What Kind of Mortgage Is the Best?
Most homebuyers believe that the best mortgage is the one that has the lowest upfront and closing fees. In addition, it provides favourable loan terms such as low home loan interest rates. In many ways, the best mortgage is the conventional version. However, it has several requirements. Homebuyers must provide a 20% deposit and three months of bank statements and payslip. Plus, it helps to have a stellar credit score.
In the 2000s, lenders saw that homebuyers started having trouble qualifying for the conventional mortgage. Therefore, they developed alternative mortgage products such as the low doc, bad credit, and family pledge options. The low doc mortgage drops the full documentation requirement. However, it raises the potential interest rate charges. First-time homebuyers who have short employment and credit histories can lean on their parents for help with the family pledge mortgage.
The gig economy has taken off in Australia. In addition, several Australians decide to own a small business. Their lack of payslips puts small business owners, gig workers, and contracts in a bind when applying for mortgages. Having a credit score closer to 500 than 700 does not deliver an ideal position. Nonetheless, a Mortgage House bad credit mortgage helps home buyers get their foot into the homeownership door.
Thus, the best mortgage product helps homebuyers become homeowners. Sometimes, the initial terms do not favour the homebuyer. However, Mortgage House provides several tools that help offset the extra charges and risk.
Understanding the Best Mortgage Conclusion
Every homebuyer can find the best mortgage product for their financial circumstances. Contact our Mortgage House loan specialists to explore your options.