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Getting the Perfect Home in Perth: Home Loans in Perth 

In today’s economic climate, getting a home is one of the biggest financial decisions one could make. It is not just something you get on impulse, but something you need to think about thoroughly. If purchasing a house up front puts your finances at riskknow that you can always rely on home loans. In a city like Perth, Australia, getting yourself a house is surely not easy. That’s why home loans in Perth are also a big thing.  

Living in a wonderful city is the dream for many Australians, but it doesn’t come cheap. You need to be able to survive the daily cost of living and property costs. You can’t always do that by using all your money in buying a house. That is why home loans can be a buyer’s best friend. They help you, slowly and surely, claim a house as your own. Home loans don’t only get you a house, but they also help you make it a home.  

Perch in Perth  

The city of Perth is known for having a sunny and beachy vibe. It is the perfect place for anyone who wants to live a laid-back life. Home to two million people, this city is always on the list of livable places in Australia.  

Perth is Western Australia’s capital and is the largest city in the state. This city is both highly urbanised and outdoorsy. For a city with lots of high-rise buildings, and sometimes not-so-perfect drivers, the air quality is pretty great here.  

Although this city can be considered a beach bum’s dreamland, it can be quite expensive to live here. No one ever said it was cheap to come to paradise. If you want to live a high-quality life, you need to brace yourself for the price. Rental costs are quite high here, that is why the idea of getting your own property is more desirable. The good news is that reasonable property costs can be easily dealt with through home loans.  

Quick Guide to Learn about Loans  

Before you can apply for a home loan, you first need to understand what they are and what you need to do to get one. A home loan, also called a mortgage, is a type of loan where the borrower uses the money to purchase a house or other type of residence. With this type of loan, the borrower lets the lender hold the title of property and can only have it back once the final payment has been given.   

Loan Lexicon  

There are certain terms you need to remember before acquiring a home loan. The first is the Principal, or the amount of money you need to make the purchase. The next is the Term, or the time the borrower has to completely repay the loan. This can be up to thirty years. You then need to know the Interest Rate of the loan. This amount is usually calculated on the outstanding balance daily and added to your account at the end of the month.  

Lastly, you need to prepare yourself for the Repayment Frequency. This is how regularly you need to pay back the lender. The frequency is usually weekly, fortnightly or monthly. By understanding these words, you won’t be having a hard time understanding the processes and conditions of a home loan. But this is just the beginning.  

Abundance of Rates  

Not all home loans are made equal. Home loan rates differ depending on the borrower’s needs and budget. Some loan rates that are suitable for you may be impractical and impossible to pay for others. So, before you get yourself a home loan, you need to be able to identify which type of loan would work best for you. Here are the three most common types of home loan you can get for new home.  

  • Adjustable-Rate Mortgages  

The rates of this type of loan change constantly. This is usually used to entice buyers with smaller budgets with the promise of an affordable introductory rate. But the rates of this loan move up or down depending on the market interest rates. This type of loan can be very pricey in the long run.   

  • Hybrid, Adjustable-Rate Mortgages  

This type of loan is the combination of the fixed-rate and adjustable-rate loans. This means that for a set time frame, the borrower will only have to pay a fixed rate and after that, the interest rate will be adjusted just like in an adjustable-rate loan. The interest rates of this type of loan are usually lower than the fixed-rate and higher than the adjustable-rate.  

If you are still having second thoughts about your budget and what kind of home loan you want to get, you can check out home loan calculators to see if there is a loan that’s fit for you.  

Bring Back the Basics: Banks or Lenders? 

Before you apply for a loan, you must first need to get with the basics. One of the first things to think about is if you are getting loan through a bank or a mortgage company. The main difference between the two is that a mortgage company has access to more loan products than banks.  

If you are a first-time buyer, you might want to save so you can provide a larger amount for the deposit. The more you pay up front, the less you have to pay over time. Western Australian First Home Owner Grant is a grant that can financially help first timers get their homes. This can be a big help to your budget. 

Perth-fect  

So, is it worth it to get a home loan in Perth? At the time this blog was written, the property cost in Perth had declined in the recent years and pricing was at an average of $440,546 dwelling value. This value is almost the same as it was ten years ago, making it more affordable compared to other state capitals.  

Still, the value of properties differs for each suburb. There are properties that cost more than the maximum loan amount offered by loan providers. This could be a problem for people looking for a place in these areas. Would it be smart to invest in a property in Perth? Well, since the declining of the Perth housing market in 2014, reports says that things will get better by 2021.   

Finding a place to call your own is always the dream. And with lenders and loan providers, this can come true. Getting a Perth home loan may be the key for you to get your home. Soon, you might even find yourself strolling along the beaches of this sunny city.

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