Australia and New Zealand Bank (ANZ) offer competitive
home loans, just like all the other major Australian banks. And just like
the other lending institiutions, buyers have to be aware of all the costs
and pitfalls involved in securing a home loan from the ANZ Bank.
What to consider when
securing a home loan from the ANZ.
Here are some useful tips on what to consider before applying for
an ANZ home loan.
If you need money to pay bills or make home improvements, and think
the answer is in refinancing, a second mortgage, or a home equity
loan, consider your options carefully. If you can't make the required
payments, you could lose your home as well as the equity you've
built up. That's why it's important not to let anyone talk you into
using your home to borrow money you may not be able to afford to
pay back.
Contact several lenders - including banks, savings and loans and
mortgage companies. Ask each lender about the best loan you would
qualify for then compare the following: |
|
The annual percentage rate (APR):
The APR is the single most important thing to compare when you shop for
a loan. It takes into account not only the interest rate, mortgage broker
fees, and certain other credit charges the lender requires the borrower
to pay, expressed as a yearly rate.
The term of an ANZ home loan:
How many years will you make payments on the loan? If you're getting a
home equity loan that consolidates credit card debt and other shorter-term
loans, remember that the new loan may require you to make payments for
a longer time.
The monthly payment:
What's the amount? Will it stay the same or change?
ANZ prepayment penalties:
Prepayment penalties are extra fees that may be due if you pay off the
loan early by refinancing or selling your home.
Whether the interest rate for an ANZ home loan will increase if you
default.
An increased interest rate provision says that if you miss a payment or
pay late, you may have to pay a higher interest rate for the rest of the
loan term.
The best piece of advice would be to ensure that you can afford the loan.
Figure out whether your monthly income is enough to cover each monthly
payment, in addition to your other monthly bills and expenses. If it isn't,
do not take out a loan.
