Home Loan Tips for Property Investors

Please read the following tips to ensure you don’t fall into the trap that many investors do each year when looking for that perfect home loan.

1. Never sign a contract without knowing and understanding all terms of the loan. If you are unsure of anything, you should seek independent legal advice.

2. Never allow yourself to be pressured into a home loan. Reputable mortgage brokers strive to make consumers aware of and be comfortable with their home loan options.

3. Beware of door-to-door and telephone solicitations.

4. Never sign a blank form for any home loan package, and be sure to get copies of all documents bearing your signature. You should always receive a copy of your mortgage documents for yourself.

5. Request an accounting of all fees associated with the transaction. Question any fees you do not understand. All fees and home loan details should be noted in a special document summarising the finance charges. Your mortgage broker should also supply you with a copy of the contract.

6. When choosing to go through a broker, enquire about their experience and qualifications.

7. Make sure that you can afford the proposed monthly payments. Do not agree to payments that you cannot comfortably make. Remember, everyone that experiences financial hardship was approved for the home loan at some stage!

8. Educate yourself. Know the important questions to ask and your rights as a consumer.

9. Your mortgage broker is NOT qualified to give you legal, taxation or financial advice (unless they have additional qualifications). If your circumstances require specialised advice, seek it from a professional.

10. Exercise your rights!!! If you feel you have not been treated fairly, do something about it. For further information on registering a complaint visit: www.mortgagebroker.com.au/Consumer-Guides/How-do-I-make-a-complaint.htmln