You can be the most educated person in the world and still find the world of loans confusing. In fact, stepping into the world of mortgages isn’t really all that different to heading back to school. Here are just a few ways that taking out a home loan is just like earning that goatskin all over again.
It’s a learning curve
Just like taking that first class at university, when you take out your initial home loan, there is plenty to learn. While you might go in thinking that you know everything, you’ll quite swiftly learn that there’s a lot more to it than meets the eye. Many young adults end up being a “boomerang” kid: they moved out of the family home for a while but ended up right back where they came from.
A metastudy on the phenomenon published by Maturitas found that one of the main reasons for this occurring is financial difficulty. You can combat this by making sure you get the right loan from the right lender by talking to the right mortgage broker.
Knowledge is power
Knowledge is power, whether you’re taking on debt or studying for an exam.
Nobody is born knowing how the property market works. Everyone who takes out their first home loan is starting at the same point, just like everyone starts off the same at university. The differences become apparent in the amount of work you put in and how much you study.
Home loans are much the same. You don’t want to be like the majority of under-35’s reported by the Australian Securities and Investments Commission who don’t even try to stay informed about money matters. Knowledge is power, whether you’re taking on debt or studying for an exam.
A financial boost
A study from the National Centre for Social and Economic Modelling shows that Australians with a postgraduate degree will earn almost double what someone who completed the minimum earns over the course of their lives.
In much the same way, ensuring that you get a home with growth potential at the right time in the right area will set you up to access more equity down the line. Having the best-fitting repayments as well as the right loan features are just as important for your financial wellbeing as the additional earnings from finishing a university degree.
If you’re having trouble finding the right loan or figuring out your borrowing power, it might be time to visit the professor of Loans 101 – your local finance broker. Contact the team at Premium Mortgage Group, we promise not to fail you!