A large deposit and a short repayment period may lower your interest rate. This combination can drive down the cost of borrowing dramatically, and wise old owls advise planning toward that goal. The rest of us, who live in the real world, often begin with the stark reality of a small deposit, potentially as little as 5% of purchase price.

This can be a good idea or a bad idea, depending on the rest of the plan. A mortgage broker at OH Mortgage Solutions can help you work through your options. Having begun with a basic equation, it’s time to walk through the mortgage process from getting your financial house in order to making your mortgage choice.

Three Bits of Preparation Potential Home Buyers Should Do

If you are a first time home buyer, make sure that you take advantage of the incentives that may help you maximize your deposit. The First Home Owners Grant (FHOG) is a tax-free government payment of up to $7,000 to anyone buying a first home in Australia. Continue reading →