If you already own a home, you may think that upgrading it is a walk in the park. After all, you’ve already been there, done that.
But according to a recent report by ING, more than half of those surveyed found upgrading a home to be more stressful than buying their previous home. What was one of the largest stressors of the respondents? Not surprisingly, arranging finance.
Using a broker to manage your finances can help alleviate the stress whilst you’re looking to upgrade your home. Let’s look at how to finance a home loan with the help of a broker.
Important considerations when upgrading homes
Customers need to consider whether to sell their home or keep their previous property as an investment property.
If you sell your home you’ll have a known amount of money to use as a deposit for your new place. This takes away some of the stress as you know exactly what you can afford and how big your mortgage will be.
But if you can afford to keep your previous property you get the benefit of ongoing rental income and potential capital gain.
You also need to look at the cost of upsizing. Other than a larger home finance loan requiring larger repayments, upsizing will give you some considerable expenses. You need to calculate how much you’ll pay for:
- Stamp duty
- Legal fees
- Agent fees
- Council rates
- Maintenance
- Furniture
- Utilities set-up.
But if the value of the new property is a lot more, then upsizing now can mean a tidy profit later if you choose your home and location wisely.
How a broker can help
A finance broker can be invaluable in helping you weigh up what’s best for you and your family. They can give you all the information you need so you can make an informed decision on how to finance a home loan.
Once you’ve made a decision, a broker can ensure a smooth transition from one property to another with refinancing. Brokers do all the leg work, and because they have relationships with multiple banks, they can give you a range of options so you can compare interest rates and home finance loan products.
If you need advice they can help with selecting the right loan product for the investment, to assist you now and into the future.
The best thing about using a finance broker is that you can get quick and easy home finance loan comparisons, as well as expert advice on how to manage your finances during this stressful period.
Final Thoughts
While upgrading a home can be a stressful time, by enlisting the help of a finance broker it can become a lot easier. They will offer a helping hand arranging your finances allowing you to relax and know you’re in safe hands.