There have been lots of changes to owner-occupied and investment loans in the last few years, and it pays to have someone who knows what they’re doing to ensure you don’t get stung with high interest or poor loan features. So, whether you’re looking to buy your very first home, upgrade your existing home to cater for a growing family or purchase an investment property to grow your wealth, let us help your navigate the lending landscape.

How home loans are structured is typically based on:

1. The purpose of the loan;

• Purchase by a first-time home buyer or Owner-occupied.
• Property investor, or
• Refinance or restructure an existing loan.

2. The Interest Rate type;

• Variable Rate: meaning the interest rate can move either up or down at any time based on the market,
• Fixed rate: meaning the rate is ‘locked in’ for a set period.
• Split Rate: where a portion of the loan is fixed, and the rest is variable.

3. The setup;

Loans can either be based on principal and interest repayments or interest-only repayments.

A home loan is secured against your property, so if you are unable to continue paying the loan, the lender may ultimately be able to sell the property to settle the debt. When it comes to comparing home loans, the interest rate is an important consideration and can make a significant difference in the total cost of a loan. There are also several other factors you need to consider when comparing loans: the Fees attached to the loan features available, including an offset account or redraw facility.

It is worth keeping in mind that going with the lowest interest rate will not necessarily mean you are getting the cheapest home loan in the long run.

Up-front and ongoing fees can cancel out some of the money you would save in interest, while the features you get with the loan may boost the value you are getting overall. For example, a home loan with a slightly higher interest rate which allows you to make extra repayments and offset interest, might better suit homeowners and help them get ahead faster than the ‘cheapest’ home loan rate would.