Essential Opportunities for the Right Mortgage Broker

The borrower faces a choice: take a loan at a fixed interest for the entire loan period, or for floating interest.Floating interest depends on the refinancing rate of the Central Bank. And as a rule, they are lower than fixed interest. And if the rate of the Central Bank will decrease, your mortgage rate and the amount of monthly payments will decrease. It sounds tempting.

But here the key word is “if it goes down.” Yes, the country is interested in lowering the interest rate. But this rule usually operates in the years of economic stability. Any trouble immediately pushes the key bet up. You can take the help of the mortgage broker Geelong .

This just happened in late 2014, when the Central Bank increased the rate at once by 2 times. Let and for a short while. But payments immediately grew to 20-22% per annum. You can withstand such a financial burden if the situation lasts even if half a year or a year?

Therefore, choosing the “opportunity to win at a floating rate” or “not to lose in the future” choose the second one.

The less, the better

The golden rule is: “payments on the loan should not exceed 30% of your family income.” But many have loans that consume 50% or even 70% of their total income in the hope of a bright future: they must increase their salaries, increase their posts, and find other more profitable jobs.

But as a rule, all this ends pitifully for them. Any abnormal situation can undermine their financial position. Loss of work, illness, necessary urgent repair of a car, etc., etc.

This all must be taken into account before trying to try to get mortgages with inimitable payments for several tens of years by any means.

Take More

Buying an apartment in a mortgage will be associated with additional costs. It will be necessary to make repairs, purchase furniture, household appliances, interior and much more. And all this is capable of flying into a pretty penny. Therefore, when you take out a loan, apply for the maximum possible amount. All the remaining money, after buying a property is better to spend on this business.

The advantage is that it is “cheap” money, taken at low interest rates (12-13% per annum). And if you do not have available funds for repairs, you will have to take an additional consumer loan, the cost of which is 1.5 – 2 times higher.

How it looks in practice

Let’s say you have your money in the amount of 600 thousand. The planned apartment costs 3 million rubles. The minimum initial deposit established by the bank is 10%. Accordingly, show the bank that you have 300,000, and 2,700,000 are needed as borrowed funds. The remaining 300 thousand will be spent for repairs. It is better (and more profitable) than if they made their 600 thousand as an initial payment, they would take a mortgage for 2.4 million, and then they would additionally take a consumer loan for repairs at 20-25% per annum.

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