Home Loans

Which home loan could suit you?

The home loan market doesn’t stand still. New products are launched almost every day. Your Finance Today broker can compare and contrast over 300 different home loan products from the lenders on our panel to see which ones suit you and your goals.

When you’re ready to discuss your options in more detail it’s simple to make an appointment to speak to a Finance Today broker.

Loan features to consider

There are lots of different features and benefits to consider when you’re choosing a suitable home loan for you. Do you want to be able to reduce your loan interest? Have the convenience of combining all your accounts into one, get a discount on your interest rate? Or make additional repayments to pay your home loan off more quickly?

Your local Finance Today Adviser will be able to help you decide what’s most important for you.

The questions below will help you decide the features you need, which should in turn guide you to the home loan that suits your needs. When answering the questions, think ahead, not just until next year but also to 5 or even 10 years down the track. It's important to be realistic in your answers. Ask yourself the following questions:

  • Do I want to pay the loan off as quickly as possible or am I happy to see out the term of the loan?
  • Am I good at sticking to a budget or am I a spendthrift?
  • Do I require certainty in the amount of my loan repayments or am I happy for them to fluctuate with official interest rate movements?
  • Am I likely to want to draw back some of my repayments in the future for spending on holidays, cars, furniture, etc?
  • If I am planning on having children, how will this affect mine or my partner's work situation?
  • For existing children, have I adequately budgeted for school fees and other expenses that are likely to come up in the future?
  • Am I likely to receive some form of cash windfall or bonus at any stage?
  • How secure is my employment or work situation?

These answers will assist you in clarifying your goals, which will in turn help us work through the different loan options and arrive at the one that suits you.

Depending upon your answers to the above questions, you will need to seek a number of loan features that are specific to your situation. Some of the more common loan features available are outlined below.

1. Additional repayments

These are payments that you make which are above the standard repayment for your loan. So for example, a $300,000 loan with a 7% interest rate requires a monthly repayment of $2,120. If you want to pay the loan off quickly and reduce the interest bill, you might make monthly payments of $2,500, which would include an extra repayment of $380.

2. Direct salary credit

Allows your salary to be paid directly into your home loan account. This is an advantage if you are not a disciplined saver.

3. Loan portability

Allows you to take an existing loan to a different property when you move. (Saves you on Mortgage Stamp Duty).

4. Offset account

This is a separate account that is attached to a loan account. The balance of the offset account is deducted from the balance owing on the loan account when calculating the daily interest charge. For example, a borrower with a $300,000 mortgage and $10,000 in an offset account will only be charged interest on $290,000 and not $300,000. Some products do not offer 100% offset, while others may require a minimum balance in the account before the offset applies.

5. Redraw facility

Allows borrowers to access extra payments that have been made. This money can then be used for a variety of purposes including a holiday, furniture or car. Some lenders have a minimum redraw amount and may also charge a fee per redraw.

6. Repayment holiday

This feature offers a complete holiday from repayments or a period of reduced repayments. This can be especially useful during career changes or breaks such as maternity leave.

7. Switch to fixed rate

Allows the borrower to switch from a variable to a fixed rate loan.

8. Top-up

Allows a borrower to increase the limit on a home loan, using the equity in your property for other needs (e.g. renovations).

Call Finance Today on 1300 886 580 for a no obligation discussion on your requirements, e-mail us or alternatively make an appointment online.


More on Home Loans:

Standard variable mortgage loan
Basic variable mortgage loan
Intro rate ‘honeymoon’ mortgage loan
Fixed rate mortgage loan
100% offset mortgage loan
Line of credit mortgage loan
Low-doc & credit impaired mortgage loan
Construction mortgage loan
Reverse mortgages

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