Navigating the rocky seas of property investment finance can be a challenging task for home buyers and investors. And it’s made even more difficult by all of the misconceptions about home loans that are out in the ether.

If you get your property investment financing wrong, it can cost you thousands, sometimes tens of thousands of dollars over the life of your loan. Get it right though and the benefits can be enormous, including saving thousands on interest repayments and excessive fees and charges.

For real estate investors, structuring your finance correctly is even more critical as it can mean the difference between building a lucrative, wealth generating property portfolio and never progressing beyond the first one or two investments.

So how do you make sure you end up with the right type of property investment or home loan finance and come out on top?

Here are 11 traps that can snare borrowers when seeking the best mortgage product and how to make sure you don’t get caught out.

1. Caught up in the razzle dazzle of the lowest rate
Given that the most talked about topic when it comes to home loans is interest rates, it’s not surprising that getting the best rate often becomes the sole focus of home buyers and investors. But what might seem like a good deal can often come with strings attached in the form of higher fees and ongoing costs or less flexibility. Then of course there are low honeymoon rates that some banks offer, which roll over after a year or two and start to look a lot less attractive.

Source: http://propertyupdate.com.au/11-common-property-investment-finance-mistakes-to-avoid-part-1/