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Home loan options available

With lots of different home loan options available it can be confusing and a challenge to decide what option best suits your needs. Each option has different rates, fees and structures. Our job and focus is to find the best mortgage for your individual needs. Here is a brief description of some of the more common options:

Table Loans

You choose a repayment amount that suits your budget and those repayments remain the same. The first few years will see only a small amount of your payments allocated to reducing principle, with a majority going towards interest. This will change over time and eventually a majority of payments will go towards eliminating principle.

Reducing Loans

Payments for reducing loans will start relatively high and reduce over time. Your principle payments will stay constant, while interest payments gradually reduce. This means your repayments change each payment period.

Interest Only

This loan is not advisable for most borrowers, as the name suggests, on this loan, you only pay interest and no principle. This is usually an interim measure, for example could be used as bridging finance well another home is sold.

Transactional Loan

By combining all your bank accounts in one, your savings and salary directly off-set your mortgage, reducing your interest. However the interest rate is a little higher.

Revolving Credit

Revolving credit is a bit like an overdraft. Just like a transactional loan, all your accounts are combined in one. However unlike a transactional loan, there is no scheduled reduction in your loan balance.