This is what I do all day every day (and some nights too). You need to get the right advice to make sure you make the right decisions. It is not all about the rate. You need to look at fees and features of a loan to be able to compare them properly.
I will save you time & money in sorting through all the options – click the contact me button for an appointment.
Making yourself familiar with a few of the popular products available will give you a strong head start when we get together to discuss your options.
Here are just a few of the product types you’re sure to come across:
Basic home loans
Basic home loans or ‘no frills’ loans offer borrowers a loan with a low interest rate. A popular choice among first home buyers, a basic home loan’s interest rate is often half to one per cent below the standard variable rate, which is sometimes combined with minimal ongoing fees.
Drawbacks include limited features, less flexibility, and additional charges if you decide to switch loans or pay the loan off sooner.
Fixed-rate home loans
Worried about rising interest rates? A fixed-rate home loan will allow you to fix your interest rate for a specific period, usually from one to five years. It can be a sound option when interest rates are on the rise, or in times of economic uncertainty.
Should interest rates plummet, however, you’ll still have to pay off your mortgage at the fixed-rate until the end of the agreed period. Additionally, keep in mind that you will be charged a fee should you decide to break your fixed term early & switch to another product.
Standard variable-rate home loans
Considered a popular mainstream choice, standard variable-rate home loans allow you to borrow money for a set period of time, during which you make regular repayments based on the current interest rate. The interest rate can vary depending on fluctuations in the official cash rate.
Note: you should not pay the “standard variable” interest rate offered for the bank, this is the name of the product. You do not want to be “standard” strive for something more…
Professional Pack – or Annual Fee home loans
This is where you pay an annual fee to the bank and as part of that they give you a number of ‘free’ features, for example
• discount off their standard variable rate for the life of the loan
• discount off their standard fixed rates for the fixed period
• free transaction account (normally an offset account)
• a free credit card
• you can have a split-rate loan for no extra fee
Split-rate home loans
Want the best of both worlds? A split-rate home loan offers both flexibility and security.
A good product for both first time and existing borrowers, split loans allow you to customise your loan’s interest rate as you see fit: fixing a portion of your interest rate to give certainty to your monthly repayments should rates increase, but also flexibility through taking out a variable-rate portion.
Interest-only home loans
Interest-only loans offer borrowers lower repayment options, while maintaining many of a traditional loan’s features.
This type of loan allows you to pay only the interest component on a mortgage; it does not reduce the principal component.
They are a popular choice for investors seeking good capital appreciation on their investments.