If you are planning to purchase a property in Sydney, then a home loan can likely be a huge help in bringing you closer to your goals.
In this article, we will give an overview of a few important things to consider when attempting to find your first home loan to buy a property in Sydney.
Due to the high cost of purchasing property in general, it will most likely be very important for you to consider every way that you can compare potential home loans in order to minimise extra costs, and to give yourself the flexibility to make your finances best work for you as you pay down your mortgage. Some important variables to compare between loans are:
The interest rate on your loan determines how much you will need to pay in addition to the principal repayments on your loan and associated fees. The lower the interest rate you are offered, the less you will end up paying in the long term, meaning that typically it is in your best interest to find a loan with a lower rate.
Some loans offer additional features which might be the difference for you between choosing one lender over another. Examples of some features which you might choose to leverage are offset accounts, interest only periods, and the ability to make additional payments towards your principal in advance.
Fixed or variable interest rates:
Loans that offer a fixed interest rate allow you to ‘lock in’ a low interest rate for a period usually of 2-3 years. It can be beneficial to opt for a fixed rate loan if you predict that interest rates are likely to climb in the near term, as this means you will continue to pay a lower interest rate in a high interest rate environment for the duration of this period. On the other hand, if you believe interest rates are likely to drop, then you might wish to opt for a variable rate, and pay interest in line with fluctuations of the day.
Home loans in Sydney are as easy to acquire as they are in any other major city around Australia or the world. As Australia’s financial centre, Sydney is home to the headquarters of almost every major bank operating in the country, ranging from Australian banks such as Westpac, Commonwealth Bank and ANZ, to international banks such as HSBC and Citibank.
For those who wish to engage a truly local business, The Bank of Sydney is an option that can be considered, as well a multitude of other smaller independent lenders.
Online comparison tools such as Savvy’s can make the decision-making process simple by offering an fast and easy way to compare home loan options between a variety of lenders, with results tailored to your specific needs.