Canstar asked 5 experts, including me, to share how we got on the property ladder and share what we learned from our experiences Here’s what we had...
There are many different home loan types. We will find the type of home loan that best will suit you.
The interest rate varies throughout the term of the loan. The term is generally about 30 years. This is the most common type of loan. It is typified by the following:-
Lenders now offer basic variable loans with lower interest rates, but with fewer features than a standard variable loan. The interest rates and repayments vary over the term of the loan. These are typified by:-
Fixed rate loans protect you against interest rate changes for an agreed time, so you have peace of mind knowing your repayments won’t increase. These are typified by:-
The interest rate is usually low to attract borrowers. Also known as a honeymoon loan, this rate generally lasts only for a few years before it rises. Rates can be fixed or capped. Most revert to the standard rates. These are typified by:
This is a separate savings account attached to your loan. The rate of interest in your savings account is the same as the loan. Any credits to your offset account are deducted from your loan balance before the interest is calculated. These are typified by:
This is not a mortgage product rather a savings product and hence you should speak to specific lenders regarding this product.
A low-doc or no-doc loan is ideally suited for investors or self-employed borrowers looking to refinance, purchase or renovate. No tax returns or financial reports are required. These are typified by:
It allows you to pay off an investment and a home loan through a single account. Interest on the investment repayments are tax deductible, but the home loan interest is not. This basically means you can pay off your home loan quicker, allowing the interest to gather on the investment loan, and deduct it from your annual tax. These are typified by:
Note that this type of loan has been under scrutiny by the ATO and without sound financial advise it may not be appropriate for you