If you are looking for a home loan, don’t be fooled by all the “jargon” used in the financial industry. Prepare for your home loan with a checklist of typical questions asked by borrowers employed by lenders/credit providers. This checklist is useful when you are looking for:

>> Buy your first house

>> Refinance your existing mortgage

>> Consolidate your debts

>> Upgrade or renovate your home, or

>> Invest in another property

Question – What is the purpose of the loan you are considering?

Your answer should be one of the following:

>> Buying a house to live in

>> Investment in another property

>> Renovating your home

>> Consolidation of your debts, or

>> Refinancing your existing mortgage or any other needs

Question – What type of loan repayment are you considering?

You should consider loan repayment options such as:

Interest-only repayments – you will pay only the interest on the home loan and the loan balance will not be reduced

Principal and interest – You will have to pay the interest and principal amount together. It means that your loan balance will gradually decrease.

Question – What type of interest are you considering?

You need to consider the type of interest rate in terms of:

Fixed rate home loan – With this type of home loan, your interest rate is set for a fixed period and your repayments remain the same for a fixed period, usually from one to five years, or

Variable Rate Home Loan – This type of home loan is very popular with first time home buyers who just want a loan product that is simple, housing finance company easy to manage and offers a range of features and benefits.