With the RBA lowering the interest rate to an all-time low of 2.25% and the continuing rise of property prices across the country, you would be right to think that there may be no better time than now to get yourself on the property ladder. However, before you take that jump forward and take out a home loan to secure that dream home or investment property, there is something you have to consider – your own situation. In the following article, we will look at three important questions you need to ask yourself and why they are important to making a decision about whether to take out a home loan or not.
Are You Currently In Debt?
It makes sense that before you take out a home loan, which essentially would be another form of debt, you consider whether you have a reasonable handle on your current debts. A new mortgage will obviously add to your repayment obligations so it is important to ensure that you are able to cover this cost without getting into financial trouble.
Is Your Income Stable?
The state of your current financial situation is of course also very important, but it is in some ways even more important that you can look ahead and know that you will continue to have a stable income in the future. From the moment you have secured a home loan, you need to begin paying off your mortgage so you need to take a very subjective and honest look at your incomings and outgoings and your work situation and decide if your income and job are secure enough to cover everything.
Is It the Right Time For You To Have A New Property?
Regardless of whether the timing is right financially and from an investment point of view, it is important that you don’t overlook the question of whether it is actually the right time for you to invest. Rather than feeling the pressure to secure that seemingly great deal, you need to consider your emotional and physical situation as well as your economic situation and work out whether it feels right to invest or if you should wait. This may mean giving up on the investment deal of the century, but even the most profitable move, particularly one as big as buying property, is only a good move if you are willing and comfortable with it.
After you have answered the three questions above honestly and really took a good amount of time to think about the decision of whether to buy or not through, you then need to find the right home loan company for you. While it is sensible to shop around and look for the best deal you can, considering interest rates and the overall cost of the loan, you should look at 1300 Home Loan – which offers some great deals on home loans.