<p>I'm certainly no expert (and I'm hoping someone else will weigh in with something a bit more useful) but my understanding is that it's worth spending plenty of time to do your sums and investigate what's on offer from everyone - and how the different options stack up both long term and short.<br /><br />There are a few different places you can get a loan:<br />http://www.build.com.au/whats-best-place-get-home-loan<br /><br />No harm in chatting to the banks and mortage brokers separately to make the most of their advice about what you can actually afford and what they recommend - it's worth spending the time to get your head around how different loans will work because it could save you tens of thousands of dollars in the longer term.<br /><br />Partly related - I saw a thread on reddit earlier this week telling people that they could negotiate on loans and get the bank to move a bit too, but I suspect that depends on how much you matter to them in the first place...<br /><br />http://www.reddit.com/r/bestof/comments/26ytwc/something_most_people_forget_mortgages_and_loans/</p>
<p>Everyone's situation is different.</p><p>I'd go through a broker and talk to them your situation, your needs and possible future plans and they can find right product for you.</p><p>They will also have access to many other banks and non-bank lenders so can easily see which one is the right for you as compare to only going to a bank.</p><p>Hope this help.</p>
<p>I personally don't think it makes a huge difference going with a broker or direct. Just make sure you get the best possible deal that you are comfrotable with (i.e. the repayments).</p><p>A couple of things I would keep in my mind ...</p><ol><li>Can you easily convert from interest and principal to interest only (just in case)</li><li>Remember to keep talking to your banker person - sometimes if you build a good relationship with them, then you can get better interest rates.</li><li>Try not to let your mortgage rule you - its always hard in the first year, but it does become easier.</li></ol>
<p>Thanks for the replies everyone.</p><p>I must say its not eay to know how to do this stuff. I read on this site about maybe getting a mix of fixed and locked in interest rates. This seems to make sense to me, but I think that the reserve bank is going to lower interest rates again by the end of the year (according to most news stories I hear).</p><p>If I lock in a rate and then they lower the interest rates, i think I might be worse off.</p>
<p>I think that the banks are very good at making money, so they price accordingly with their best guess as to what the interest rates will do.</p><p>If the lock in rate is lower, then I suspect that the banks believe that rates will fall, and visa versa.</p><p>Don't try to beat the banks is my best advice, because in the long run I don't believe you can come out ahead.</p>
<p> </p><blockquote><p class="quote">04:06 19-06-2014 - R.Mac</p>Its really scary.</blockquote><p> </p><p>They say it's the biggest financial commitment most people ever make. Bit of fear's probably a healthy thing ;)</p>
<p>I'm certainly no expert (and I'm hoping someone else will weigh in with something a bit more useful) but my understanding is that it's worth spending plenty of time to do your sums and investigate what's on offer from everyone - and how the different options stack up both long term and short.<br /><br />There are a few different places you can get a loan:<br />http://www.build.com.au/whats-best-place-get-home-loan<br /><br />No harm in chatting to the banks and mortage brokers separately to make the most of their advice about what you can actually afford and what they recommend - it's worth spending the time to get your head around how different loans will work because it could save you tens of thousands of dollars in the longer term.<br /><br />Partly related - I saw a thread on reddit earlier this week telling people that they could negotiate on loans and get the bank to move a bit too, but I suspect that depends on how much you matter to them in the first place...<br /><br />http://www.reddit.com/r/bestof/comments/26ytwc/something_most_people_forget_mortgages_and_loans/</p>
<p>Everyone's situation is different.</p><p>I'd go through a broker and talk to them your situation, your needs and possible future plans and they can find right product for you.</p><p>They will also have access to many other banks and non-bank lenders so can easily see which one is the right for you as compare to only going to a bank.</p><p>Hope this help.</p>
<p>I personally don't think it makes a huge difference going with a broker or direct. Just make sure you get the best possible deal that you are comfrotable with (i.e. the repayments).</p><p>A couple of things I would keep in my mind ...</p><ol><li>Can you easily convert from interest and principal to interest only (just in case)</li><li>Remember to keep talking to your banker person - sometimes if you build a good relationship with them, then you can get better interest rates.</li><li>Try not to let your mortgage rule you - its always hard in the first year, but it does become easier.</li></ol>
<p>Thanks for the replies everyone.</p><p>I must say its not eay to know how to do this stuff. I read on this site about maybe getting a mix of fixed and locked in interest rates. This seems to make sense to me, but I think that the reserve bank is going to lower interest rates again by the end of the year (according to most news stories I hear).</p><p>If I lock in a rate and then they lower the interest rates, i think I might be worse off.</p>
<p>I think that the banks are very good at making money, so they price accordingly with their best guess as to what the interest rates will do.</p><p>If the lock in rate is lower, then I suspect that the banks believe that rates will fall, and visa versa.</p><p>Don't try to beat the banks is my best advice, because in the long run I don't believe you can come out ahead.</p>
<p>Thanks everyone. Still trying to work out the best way forward.</p><p>Its really scary.</p>
<p> </p><blockquote><p class="quote">04:06 19-06-2014 - R.Mac</p>Its really scary.</blockquote><p> </p><p>They say it's the biggest financial commitment most people ever make. Bit of fear's probably a healthy thing ;)</p>
<p>Its starting to make some sense to me.</p><p>I've been talking to a mortgage broker and now know how much I can spend. Now the hunt is on!</p>