Protect Yourself From Home Loan Traps

While many of Australians per year search for the perfect home loan, many do not find it, but instead fall into one of the many traps that are just waiting for the unwary. Here are a few warning signs that could mean you are on the brink of a trap.

1. Signing a contract without understanding it.
2. Letting yourself be pressured into signing a contract. Wait and read it all before you sign anything. If you don't understand it, take it to a solicitor.
3. Accepting a loan from a telephone or door-to-door salesman. Most are sharks. Find a home loan by conducting your own research.
4. Signing a blank form for a home loan. This is asking for trouble, just like signing a blank cheque.
5. Not asking for a fee schedule. All loan brokers have a duty to tell you what their fees are before you sign anything.
6. Choosing a mortgage broker at random.
7. Not scrutinising the monthly repayments to see if you can afford them. Don't depend on your mortgage broker to tell you.
8. Not bothering to educate yourself about all things pertaining to home loans.
9. Accepting advice from anyone that is not a professional.
10. Not doing something about it if you feel you've been treated unfairly.


Remembering these few points will help to keep you out of trouble, so it's well worth the effort.

By: Melanie

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Remember that you'll need to note down the loan interest rate on your fixed rate home loan to ensure that you're paying the right about monthly. A little bit of dilligence will pay off in the long run.