Your mortgage, Everything you wanted to know

There are several important things that one needs to know before obtaining a mortgage. Your mortgage will have significant impact on your family or business and therefore thorough due diligence has to be done before applying for a mortgage. Some of the most important points that need to be verified are interest rates, repayment period and other terms and conditions. The current variable interest rates in the Australian market hovers up and down all year and is relative to the Reserve Bank’s cash rate. Given the current economic situation, the Australian reserve bank is cutting down on interest rates to boost the economy. Therefore it is good time to look at the interest rate on your mortgage. A fixed mortgage may make better sense as interest rates keep on changing and the economy may come out of the downturn.

 Your Mortgage

Private funders that offer mortgages have also lowered their interest rates keeping with the general trend. They offer flexible terms and conditions and the processing time of the mortgage is much faster as compared to banks or the “BIG 4”. Therefore it makes sense to check out the different mortgage products offered by private funders before deciding on your mortgage. A mortgage broker can be of help when applying for a mortgage. They deal with many providers and know about the best products available in the market. They also help with document processing and submitting the application.

 

Don’t be scared to borrow early in your life

 

You should ideally start paying your mortgage off early in your life. If your mortgage repayment starts within the first few years of your professional life you can pay back the mortgage sooner and then think about a second mortgage. Depending upon your financial situation you can even think of taking a third mortgage. The pre-payment terms and conditions should be clearly outlined in the mortgage documents. Every mortgage provider has a prepayment clause but the charges can vary. Mortgages can be obtained by most working professionals whether they are salaried, self employed or into business. Before applying for your mortgage it is important to check your credit history and ensure that all other documents are in place.

 

Unlike banks, private funds are more flexible in their credit history verification. Therefore if a mortgage borrower thinks that they do not have a great credit history, they should approach private funders for their mortgage requirement. Apart from being flexible in their terms and conditions they also have very quick processing time. Once the documents are submitted your mortgage can be processed within 24 hours. The funds will be available in the borrower’s bank account within 48 hours. A ‘Wait and Watch’ policy is not a great idea for delaying your mortgage application. It is wise to pick up your phone and start talking to a mortgage lender.