Become a savvy home buyer
We’ve all read recent headlines about how expensive it is for first home buyers to get onto the property ladder, but many of us are still trying. In another slug for home buyers, new figures out show mortgage brokers are costing Australian home buyers nearly $2 billion a year – yet another cost they can ill afford.
Many people are getting clued onto the fact that banks and brokers aren’t necessarily the best (or only) option when it comes to getting a mortgage (or refinancing) and are taking control of their finances and shopping around – especially online.
Whilst brokers sell themselves on the ability to take the hard work and confusion out of selecting a mortgage, the reality is getting a mortgage doesn’t have to be hard work and there are a few simple things that you need to look out for to ensure you don’t get ripped off!
She said talks to first home buyer Stephanie Jacques.
Age: 24
Occupation: Social Worker
Town you live in: Sydney
Why did you decide to research you own mortgage deal?
Stephanie: I found buying my first home pretty daunting so I decided to research my own mortgage rather than be convinced into a product by a salesperson. I also think there are lots of ways to get caught out and I wanted to save as much as I could, seeing as it's a pretty huge financial commitment.
Where did you go to learn about mortgages? - i.e. interest rates, deposits, etc.
Stephanie: I looked at the Cannex website, a company that researches and rates all types of finance products. They have good information about all the different loans available, making it easier to compare loans and look at the costs involved. I also looked a couple of lender’s websites to get a feel for how much I could borrow and what the repayments would be etc. On top of that, I asked friends and family for advice who had been through this process before.
How did decide on you final mortgage choice?
Stephanie: I spent a lot of time looking at different websites, and when I first rang QuickDirect, an online home loan provider a friend had mentioned, I felt welcomed and not pressured into signing up straight away. Other companies I rang had made me feel silly for asking questions about loan rates etc., but Danny from QuickDirect was very patient and took the time to explain the whole process of getting a home loan so I was clear on everything from day one. This made me feel very comfortable and in control.
While arranging everything for my loan and right up until the settlement date, I had several calls from Danny to check how I was going, and I was always able to call or email to ask more questions. I was very happy to have only one contact person and to have his direct phone line. This meant I wasn't talking to someone different every time I called. And also the staff seem genuinely as excited as I am to be buying my first home. Many thanks again to Danny and to QuickDirect.
What do you suggest other women to look out for to avoid getting ripped off in the aggressive home loan market?
Stephanie: The first thing I would say is to sit down and make a strict budget to see what you can afford, and to overestimate all your expenses so you know you won't get caught short. That way you don't have to sacrifice everything you love (e.g. I have a shopping budget).
I think it's also important to take your time and ask all the questions you can think of. If there's something you don't understand, get someone to explain it before moving forward with anything and don't worry about how silly some questions might sound. We all have to start somewhere, and it's definitely better to have a clear picture than find surprises later! Then you'll have a good idea if the product you're looking at fits your budget.
QuickDirect is a member of the Mortgage & Finance Association of Australia and the Credit Ombudsman Service Limited. For more information visit www.quickdirect.com.au
