Insurance

Lending and Mortgages For Units

If you dream of owning your own home or unit, it is imperative that you identify the sources for the finance for buying the house or unit. You might have been saving for years to accumulate for fulfilling this dream, or you might want to dispose an existing asset with the intention of buying new property, or you might want to take up investment loans.

Before you even choose the property you wish to buy, you need to understand the real estate market of the place you intend to buy. A few local trends might dictate the property prices in that location, which could be completely different from the prices prevalent all over the country. Also, the prices of a newly constructed house would be different from an existing building and an agent of the locality can best know that difference.

There is a current perception in the minds of many buyers that agents only support the buyer but does not support the seller, and this perception is not always right as you are the customer of the agent, they should show their allegiance to you. Keep in mind though he does in-fact get paid by the seller so has a motivation to sell on this part, whether it is a property best suited to you or not may not be entirely "clear" to them. Buyer's brokers/agents however work directly for the buyer and are completely aligned to getting you the best deal -their reputation relies on it!

A good buyers broker/agent might also be aligned to a specialist finance company they trust and would be able to suggest you their help in finding the right bank to take a loan from, as they would know the hidden terms and conditions of every bank.

Size Of The Unit

Also when taking loans for units or loans for apartments, it is important to note that units that are too small are not funded by banks. The reason is that the insurance companies do not provide investment property insurance for units that are smaller than fifty square meters in size, excluding the common area space and the space for balconies. Having a small kitchen area is sometimes also a requirement to being able to get mortgage insurance on a lend over 80% of the property value.

Specialist mortgage brokers and finance companies know all the in's and out with unit finance and it is more than worth your time to get the right advice in this area.