Choosing the Right Home Loan

When it comes to home loans, there are many different types to choose from - and if you are a first home buyer, you’ll want to carefully consider your options.

It is important to remember that all home loans are not created equal - and likewise, neither are the priorities of all borrowers. For example, some property buyers prefer a flexible home loan, while others want a product that ensures their long-term peace of mind. Others want to pay off their loan as quickly as possible.

The good news is that there are home loan products to suit everyone. Knowing what options you have can help you decide on the home loan that best meets your needs.

First, you will need to decide between a home loan with a fixed or variable rate. The former means that the interest rate you pay is ‘fixed’ for a specified period of time, which is usually between one and five years.

Alternatively, you can opt for a variable rate mortgage, which means that the interest rate you pay can fluctuate over time. These loans can be more flexible than their fixed-rate counterparts - but of course, it’s all a matter of personal preference.

Once you have chosen between a fixed or variable rate home loan, you’ll want to evaluate the additional features you may be interested in. For example, internet banking or ATM access may be appealing, as well as the ability to make extra repayments or utilise a redraw facility.

To get more detailed information on your situation, talk to a Loan Market mortgage broker today