Finding the Right Property For You

An important part of securing the right home loan for your lifestyle, is finding a suitable home. Auckland mortgage broker John Schumacher gives his top tips below for finding the right property:

1. Organise a home loan pre-approval
An official written home loan pre-approval will give you an accurate guide as to exactly how much you can borrow, which means you can negotiate or bid at auction with confidence.

2. Consider your finances
There are serious financial considerations to take into account before committing to a home loan. Speak to a mortgage broker to ensure that you are buying within your limits, taking into account fees, charges and associated costs.

3. Budget in an interest rate rise
When determining how much you can borrow, you’ll need to take into account the possibility that interest rates may increase. The general rule is to allow for an increase of around two to three per cent. The past few years have shown that a larger margin, around five per cent, may be an even safer option.

4. Consider benefits of the property location
Is it in a desirable area? Is it close to schools, roads, shops, public transport, etc? Are there any planned developments in the area? What are the neighbours like?

If you would like any further information about finding the right property for you, talk to your local mortgage broker.

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