How a home loan is a lot like a new car!

Buying a home is a big deal and if you're a first home buyer you may well feel a like a bit of a novice when it comes to home finance, even if you've already made other big purchases before – like a car, for instance.

Yet despite the likely mark up in price, there is no reason why the same skills you put to use buying a new vehicle can't translate to finding the right home loan.

A home loan is a vehicle

Question: What does a car do? Answer: It gets you from A to B.

Now, let's think about the property buying journey. Your destination is you, standing in the doorway of your new home with the key in your hand, about to cross the threshold as a home owner for the first time.

That's your B. So how do you get there from here (A)? Why, with a home loan of course!

Choose your model

There are many makes and models of home loan to choose from, so you can get one that fits your required specifications.

Whether you require the grunt of property investment loans or the reliability and fuel economy of self employed home loans, pick one that is right for you!

Try before you buy

Just as you wouldn't hand over your hard earned money for a car without going for a test drive first, the same goes for a home loan.

Before you sign anything it's important to know that you'll be able to comfortably afford home loan repayments, and you can do that by using a mortgage calculator.

One key difference

Of course there is one thing that we must admit is different.

When you get a new car you are taking on an asset that, no matter how much it is worth at the time of purchase, is likely to be worth less with every year.

By contrast, as you pay off your home loan, you'll be building your ownership stake in a property with a value likely to increase as the years go by.

Now that's a high performance asset!