakdown of what's going on in the suburb you're looking to buy into.

If you're moving into an area you're unfamiliar with - whether it's a suburb on the other side of town or an entirely new city - it's even more important to obtain this information so you have an accurate picture of what to expect from this area.

This includes recent growth, projected growth and amenities available. If you have young children or plan to start a family soon, you might want to know that a potential new home is close to plenty of parks for the kids to run around in, good schools, and adequate services.

A property report - such as the RP Data Comparative Market Report available on the website - will give insight into a particular property as well as its surrounding area.

For instance, you'll get an idea of how much a home has sold for previously, which can help you when you're coming up with figures for the pre-approval stage of a home loan application.

You'll also get information such as a property description, a suburb profile and even demographics of the area.

Considered an online lender?

Everyone wants to keep their home loan costs down - and fair enough!

Understanding the principal and interest parts of the loan is an important first step when it comes to budgeting for your loan. Then you'll need to decide whether to take out a fixed-rate or variable-rate loan. There are even split-loans available.

Another way to drive down your borrowing costs is actually related to technology.

Online lenders provide some great mortgage products that can be tailored to your borrowing needs.

Even better, online lenders are able to keep things simple by cutting out expensive overheads - and the savings can be passed onto you, the borrower! Highly competitive home loan interest rates are certainly something to smile about.

However, online lenders can still provide home loans full of all the features you need, so you won't miss out on a handy redraw facility, for instance. Offset accounts are also requested by those who want to utilise their savings to mitigate the interest owing on their mortgage, for example.

Whether you're after a home loan with a fixed or variable rate, an online lender can help you out and offer a solution that contains specific loan features and competitive rates.

Photo by Icons8 Team on Unsplash