residentialhomeloans.com.au

To obtain a home loan, you’ll need to be 18 years or older and have the income to meet the loan repayments. Most institutions will lend money for a home whether it’s a flat, unit, house or land package. A number of different home loan options are available. The maximum term available is 30 years for a home loan and 25 years for a Residential Land Loan. Generally, you have the option of paying your loan on a weekly, fortnightly or monthly basis depending on what suits your requirements. The more often you can make repayments, the lower the interest cost and the sooner your loan will be repaid. If you hope to pay off your loan earlier, ensure that your loan allows for additional repayments, increasing the monthly repayment amount, or occasional lump sum repayments that may be made at any time. You should also ensure that you can pay out the loan in full at any time without incurring any penalties. Fixed Rate Home Loans generally have charges for early repayment. Repayments are determined by the amount borrowed, term of your loan and the interest rate.

Choosing a home loan that’s right for you: There are two basic types of home loans available, both offering you a range of repayment options.

VARIABLE RATE HOME LOAN: - The interest rate is described as variable because it may change during the term of the loan depending on economic conditions. - You can usually make your repayments monthly, fortnightly or weekly. - The maximum term is 30 years. - Interest is calculated on the daily outstanding balance of your loan and charged to your account monthly, so any additional or increased repayments will benefit you immediately. - Unless the loan is paid out in the first five years, there are seldom extra costs for early repayment of the loan, other than Government/Bank discharge fees.

FIXED RATE HOME LOAN: - As the name implies, this home loan has a fixed rate of interest for a set term. Terms can vary from one to five years. After which, the loan can be renegotiated for another fixed rate period or transferred to a variable rate home loan. - Repayments also remain fixed for the negotiated term. - You may be able to choose to repay interest only or principal and interest. - There may be additional costs if you opt for early repayment of the loan.

If you would like any further information or to arrange to speak to one of our home loan representatives please email us today: mail@residential property.com.au