The array of mortgages available helps a good credit adviser to tailor a package to suit your needs. Here are just some of the options.
Fixed-rate mortgages
With a fixed-rate product, you know exactly how much you’ll pay per fortnight or month for the fixed period of the
Variable rate mortgages
Repayments can change during the life of a variable-rate , so you may pay more or less as interest rates rise or fall. If you’re fairly sure that rates are set to fall, this is a good option.
Principal and interest mortgages
In this mortgage, you are paying the amount lent to you plus the interest.
Interest-only mortgages
With interest-only, you are paying just the interest on the mortgage– you are not paying off any of the original principal.
Split home advance (fixed and variable)
You can choose to have part of your mortgage at a fixed rate, and the other part can be at a variable interest rate. If rates do fall, the interest will go down on the variable portion of your mortgage, but you aren’t taking as big a risk should rates rise.
Redraw facility
If you have a variable-rate mortgage and you make extra repayments, then you can withdraw that additional money when you need to (you can’t do this on fixed-rate product).
Land loans
A land mortgage lets you buy a block of land without the pressure to build on it as soon as practicable. Land loans are usually variable interest for up to 30 years.
Construction loans
This type of mortgage can is commonly used for buying land, building a brand new home. Or even for renovations if they are extensive. A 12-month construction mortgage can be the best way to go. Usually, up to 90 percent of the property value can be borrowed.
Non-PAYG loans
For self-employed people, a home loan can still be arranged using differing supporting documentation that shows your ability to service any loan and might include BAS and bank statements. You self-certify your income, which will need verification. You may be able to borrow up to 80 percent of the property’s value.
Equity release
This mortgage type allows you to convert a portion of your residential property ‘asset’ into cash or an income stream while still allowing you to continue to live in your home.
The best person to help you tailor a mortgage to your needs is an Awesome Lending Solutions Broker.
Call me now for a free home loan review or a first home buyer review 1300 761 988
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