Even though some heat has come out of the property market over the past few months, mortgage activity remains high.
Borrowers took out $30.38 billion of home loans in August, which was 1.0% higher than the month before and 23.0% higher than the year before, according to the Australian Bureau of Statistics.
Owner-occupiers signed up for $18.67 billion of loans, which was 0.7% higher in monthly terms and 16.8% in annual terms.
Investors borrowed $11.71 billion – up 1.4% on the month and 34.2% on the year.
If you’re thinking about taking out a home loan, you’ll obviously focus on the interest rate. But there are also a range of other factors to consider, such as:
Fees: A mortgage with a higher interest rate and lower fees may work out cheaper over the life of the loan than one with a lower rate and higher fees.
Flexibility: Features like an offset account, redraw facility and extra repayments can make it easier (and cheaper) to manage your loan.
Loan term: Most people opt for 30 years, but you might want to choose a shorter term: while this will mean higher monthly repayments, it will reduce your life-of-loan interest payments.
Contact us to discuss your situation and home ownership goals.
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