Looking to dive into the property market but have no idea where to start? Here's what you need to know

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Housing prices continue to increase but cooling inflation and the likely peak of interest rates is set to entice more buyers and sellers in the coming months.

CoreLogic's national Home Value Index saw an increase of 0.8 per cent in August, meaning property prices have risen for six months in a row.

If you're looking to dive into the housing market for the first time but have no idea where to start, here's what you need to know.A deposit is the amount of money you'll offer to the bank or lending institution in order to secure your home loan. For example, if you're buying a $600,000 house and you have a $450,000 loan, your loan-to-value ratio would be 75 per cent.

How much extra you'll end up paying on top of the house price will depend on the interest rate you're charged. Interest-only loans tend to come with the highest interest rates, so you could end up paying more over the life of the loan. You don't have to take what they offer either — if you're unhappy with the options, you can ask for alternatives or go to another broker.

 

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