Home loans come with so many options these days that it is worthwhile taking a look at the features of each loan to see which one suits your specific needs.
Offset account – the ability to save surplus funds within a separate bank account which can be used to offset the interest liability on your loan—saving you interest over the long term.
Additional repayments – the ability to pay additional funds off your loan without penalty. This will help reduce your debt quicker and also save you more on interest.
Split loan – the ability to split your loan balance to have a portion on a fixed rate and a portion on a variable rate. You can have it both ways.
Repayment holiday – the ability to take a break from repayments or make reduced payments for a period of time to cover life events such as redundancy or maternity leave.
Redraw facility – the ability to make additional repayments on your loan with the option of withdrawing the funds again at a later time if required.
Portable loan – the ability to apply your loan to a replacement home if you sell and move.
Top-up – the ability to increase your borrowing limit without the need to apply for a new loan.
You may also consider taking out a professional package loan. Professional packages are generally only available if you have borrowings above a certain level or with a minimum level of income. This could offer lower interest rates and discounts on other products and services the lender may provide.
Talk to us to make sure your home loan is tailored to your particular needs. You could significantly reduce your fees, interest and stress.
Article originally appeared at https://yourfinancialwellness.com.au/. Find out more about Your financial wellness and get financially fit today.
Any advice given is of a general nature only and does not take into consideration your personal circumstances. Please consider the appropriateness of the advice before acting.