What's The Best Home Loan Type For You?
One of the biggest obstacles facing first home buyers is deciding on the most appropriate home loan type.
Never fear! For your glowing torch is here.
Basic Home Loans - These are the bare bone kind of loans which usually cause no trouble and simmers away quietly in the background while you get on doing what you do.
Less flexible than other loan types, interest rates between 0.5 and one per cent below the standard variable rate make this a good choice for first home buyers.
Standard Variable Rate Home Loans - Flexibility of payments without hidden charges and the ability to split your loan or establish your home loan as a line of credit are the highlights of a standard variable home loan.
The flipside of these perks is that these home loans tend to have higher interest rates than your basic home loan.
Fixed Rate Home Loans - Offering a fixed interest rate for a set time frame, these loans offer stability and consistency during the period of repayment.
Less flexibility and potential charges for early repayments of changes to the scheme are among the downsides to this type of loan.
To get more detailed information on your situation, talk to a Loan Market mortgage broker today.