There are so many home loan options out there to choose from, but which one is the best for you? Whether you’re buying your first home, thinking to refinance, or invest, what you need from your loan will vary. Here are the main features you should consider:
For First Home Buyers
In the first few years of your mortgage, you may not need features like a redraw facility or an offset account, as you will just be starting out with making repayments. So it may be better to opt for a loan with a low rate rather than lots of features because you can always refinance your loan in a few years as your priorities change. There are also few options avaialble for First Home Buyers to get closer to owning their dream home, such as First Home Loan Deposit Scheme and First Home Owner Rates Remission Scheme. With options like these, combined with perfectly-matched home loan will set you on track to live the Australian dream to the fullest.
There are a few options that could work for you:
- Mortgage loan option with an offset account that will allow you to offset loan repayments that turn to savings over time to help you repay the loan earlier.
- A home loan with principal and interest loan will work towards your advantage as you pay off money on interest and the loan itself. With interest-only mortgages, especially at the beginning, you will be paying off the interest rather than the loan itself, which makes your repayments smaller in the long run.
Depending on your goals as a property investor and your circumstances, you should look into a couple of strategies that will get you where you want to be:
- Many experienced investors opt for an interest-only loan as it will allow you to use the money you would have used to repay the principal to buy something else. To keep in mind, if you opt for this loan, you will end up paying more on interest than for principal and interest loan.
- If you have an investment property and also paying off your property, a loan that covers both properties would work best for you. This loan would have a low rate on your primary home and a higher rate on your investment.
It is always a great idea to check in with a mortgage broker to make sure you have the best deal for your goals and circumstances. Get in touch with our team of mortgage brokers to book your consultation today.