Avoiding the bad home loan
Article by Mozo
While Aussies are enjoying more choice when it comes to taking out a home loan, they shouldn’t be blase about researching the best deal.
Consumer watchdog Choice has suggested that while many home loans sellers are battling to make buying a house more successful, some deals out there come with catches.
Money expert Steven Anderson urged buyers to steer clear of 100 per cent loans to avoid the risk of running into problems in the future.
In addition, new 40-year loans could end up costing more in the long run, although he said that these could still give a good deal for those buyers who are able to up their monthly payments to bring the length of their mortgage down.
He pointed out that the average length of a home loan arrangement in Australia was seven years.
Meanwhile, NAB rep Ann-Marie Chamberlain, urged buyers: “We encourage all our customers to weigh up the pros and cons of all types of loans before deciding which one’s best for them.”
In other money advice, Choice has also urged consumers to make sure they arrange their credit card payments so they always come out when there are sufficient amounts in the bank to cover it to avoid the risk of defaulting and damaging credit ratings.