As any past or present borrower can attest, taking out a home loan is a big decision that should never be taken lightly. Increasing your financial literacy can not only make you better with your finances in general, but also lead to smarter investments and shorter payoff times, all adding up to more money in your pocket.
The Australian Security and Investment Commission (ASIC) believes that helping Australians gain the knowledge and skills to better maintain their finances is a key priority. When the time comes to look at home loan options, the more informed about the financial system you are, the better equipped you will be to get the best deal. It may seem intimidating at first, but there are steps you can take today to improve your financial literacy.
Take advantage of online resources
There’s a wealth of information about financial literacy on the internet, and programs like ASIC’s MoneySmart offer some great insight into how to navigate the waters of borrowing and investing. There are valuable resources available to help you understand some of the more complicated ins and outs of home loans, and these can help prepare you before taking the next step of visiting your mortgage broker.
Get advice from the experts early
Peter White, chief executive of the Finance Brokers Association of Australia, sees the need for improvement in the delivery of financial literacy programs. In an interview with ASIC that was published on Australian Broker Online on October 27, White notes that “for effective financial literacy, the outcomes of learning need to be measurable. That then means it must be to the individual and not to groups as such”.
There’s only so much you can learn from researching online, so making early contact with your mortgage broker can help iron out some of the initial worries you might have. Taking the time to schedule a one-to-one consultation early can pay dividends down the line.
Be sure to shop around
As with any major decision, when considering your home loan it’s wise to survey all of the available options before settling on one offering. There are a lot of sources out there for securing financing for your new home, but an established and professional mortgage broker can help you to understand all of the possibilities, and offer expert advice on which might be right for you. Cut down on your own leg work by having a broker negotiate the home loan field for you.
You can contact Jason Tarca on 0448 418 819 for home loan advice.