Home Loans

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Home Loans

This is usually one of the biggest purchases you will make financially and possibly the property you will own for the longest.

There are many things that may be important to you like:

  • Lowest interest rate
  • Saving interest on your loan
  • Paying off as quickly as possible
  • Having access to funds
  • Lender’s who accept credit issues
  • Being able to purchase before you sell your current home

Loan features play a big part to ensure that you end up with the home loan of your dreams. Here are some features to consider:

Variable

Variable – Variable rate home loans are popular and offered by most lenders. With a variable rate loan, the interest rate you are charged can fluctuate in line with market interest rate changes. Because of this, your home loan repayments may also vary. Generally, the variable interest rate on your loan
will move in line with the market rate set by the RBA, but banks can set their own interest rates and change them at any time.

Offset

A mortgage offset account is a savings or transaction account that can be linked to your home loan. The balance in this account ‘offsets’ daily against the balance of your home loan before interest is calculated. An offset account can help you cut years off your home loan term and save money on interest.

Redraw

A redraw facility is a loan feature that is usually available with variable rate home loans and some fixed rate loans. A redraw facility lets you access any extra repayments you’ve made on your home loan.

Fixed rate loan or perhaps fixed with an offset

A fixed rate home loan allows you to set your interest rate for a period of time. This is usually in the range of one to five years. Sometimes, you can arrange to secure your interest rate for longer.

Fixing your interest rate can be a suitable option for some people, however, you should be aware of the following:

 

  • Fixed rate home loans often have higher interest rates than variable rate home loans.  Often, the longer the fixed rate term, the higher the interest rate is likely to be. For example, a five-year fixed loan will usually have a higher rate than a three-year fixed loan.
  • If interest rates do not rise, or if they fall during your fixed rate period, you could then pay more interest than you would if you had a variable rate home loan.

Construction loan

Construction loan allows you to access your loan funds at the completion of each stage of your build, meaning that you’ll only be paying interest on funds as you need them and not upfront on the full amount. These repayments are interest-only during the construction period and are repaid monthly.

Debt Consolidation

Debt consolidation involves bringing your existing debts together into one new loan. The objective is to reduce the number of individual payments you make and reduce the interest rate you are
paying on your more expensive debts.

During our strategy session we will discuss your needs and your lifestyle to determine what may suit you the best.