Home Loans in Keysborough: Your Comprehensive Guide to Buying a Home

Understanding the Keysborough Property Market

Keysborough has become a sought-after location due to its proximity to Melbourne's CBD, ample amenities, and community-friendly atmosphere. As of 2023, median house prices in Keysborough hover around $800,000, reflecting its popularity and growth potential. When considering a home loan, it's crucial to understand the local market dynamics to make a well-informed purchase decision.

Choosing the Right Type of Home Loan

There are various home loan options available in Australia, and selecting the right one is key to your financial well-being. Some popular options include:

• Variable Rate Loans: These loans offer flexibility with interest rates that fluctuate according to market conditions. While they can lead to savings when rates are low, they also carry the risk of rate hikes.

• Fixed Rate Loans: Ideal for those who prefer stability, fixed-rate loans lock in your interest rate for a set period, typically 1-5 years. This can make budgeting easier, though you may miss out on savings if rates decrease.

• Split Loans: This option allows you to divide your mortgage between fixed and variable rates, offering a balanced approach to interest rate management.

Practical Tips for Securing a Home Loan

• Assess Your Financial Health: Before applying, evaluate your finances, including your credit score, income, and existing debts. Lenders typically prefer a credit score of 620 or higher and a debt-to-income ratio below 30%.

• Save for a Deposit: Aim for at least a 20% deposit to avoid Lenders Mortgage Insurance (LMI), which can add significant costs to your loan.

• Get Pre-Approved: Pre-approval gives you a clear idea of your borrowing capacity, helping you shop within your budget and strengthening your position as a serious buyer.

Common Mistakes to Avoid

• Ignoring Additional Costs: Beyond the purchase price, consider stamp duty, legal fees, and potential home maintenance costs.

• Overextending Financially: Borrowing to your maximum capacity can be risky. Ensure your loan is manageable within your budget, even if interest rates rise.

• Not Comparing Lenders: Different lenders offer varying rates and terms. Take the time to compare options to find the best fit for your needs.

How Esteb and Co Can Help

At Esteb and Co, our experienced mortgage brokers specialise in the Keysborough market. We offer tailored advice to help you navigate the home loan process, from selecting the right loan type to securing competitive rates. Our team is committed to making your home buying journey as smooth as possible, ensuring you find a loan that aligns with your financial goals.