Ensure You Understand Your Loan Contract

Finding your dream property is one thing, but you need to complement it with the right loan. Using a mortgage repayment calculator to find the best repayment scenario for your financial situation is another thing, but you also need to thoroughly understand your mortgage contract. While you’ll have a solicitor or a conveyancer checking the loan contract for you, you should also take time to read it yourself to ensure you fully understand what it is you are signing.

Many people use brokers to obtain a loan, but don’t often check the details of their loan contract. You need to be sure what you have asked for is in the loan. It should state the amount being borrowed, the annual percentage rate and the expected date you will pay the loan off in full -- usually after 25 or 30 years. You should also closely examine the list of fees applicable under certain circumstances.
Source: http://www.yourmortgage.com.au/article/buying-your-first-home--loan-contracts-142747.aspx

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