Guide to Australian Home Loans

Australian Home Loans, Their Prevalence, And How To Say Goodbye To Bad Term Agreements And Clauses

Of the 195 countries spread across six continents – it’s not sensical to include Antartica, as polar bears and penguins don’t really count as people – US News ranks Australia as the eighth-best in its Best Countries Overall ranking of 2016. Despite being ranked high in contributing to the world in charitable giving, having top-notch healthcare systems and overall healthiness as a country, and boasting many international publications, Australia is largely behind in one aspect of living – consumer debt.

Earlier this year, in June of 2017, the entirety of Australia was ranked as – not first, thank goodness (this sentiment’s loaded with sarcasm) – having the 2nd-highest [debt]:[gross domestic product ratio] in the world. The total amount of consumer debt per household in Australia is a whopping quarter of a million dollars – or $190,000 in United States Dollars – for each and every household in the land down under.

It’s also been calculated that of the average household’s income in Australian Dollars of $80,000, those households have a mean mean – you read that right – of $141,600 in total outstanding consumer debt. As such, it’s virtually impossible for Australians to pay back their debts without going absolutely bonkers. Just like most countries’ largest components of consumer debt, 56.3% of Aussies’ outstanding balances come in the form of Australian home loans at Loans.com.au.

With relatively low incomes compared to the cost of homes, they’re forced to take out Australian home loans. Owning houses outright, or at least having unfettered access to those that are secured by Australian home loans, is part of most people’s dreams in life.

As you can probably tell, even prior to looking at statistics, Australian home loans are quite expensive, with the average being $376,200 of obligations as of June 2017. First-time buyers, although being more conservative in seeking out Australian home loans, are still bogged down with signifiant levels of debt, totaling an average of $317,400 in that same month.

Seeing as Australian home loans are so darn expensive, it’s important for Aussie consumers to learn about strategies for shopping for Australian home loans. Fortunately for these hard-working, debt-addled citizens, here are several tips for keeping mortgage balances to a somewhat-respectable low.

Although it might seem overly simple, prospective homeowners should shop around multiple neighborhoods, with several real estate agents, and spend a collectively long period of time at financiers’ establishments in negotiating with their representatives. These three are effective means of securing affordable Australian home loans.

Down payments aren’t necessary, despite what most people think. Searching for a mortgage opportunity that allows minimal, sometimes even nonexistent down payments, is a potent way of keeping costs low.

For those that already have Australian home loans, consider refinancing. If you’ve boosted your credit score since you took out your first mortgage, it’s undoubtedly wise to refinance into a shorter-term mortgage.

Drop home insurance if at all possible. The vast majority of homes won’t experience expensive emergencies, making insurance just another burden on your already-high consumer debt payments.

Australian Home Loans

Australian Home Loans

One of the biggest investments that anyone can make is in a home. Over time, a home should increase in value and improve a person’s financial position. Getting approval for home financing is a long and difficult process. With all of the hurdles to jump through, many people struggle to find an Australian home loan that fits their needs.

Working with a quality company that has a great customer service team is an important part of having success. There are many Australian home loan companies that only care about selling customers on a home loan that they may or may not need.

Choosing a Bank

An Australian home loan is not easy to get approval for. Working with a bank that is focused on customer service is a great first step in this process. Conducting research online is now easier than ever. Borrowers should look at the online ratings of various banks in their area before deciding on a company to use.

A bank should be able to help you get approval for a Home Loans by Loans.com.au that you need. Buying a house is a long process, and a quality bank is a great way to make this process easier on everyone involved.

Interest Rates

Interest rates are lower than they have been in many years. This is a great financial reason to buy a home. However, some borrowers may be able to get rates even lower than what they are today.

If you have a good financial track record, getting a lower rate is fairly easy. Banks want to lend money to people with a high credit score because they have a track record of paying their debt on time. With all of the variables to consider in buying a home, make sure to ask about different interest rate options on loans.

How Much to Borrow

Some people believe that buying a huge house is a great financial investment. Although the home may increase in value over time, a large house will have higher expenses as well.

It is a good idea to throughly look at your personal finances before applying for an Australian home loan. There are many people who are surprised to learn that they do not qualify for as large of a loan as they need. Looking for a new home is a long process. Some people let their emotions get the best of them when looking for the perfect home. It is always better to know how much you can borrow before you start looking at homes.

Next Steps

Buying a home is a fun process for many people. There are many borrowers who are looking at Australian home loan options in their area. Working with a bank that has a good customer service team will go a long way in making this process easier. The more research you do in the beginning, the higher the chances of a smooth lending process.

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Simple Steps Aussies Can Take for Home Loans

Simple Steps Aussies Can Take To Improve Offers On Australian Home Loans

Home ownership includes both truly owning a home with no debt, lien, or claims against it, as well as paying monthly installments towards mortgages or Australian home loans. Although it’s acceptable for prospective homeowners to refer to “owning a home” as having a 30-year mortgage or better against their home, backed with collateral in the form of everything they own, it’s simply not worth it in most cases.

In 2016, only 31% of Australian citizens truly owned their places of living, rather than renting or owing any money towards debt collectors on Australian home loans. The proportion of Aussies owning their homes have undoubtedly decreased over the past few years, as more than 32% of Australian residents actually owned their homes, compared to in excess of forty percent back in the early 1990s. With so many Australian home loans figuratively footing through their air so heavily, it’s difficult to even breathe without choking on the proverbial congregation of them throughout the Land Down Under. As Australian home loans are so darn popular, it’s important for everybody to understand the most effective ways of lowering their potential payments each month, knocking down the interest rate or APR, and securing short payback terms to lower the total amount of money spent on Australian home loans. Find out more here https://www.loans.com.au/home-loans

Raise Your Credit Score

Providers of Australian home loans aren’t crazy about forking over hundreds of thousands of dollars – read that over again to drill the point home – to each and every individual that receives Australian home loans. As such, they want to make sure their clients have high probabilities of paying them back, on time and in full. The most accurate, affordable, and seamless way of doing this is by checking clients’ credit reports, featuring the often-mentioned, usually-misunderstood credit score. Below are a few ways to raise your credit score.

  • Place all bills on automated payments, as long as your checking account has enough cash to support them without over drafting – which shouldn’t be a problem, if you’re planning on purchasing the most expensive consumer necessity of them all!
  • Bring all credit card balances to 0 as soon as possible.
  • Keep one card open and use it every month for bills, also paying at least minimum payments each month. Be careful to keep the balance around 30% of total balance allowed.

Be Prepared In Interviews

As mentioned earlier, because lenders are so concerned about the likelihoods of their clients paying Australian home loans balances back, every potential lessee should fully prepare themselves for interviews. Print out proof of income, bank balances, and be prepared to explain any negative credit marks.

Go To Banks With Low Fees

Don’t be afraid to shop around multiple financial institutions and discuss how much their fees are. Every financier charges money outside of interest in the form of lender’s fees. Lower these fees by obtaining written estimates from lending banks, then utilize those in negotiations with other banks.