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Comparing loans

Selecting a home loan that meets your particular goals and objectives is a very important decision to make therefore it’s crucial to understand a few basics before you can begin comparing loans objectively. In choosing a loan most people will be motivated by comparing the interest rate however there are many factors to consider in selecting the most suitable loan for your personal situation and circumstances. As a mortgage broker it is our duty to assist you in choosing the correct loan by discussing the various features and facilities available. Some loan features when utilised correctly can help you become debt free sooner while others will place restriction on you that may be very costly to remove if necessary.

Once we understand what loan suits you best we run the details through our loan comparison software that can compares hundreds of loans from 29 lenders Australia wide. At this stage we can then may recommendations and begin identifying the most competitive rates.

Listed below are some items requiring consideration prior to choosing a loan facility.

  • Fixed or Variable Interest Rates

    Variable rate – A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your payments are blended with principal and interest).

    Fixed rate – Fixed interest rate loans are loans in which the interest rate charged on the loan will remain fixed for that loan's entire term, no matter what market interest rates do. This will result in your payments being the same over the entire term. Whether a fixed-rate loan is better for you will depend on the interest rate environment when the loan is taken out and on the duration of the loan.

    Fixed & Variable – A fixed & variable rate loan is a combination of the above 2 loans.

    Q. Do you intend to sell your property in the next 2 – 5 years?

    Q. Do you intend to make additional payment or lump sum payments towards your loan?

    Q. Is it important to have certainty about the interest rate and/or repayment for a fixed term?

  • Principal & Interest or Interest-only repayments
  • Split Accounts
  • Re-draw Facility
  • Offset facility
  • Line of credit
  • Top up
  • Product portability