There’s an old saying……“you make your money when you buy”. Getting your home loan right at the beginning can put you in a winning position later.
By choosing a loan with a competitive interest rate, low fees and a mix of features that suit your needs, you could save tens of thousands of dollars over the course of just a few years, so it’s good to be in the know with what’s on offer.
Here are some of the main loan types to look out for:
Variable rate loan. The rate of this loan has the ability to go up or down as the market changes. Variable rate loans give you flexibility to pay additional funds into your loan and have an offset account, but can also leave you open to rate rises which is something you need to factor in.
Fixed rate loan. Your interest rate and repayments will stay the same during the fixed term, no matter what. So no surprises. You are limited to how many extra repayments you make during the fixed term.
Split loan. A combo of the two loans above. You can lock part of your loan as fixed and the other part as variable.
Introductory rate loan. Also known as ‘honeymoon’ loans, these offer a low interest rate for a short period (eg. a year), after which the rate moves to the standard variable rate.
Construction loan. If you want to build a home or change the structure of your existing home, this is your loan. Most construction loans are interest only for the first year while the build is underway and interest is charged on the amount you draw down on from the loan for building repayments.
I can run you through the features of each loan and which one could work for you. book a time to chat at and I’ll answer your questions.