Top 10 Home Loan Protection Tips – Are you protecting yourself financially?
Reading the following tips will ensure you don’t fall into the trap that many Australians do each year when looking for a great home loan.
Educate yourself. We have endeavored to provide all necessary information for you to have a basic understanding of the mortgage industry, products and your rights as a consumer – so please take some time to read it.
Search for a mortgage broker that you are comfortable with. Have a look at their experience and qualifications. All Mortgage Brokers listed on this site are members of the MFAA or FBAA and need to be licensed with ASIC.
Beware of door-to-door and telephone salespeople because you really don’t know who they are and if they are qualified.
Your broker is NOT qualified to give you legal, taxation or financial advice (unless they have additional qualifications). If your circumstances require specialised advice, seek it from a professional in that particular field.
Make sure that you can afford the proposed monthly payments because you can get yourself into a lot of trouble. Do not agree to payments that you cannot comfortably make. Remember, everyone that goes bankrupt was approved for the home loan at some stage!
Never allow yourself to be pressured into a home loan. Reputable mortgage brokers strive to make consumers aware of and be comfortable with their home loan options.
Request an accounting of all fees associated with the transaction. So, do yourself a favour and question any fees you do not understand. All fees and home loan details should be noted in the Finance Broking Contract (if applicable). Your mortgage broker should supply you with a copy of the contract.
Never sign a blank application form for any home loan and be sure to get copies of all documents bearing your signature. You should always receive a copy of your mortgage documents for yourself so you can keep track of things.
Never sign any contract without knowing and understanding all terms of the loan. If you are unsure of anything, you should seek independent legal advice.
Exercise your rights!!!
If you feel you have not been treated fairly don’t worry because you can do something about it because you can contact ASIC, the MFAA or FBAA. They will all have information on their websites to help you if you feel you need to make a complaint.
Leave positive comments for your broker if they have provided a good service and tell us if they haven’t because we can follow it up. Top 10 Home Loan Protection Tips