The great Australian dream of owning your own home is alive and well. Australian’s are digging deep into their pockets to finance their home loans and with the current investment market booming, you have to be ahead of the game to get a look in.
What is the average amount Australians are borrowing?
The average home loan in Australia was $300,000 in August 2013, up from $265,000 in April 2000.
What are the major Australian home loan lenders?
- Major Banks
- Building Societies
- Credit Unions
Each of these offer competitive rates on mortgages for your potential home, but by comparing rates and fees online, you can find out which ones are the best for your needs.
How are interest rates set?
In Australia, the Reserve Bank sets the benchmark cash rate for the lenders to follow, so cash rate trends usually give an indication of future mortgage interest rates. For example, if the cash rate is expected to increase, many borrowers will opt to fix their loan rates so that they can enjoy lower repayments for longer.
What home buying mistakes are Australians making?
- Unprepared finances
- Overextending your finances
- Overlooking the extra costs
- No carrying out proper building and pest inspections
- Buying a house riddled with problems
- Choosing the wrong home loans
Australians can put themselves at risk by not conducting the proper research before purchasing a new home. It pays to be prepared, study the market and look around for a home loan most suited to you. Once you’ve put in the leg work you can sit back, feet up, and enjoy your new home.