Cheaper Home Loans

Some borrowers tend to forget that mortgages entail other related expenses and fees and expenses that can cost an extra five to six percent of the property price. However, you must pay for these fees to avoid problems in the long run.

Some lenders charge a home loan application fee and its rate varies from loan to loan. This fee covers property title checks, legal contracts and credit checks. During promotional periods, lenders waive the application fee to attract more customers.

Other mortgage fees include an establishment fee, a property valuation fee to determine land value and improvements that can be done, a mortgage registration fee, a stamp duty fee and a lender mortgage insurance if you do not have 15% downpayment.

A borrower must also satisfy other property fees such as building inspection fees, transfer of registration fee, utility costs such as water and electricity, legal processing fees, council rates for garbage collection and other services.

Other fees that must be sustained are council rates for garbage collection and other services, body corporate fees and maintenance costs. There are some situations wherein not all of these fees are required but you must have the finances to shoulder for it.

You need not have a notebook for listing down your budget. From now on, just visit eChoice online and use the Budget Planner. Their calculator helps you allocate your finances better. And unlike the other calculators tthere, all of the fields here are variable.

This planner has six main parts. First is the income/transport tab where you can key in your salary details such as your net salary, investment income, bonuses and miscellaneous income. You may also enter your transport expenses such as maintenance fees, petrol, public transport and other expenses.

Next, the expenses tab is where you can budget your utility bills and household expenses. Key in your monthly expenses for the fields stated below to have a view of its annual cost. Also, the frequency for every field can be adjusted to a weekly, fortnightly, monthly or annual option.

The third tab is the insurance/superannuation tab wherein you can type in your expenses for the various types of insurances that you are paying for. The next tab is the loans/tax tab that lets you allocate budget for your credit card bills, home loans, taxes and other related expenses.

Meanwhile, the leisure tab lets you assign some of your salary to your miscellaneous needs such as vacation expenses, dine-outs, gifts and subscription to periodicals. On the other hand, the summary tab reflects all of the data that you entered on the five previous tabs.

Once you are done with the budgeting, you may print or save the details. You may also email the results to a friend or email us for your comments. Let it be clear though that the results that are reflected here should only be used as a guide and not as a quote or a pre-qualification for a loan.

To apply for a home loan, better consult one of eChoice’s home loan consultants right now.