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Check the fine print on your home loan

10 Apr 14

Buying a property is an exciting time and with so many aspects of the purchase to think about, it can be all too easy to forget about the finer details.

Before signing on the dotted line with your chosen home loan provider, make sure you take some time to take a closer look at the small print. While this might seem like a tedious task, it could save you facing some nasty surprises further down the line!

Here are some clauses to keep an eye out for to ensure you are happy with your decision and understand the real estate law surrounding your transaction.

Check the credit contract

No matter what financial agreement you are signing up for, there will be some kind of credit contract involved. Whether you're applying for a credit card or a home loan, these details often remain the same on this type of document.

As a result, it is recommended that you double check the name of the business lending you the money for the purchase of your property, as well as the details of the loan.

All credit providers are required under Australian law to be licensed - you can check your provider is by getting in touch with the Australian Securities and Investments Commission either online or by phone.

Its professional register will assure you that your home loan provider has all the necessary credentials to lend you the money.

There should also be information on how interest will be calculated and charged - this may impact on your home loan repayments, so make sure you are fully aware of what you will be expected to pay.

Lenders are also required to provide details on what would happen should you find yourself unable to meet the payment schedule. You might face additional fees or face a higher interest rate should this situation arise.