elk financier’s strong relationships with the majority of major lenders and product providers ensure we remain truly independent. elk financier is a privately owned and operated lending, finance and banking intermediary company that commenced operations built on a foundation of experience, knowledge, expertise, motivation, and professionalism.
elk financier has built its foundation on upholding the legal and ethical requirements of the finance and mortgage industry, as well as ensuring a high level of professionalism.
Budgeting, the first step
Home or property is just another asset class that forms a part of your overall wealth, and buying a house should be treated as an asset class that fits into your overall wealth planning. So, when the time is right to purchase a home, the first thing that needs to be done is to check how it fits into your overall financial plan.
This first step before you buy a house is to develop a budget. Doing so gives you a better idea on how the new house will affect your total expenses. When budgeting for your purchase, if you are taking a loan, you will have to consider payments such as your own contribution, the fees charged by all the financial institutions, the amount required to be paid up front, broker’s fees, new furniture etc. A home is a long-term purchase and it should fulfil your requirement for the next 7-8 years. So do not cut corners.
Use housing loan to increase your liquidity
Mortgage, if used wisely, can be a great financial tool. If you can make more money through investments than what the mortgage costs, it makes perfect sense to keep the mortgage instead. Additionally, it will increase your liquidity, as you will have more financial assets.
Although it sounds logical to pay more to save your interest payments, it’s not always the best move. You need to consider other issues, such as your need for cash reserves and the yield of your investments. Home equity loans are an attractive borrowing tool for many people.