Choosing to buy a home is one of the most important decisions you will ever make. There is so much you need to think about before you even buy your home such as how are you going to pay for it? The most popular way to pay for a home at the minute is by getting a home loan. Before deciding whether a home loan is the right choice for you take a look at the advantages and disadvantages of home loans.
- Being able to live independently and by your own lifestyle.
- When you take out a loan you are able to pay that loan back in the agreed instalments so no need to worry about paying back large amounts that you can’t afford to pay.
- You are able to live in your house while paying off the loan so you don’t have to worry about the stress of paying it off quicker in order to be able to move into your house.
- Some people choose to save the cash and pay for their house all at once. Getting a loan means you don’t have to pay the full price of the house immediately with your savings so you have some money to one side for any repairs or decorating that need doing to the property can be done sooner rather than later
- High interest rates mean you could end up paying over half of what you pay for your house if you don’t get a good deal.
- If you get your loan from a bank and want to pay it off before its due date then you may get penalised for an early settlement and made to pay a fee resulting in more charges for your loan.
- If you can no longer afford to pay the agreed instalments then the seller is able to take the house off you and you will lose all the money you have already paid off on your loan.
- Houses can lose value quickly through n fault of your own and if this does happen you still have to pay the total amount that was agreed. So you could end up paying more than your house is worth.
Sometimes the advantages do put people off from getting a home loan however you need to do what is best for you!