Low rates aren’t everything when it comes to mortgages. The best mortgage for you will depend on your personal circumstances and what you would like to achieve from your investment. Your dedicated Loan Gallery Finance broker will work with you to determine your financial goals and circumstances and match you with a loan that suits your needs.
Here’s a rundown of the main types of loans:
1. Variable
Interest rates go up and down depending on factors such as the official cash rate, market conditions and each lender’s decision making. Your repayments will adjust up and down accordingly.
2. Fixed
Interest rates are fixed for between one to five years so even when rates change, your repayments stay the same. Of course, that also means if interest rates drop, you don’t reap the rewards.
3. Split rate
One part of your loan is variable, the other is fixed. Gain the benefits of an interest rate drop while enjoying peace of mind in knowing you’re protected from an interest rate hikes.
4. Interest only
This loan type gives you a bit of breathing space as it allows you to temporarily pay the interest cost only. In other words, your repayments will only cover the interest on the total amount borrowed. So the amount borrowed won’t reduce during this set period of time. Your Loan Finance Gallery broker will be able to explain all of the pros and cons of an
interest only loan.
5. Line of credit
You can pay into and withdraw from this account providing you keep up with the required repayments. You can even have your income paid into this account to help with paying the
mortgage sooner but keep in mind that the interest rates are usually a little higher.
