08/26/2016

3 home loan management tips via Game of Thrones

3 home loan management tips via Game of Thrones

Buying a new property and managing the resulting home loan can be a mountain-sized task fraught with dangers, much like taking back the Seven Kingdoms of Westeros from their unlawful king. To make sure you don’t fall short in the ensuing siege for home ownership, observe the prudent manoeuvring of Daenerys and model your plan of attack off of hers.

Do so and you will surely avoid being the slave to your fearsome Dothraki mortgage repayments, enjoying your experience as a home owner and making the most of your newly taken castle.

Get your affairs in order before embarking

Daenerys has been lurking menacingly across the Narrow Sea for years, getting her house in order before taking King’s Landing. You must treat buying your home the same and lurk in the shadows of rentals, your current home, or mum’s place, to ready yourself for the coming trials.

Speaking generally, your loan could take up to 30 years to repay, so before embarking from safe shores, you should ensure that you have a reliable income source and that you can fully trust any partners who accompany you on the journey.

Don’t overcommit

According to the Australian Bureau of Statistics, the average Australian employee earns $1,145 a week, and as of December 2015 the mean castle price in Australia is over $600,000. Assuming a relatively low interest rate of 4 per cent, a 20 per cent deposit and a repayment term of 25 years, this would mean repayments $584.25 per week – which is over half of the average Aussie worker’s pay cheque.

On that note, the Victoria government’s MoneyHelp states that if you default on a loan payment, and are issued a notice by the Iron Bank, they can repossess your home within 30 days. Don’t overestimate the resources at your disposal and overcommit, to avoid the unfortunate fate of Stannis Baratheon.

Seek counsel from trusted advisors

The Mother of Dragons and those buying a home both have a challenging task ahead of them. Despite the depth of the Narrow Sea and the increasing price of homes in Australia, it’s possible to succeed with the right knowledge and experienced people advising you.

In order to ensure your plan of attack, let us, your local mortgage broker, be the Tyrion to your Daenerys, and help ensure certain home ownership victory.