http://www.wizard.com.au/wizard_wome...228&ref=wwn004
Uncovering the myths about mortgages and buying your dream home
In a recent survey of Wizard's 200 branches across Australia, we discovered some of the most common myths encountered by first home buyers when looking for a home loan. Here they are:
- A bad credit history doesn't matter if you eventually pay it off. Not true – a patchy credit history can haunt you – even if it is very old or just a one off small amount, so keep on top of your bills.
- Assets are the same as income. What really counts when applying for home finance is your capacity to repay the loan through a regular income, not how many assets you may have.
- It's the credit card balance, not the limit that counts. Another myth – in reality, the less available credit you have – such as credit cards and other loans, the better.
- You need a 20 per cent deposit to get started. These days, financially stable first home borrowers can take advantage of a growing number of loans that allow you to borrow up to 100 per cent of the property value. However, you will still be required to pay for legal fees, Lender's Mortgage Insurance, purchase and mortgage duty.
- A fixed rate is always safer than a variable rate. Every home loan is different – so too are your home loan needs. What's important to remember is that fixed rates are calculated by the capital markets over the period you sign–on for, whether that be for three, five, or seven years. If variable interest rates go down during this fixed period, you could end up paying a higher interest rate than compared to the standard variable rate.
- Personal debts can be rolled into a new home loan. Often, you will need to wait until the property builds some equity before you can refinance and roll all your additional debts into the home loan.
- Minimum, monthly repayments are best. Not true – paying as much above the minimum repayment as you can is the fastest way to pay off your home loan and can save you thousands of dollars of interest.
this is kinda aimed towards australians btw![]()



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