Money make the world go round

People say that money doesn't make you happy, but from experience, I can tell you that not having enough money is not fun either. Sometimes getting a quick loan can be just the trick to get you back on your feet. This site is all about how to get loans and financing for small amounts of money and a short time when you just need a little more cash to tide you over and pay some bills. I like to be able to feel confident that all of my bills are paid and be able to put food in the fridge, without putting my family's finances in crisis.

Top Tips When Taking Home Loans


Saving to buy a home can be a daunting task. As such, most people opt to purchase homes through mortgages. Below is a comprehensive guide on the various considerations you should make when taking a home loan. 

Manage Your Credit Appetite

Can you repay the mortgage? Evaluate your current financial situation to know if you can repay the mortgage. Mortgages take years to repay. Therefore, think about your future needs. For instance, will you be in a position to repay the mortgage and provide for your family in the next five years? Do not fall into the trap of taking on too much debt. Otherwise, you could have trouble repaying the loan. 

Choose a Suitable Loan

There are different kinds of home loans. These include:

  • Variable-rate interest loans. The interest rates on these loans move in line with the cash rates set by the reserve bank. A split home loan is divided into fixed and variable rates.
  • Bridging finance loans are ideal for homeowners that would want to purchase a new home before selling their old house.
  • Shared equity home loans have low-interest rates. In exchange, the lender has a stake in the property's appreciation.
  • Construction home loans are perfect for people that would want to build homes. The money is released in phases to the home builder.
  • A honeymoon loan has low-interest rates for the first 6-12 months. The interest rates will revert to normal after this period.

Work With a Reputable Lender

As a rule of thumb, you should only work with a reputable lender. Check finance blogs and social media to determine the lender's reputation. You would be interested in the lender's level of customer support. For instance, can you restructure the loan if you have trouble repaying it? What penalties will you incur if you are late to make repayments? What extra charges will you incur? For example, some lenders will impose origination, application and appraisal fees.

Consider Hiring a Mortgage Broker

A mortgage broker can significantly ease the mortgage application process. He or she will advise on the various types of home loans you might qualify for. Independent mortgage brokers have long-term relationships with different lenders on the market, and as such, they can successfully apply for mortgages and negotiate interest rates on your behalf.

Your choice of mortgage broker should be experienced and licenced to operate in your state. Brokers affiliated with professional associations may provide high-quality services.

People that intend to take home loans should manage their credit appetite, choose a suitable loan and work with a reputable lender and experienced mortgage broker. 


25 November 2019