Finally getting your own place can be a fresh and exciting start, but this can be cut short due to a lack of finances. Jumping from a renter to being a homeowner is a big step to take. Bond loans are created for this reason to help you effectively bridge the gap. It can also help you to be prepared financially when the right place shows up. These are the few ways in which a bond loan can work for you.
1. Take care of your expenses without the financial headache
The younger you are the most likely it is that you will rent out a place and a sizeable amount of your salary will go to covering your rent. However, when it comes to taking care of your rental deposit, rent, the purchasing of white goods, and furniture it can be a bit overwhelming. A bond loan can help Aussies ease the strain of such expenses without getting into a debt spiral.
2. It can help you secure your dream house
Finding a rental that ticks all your boxes and comes with an affordable rent can be a hard find. But once you have found your hidden gem of a place you will want to secure it with no delay. Getting a pre-approved bond loan is one way to secure your spot. Bond loans can offer you up to 4 weeks of rent so that you don’t have to break the bank to get it. Getting pre-approved for a personal loan will also help you negotiate with confidence and know what is within your financial reach.
3. Spread out your costs
The average Australian renter is likely to move 3 times in a period of 5 years. Your reason for changing locations could be for various reasons, but this will come with costs that can put a strain on your finances especially if there are unexpected costs. A bond loan is a handy way to be financially prepared and if you have checked the features of the loan you will find that it comes with flexible repayment plans that can help you spread out costs.
4. It doesn’t require security
When you are in a tight squeeze to get finances that will help you secure your dream of getting your own place it can be even trickier when you are required to provide security against the loan. Most personal loans are unsecured which means that you do not have to use an asset such as your car or a house to secure the loan. However, keep in mind that the interest rate for unsecured loans is slightly higher because of the risk your lender will be taking on when borrowing you the loan.
5. You can get access to a loan that understands you
Personal loans are personal, which means that they are tailored to suit your financial circumstances so that you are not burdened with something that is out of your reach and could push you into the red.
But it is still important that you compare your options to find an option that is best for you. Checking features such as the loans fees will help you know whether it will be affordable for you in the long run. The interest rate will also play a significant role in how you repay the loan. You should check whether the interest rate is fixed or set at a variable rate, or if the rate is offered as an introductory rate.
With a wide range of bond loans that are available to you, it is important to check if the loan comes with repayment flexibility such as whether you will be able to select a weekly, fortnightly or monthly repayment that matches your finances. Finding a loan that offers you breathing room to make additional payments without being slapped with a penalty can help you ease your way into your new place without any stress.