Australian home loans are highly, highly prevalent in the colloquially-named Land Down Under. Homes are undoubtedly one of the most expensive purchases individuals and families will make in their entire lifetimes, exceeding that of their vehicles – at least, most vehicles – medical bills, food, water, utilities, and home improvements onto those places of residence. Australian home loans are taken out so often because people in Australia, just like people across the remainder of our beloved blue-and-green planet, typically can’t afford to buy houses with cash, instead opting to spread the cost of their financed living spaces over long periods of time.
While most people know what mortgages are, having heard the name from friends, family members, television, books, or the Internet, few people are familiar with the ins and outs, the nuances, the nitty gritty details, and even the basic functional concepts of Australian home loans. Let’s explain exactly what Australian home loans are, some interesting statistics about them, and how to sign financing agreements with terms and conditions working in your favor, not the lenders.
In 2017, Australian Home Loans at Loans.com.au cost a whopping 376,000 dollars, on average, according to statistics published by the Australian Bureau of Statistics from the researched period of June of 2017. For people who bought homes for the first times in their lives, the average loan was slightly lower, although still outrageously expensive, at $317,000, total dollar value minus that of lenders’ fees, taxes, and other amounts required to obtain any of the many Australian home loans.
Thankfully for the people of the only continent with just one country – Australia, for those who are geographically challenged – only 13% of first-time home buyers took out Australian home loans for their first home purchases. However, the average cost of these Australian home loans taken out by those who have no experience in purchasing homes, evaluating them, or otherwise preparing themselves for decades of mortgage debt for slightly more than a place to live, was $363,650. This is up significantly from 2012, for example, when the average first-time home buyers’ price was $298,608.
Aren’t those numbers exorbitantly high? There’s not any debate about that. Let’s dig into several tips for lowering the amount of money you’ll pay on home loans in the Land Down Under, applicable to literally every case of Aussies looking for houses to settle into.
Get with a financial advisor to discuss the maximum limit of home you can afford. Next, ask what financial information you should prepare to show to lenders and real estate agents. This usually includes proof of income from the past few months, bank account balances, and background checks.
Visit multiple lenders, rather than settling for the first one you visit, and discuss home loan options with them. Furthermore, visit lenders prior to shopping for homes, as a large chunk of real estate agents maintain deals with banks in agreement to send all clients interested in financing homes their way, with agents themselves earning a small chunk of money from each sale.