First, the longer the mortgage loan, the more cost-effective.
Generally, there are two loan methods: average capital and equal principal and interest. Although the average interest on funds is relatively small, the time taken up by funds is relatively short, and the pressure of early repayment is also great. Equal principal and interest, although the interest to the bank is relatively high, but the capital occupancy rate is relatively high, and the repayment pressure is also small. Therefore, it is more cost-effective to choose the repayment method of equal principal and interest. Borrowing more money can fight inflation.
Second, the interest rate of mortgage is the optimal interest rate that ordinary people can borrow.
The average person who wants to borrow money from a bank must ask for a stable job or a mortgage loan. These loan interest rates are generally higher than the mortgage interest rate, which may not be enough. Mortgage is different. As long as your credit information is ok, you can basically borrow it. The more you borrow, the better you buy. You must borrow more.
Third, the first suite only needs a down payment of 30%. We should cherish the preferential interest rate of the first suite and try our best to borrow money.
If the first house is used in more than 200,000 houses, it is really a waste. If you want to buy a second suite in the future, you have to pay more down payment and less loans from the bank. And if the first house is to buy two or three million houses, then you can borrow one or two million from the bank, which makes you feel very cool and makes full use of the preferential qualification of the down payment house.
Therefore, when ordinary people buy a house, they should try to buy a bigger house and a better location, and cooperate with the preferential efforts of the first suite to borrow as much as possible from the bank. It's cool to invest the money you earn in your hand. With so many investment opportunities now, it is easy to beat the mortgage.