Home Loans Explained
A "home loan" or "mortgage" is a loan from a financial institution which is used to buy, build, renovate or refinance property. As a Licensed Mortgage Broker, we have access to a huge panel of lenders who offer a diverse range of products, market leading rates and great solutions.
At All About You Finance, we take the hard work out of finding the right mortgage for you. Let's face it...nobody really wants a mortgage but you need a loan for a new home, investment property or renovation to your existing home. If you are going to have a mortgage, why not get one that's customised to your financial goals.
We will listen to your short, medium and long term financial goals. Then we will research all relevant loan products and consider which loan might suit you. Once the right loan for you is selected, we will assist with all the steps along the way to a successful settlement.
We also commit to staying in touch with you over time. This way we can listen to any changes you may have had in your life, review your loan and check you are still getting a great deal in the current market.
Variable interest 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.
What's good about a Variable Interest Rate Home Loan?
- You can make extra repayments to pay off your home loan sooner.
- You can have a redraw facility to enable you to withdraw extra loan repayments to use for any purpose.
- You can have flexible repayment frequencies such as weekly, fortnightly or monthly.
- You can repay the loan early without penalties.
- With many lender products, you can use an Offset Account to reduce the amount of interest you are charged.
- Many lenders offer a Home Loan package with involves paying an annual fee to gain benefits such as discounted variable interest rates, fee waivers, credit card fee waivers and discounts on insurance products.
Fixed Rate Home Loans offer you the certainty of knowing what your fixed repayments will be for the agreed interest rate term. While the most common fixed loan terms are 2, 3, 4 and 5 years, a fixed rate of up to 10 years is available from some lenders.
- Can allow 'Interest Only' repayments, enabling you to minimise your repayments and assist with cash flow.
- Some lenders allow limited additional repayments helping you to reduce the amount of interest you may pay.
- Provides ease of budgeting with set repayments during the fixed term.
- Can be used for Investors or Owner Occupiers.
- Charges may apply should you wish to terminate the term before the agreed maturity date.
- A Rate Lock feature may be available with some lenders. This ensure you keep the advertised fixed interest rate at the time of your application through to settlement for a specified period of time.
A Basic Home Loan is a 'no frills' loan which is designed to suit those who don't wish to pay for features they do not require.
- Loan terms can be up to 30 years.
- Flexible repayments - weekly, fortnightly or monthly, and additional payments usually permitted.
- Usually have a redraw facility to enable you to easily access any surplus repayments.
- Can enable you to take advantage of interest rate movements.
- Can be used for Investors, Construction or Owner Occupiers.
- With Construction Loans, progressive draw downs can be arranged.
- If interest rates rise, your repayments would increase in line with interest rate increases.