Understand the real cost of borrowing.

Begin with the amount you actually need.

Define the expense and consider whether a smaller purchase, a delay or a different approach could reduce the amount borrowed. Avoid treating the maximum amount offered as a target.

Compare like with like.

Use the same loan amount and term when comparing providers. Review the rate, annual percentage rate where applicable, fees and total repayment amount. A longer term may lower monthly payments while increasing the overall cost.

Read the conditions that change the outcome.

Ask about variable rates, early repayment charges and what happens after missed payments. If the agreement includes a final lump sum, include it in your plan from the beginning.

Give the budget a realistic test.

Consider whether payments would remain manageable after an unexpected expense or a change in income. Request a clear repayment schedule and take time to read the agreement before signing.

This guide is general information, not personalised financial, investment, tax or legal advice.

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