"Should I see a financial adviser before I get a home loan?"
- Stanley in Adelaide, South Australia
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This response will probably be no surprise coming from a financial adviser, but you should see a financial adviser before making ANY decision that involves a financial transaction.
This is all the more important when it involves a major financial decision and there are few MORE major that any of us undertake in our lives than applying for a home loan.
The list of factors warranting consideration before taking out a home loan is almost endless:
- Which lender(s) should I approach?
- Am I better off using a mortgage broker?
- What interest rate should I be paying?
- Should I take an interest-only loan or pay principal and interest?
- Should I take a fixed or variable loan or a combination?
- How quickly can/should I pay the loan back?
- What are the benefits of an offset account?
- What are the tax implications?
- What else could I do with my money?
- Am I better off paying down debt or putting money in super?
- What if I have other debts?
- Can I get insurance to cover the loan and my repayment ability?
- How much can I borrow?
- How can I check if I will actually be granted a loan?
- How do I know if I’m getting a good deal?
The longer you look at this list of questions, the more questions will occur to you. Suffice to say, however, that this list should be compelling enough reason to seek professional advice.
Of course, good personalised advice is not free and many financial advice businesses will offer an initial meeting at no cost. Irrespective of the cost, you will invariably find that the investment of your time (and money) is beneficial in that you may come away with answers to at least some of these questions, or at least, have a better understanding of what answers you need before proceeding with a loan application.
And, who knows, you may just decide, as have many astute Australians, that having access to quality financial advice and guidance, either on an “as needs” basis, or under an ongoing service arrangement, is in your best interests.
After all, you don’t know what you don’t know!
While the Adviser Ratings Website facilitates the question and answer functionality, all such communications are between users and authorised financial advisers, of which Adviser Ratings has no affiliation. Adviser Ratings is not the advice provider and does not provide financial product advice and only provides information that is general in nature.