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Comparing home loans
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Purchasing that first-home upon which you will share so many intimate bonds is one of life’s big decisions, packed with conflicting emotions from the ecstasy of finding that perfect place in the sun to the trepidation of finding the means to make that dream home a reality.
It is for this reason that prudent advice is invaluable in ensuring that you can attain your new abode without excessive financial strain, for in considering the wealth of options available it is possible to rip thousands of dollars off your mortgage.
Comparing different types of home loans
Indeed, the first rule of any wise property investor is to jettison the notion that “one size fits all” and shape the parameters of the home loan towards your needs. Remember, the lender is meant to serve your needs not their own! And why would you pay anymore for your mortgage than you have to? So depending upon your disposition, you should be able to select the loan that bests fits your needs in regards to a wide range of criteria.
Comparing variable and fixed-term mortgages
One of the most significant variables that dominate many home loan transactions is the interest component, which can be calculated either as a fixed rate home loan or as a variable rate depending upon the degree of exposure to changing interest rates the borrower is willing to entertain. If you are an investor that wishes to “lock-in’ to the current interest rate then the fixed rate loan may be the way to go. However, if you are willing to consider fluctuating interest payments, then the variable rate-loan could offer savings in the long-term. If neither of these options seem appropriate, it is also a possibility to take out a split rate home loan, which offers some of the security of the fixed-rate mortgage loan alongside the greater flexibility of the variable-rate home loan.
No deposit loans, no-interest loans, no doc loans
There are various other options available to prudent investors such as no-deposit home loans that allow investors to borrow 100% of the purchase price, interest only mortgage loans, which enable the borrower to reduce the size of the repayments by only repaying the interest component in their installments and no doc home loans ideal for borrowers with fluctuating incomes who don’t want the borrower sticking their nose into their private business.
If you need help and wish to compare home loans visit eChoice, this mortgage broker compares over 25 lenders and hundreds of products.
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