When considering a home loan, the first and often only comparisons made by most borrowers are the interest rate and fees charged, leaving out other features.
Home loans come with so many options 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. Sometimes 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 job 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 to another.
Top-up
The ability to increase your borrowing limit without the need to apply for a new loan.
Prior to making any big decision, always seek professional guidance. Here at Financial Planning Qld we can significantly reduce your fees, interest and stress. Give our office a call and ask for me, Darren, to see how I can help you.
This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.
