Understanding financial jargon could help home loans customers

Wednesday 14 October 2009

Article by Mozo

When it comes to looking for low interest home loans, people should make an effort to understand the terminology to make sure they get the best deal.

Anthony Keane, writing for News Limited, suggested people should analyse property statistics properly, since they are not always clear.

He drew on the advice of Investment Adviser director Will Chapman, who said: "If you make a large financial decision such as buying a property based on limited data, the wrong decision can be made."

Potential buyers should be sure to know what factors can affect median house values – the middle sale in any group, so the seventh in 13 sales.

For example, a property may sell at a rate cheaper than expected because it had been sold to the previous owner’s children.

Similarly, inner-city and central business districts have large variations on values, but suburb prices should be relatively standard.

Finally, Mr Chapman said when it comes to size, larger properties do not always mean higher prices.

Home loans customers bought fewer houses in August, according to recent figures from the Australian Bureau of Statistics, with a 0.6 per cent seasonally adjusted dip.

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