Top Facts You Didn’t Know About Home Loans In Australia
Home loans in Australia can seem like an overwhelming matter for those who have never bought a piece of property. You may not know how to obtain them or what the laws are governing them. We’re going to take some time today to help you realize some facts about home loans in Australia so you’re better informed to obtain one for yourself when you’re ready to do so.
The first thing that a mortgage lender is going to ask you is what type of mortgage you want to apply for. The most common is going to be fixed rate and variable rate mortgages. It’s highly thought by many that variable rates are going to be around the same as fixed rates. This is simply not true.
Fixed rate home loans in Australia stay at the same interest rate for the entirety of the loan. Variable rate mortgages typically have an introductory period of two to five years where there is a fixed interest rate. After this introductory period, the rate will vary depending on the mortgage market. A variable rate mortgage can leave you open to high increases in your monthly mortgage payment and you end up paying more in the end for the same principle loan amount as a fixed mortgage.
For those who have already applied for variable rate home loans in Australia, there are some lifelines out there for you. You can take advantage of refinancing your home with a new fixed rate mortgage using
Home Loans Calculator at Loans.com.au and while you may be initially thinking that it’s going to cost more money due to the exit costs, it will not. Exit fees have been banned on variable rate mortgages. So, don’t factor exit fees into your refinancing decision.
Contrary to popular belief, you don’t always need twenty percent in cash to put down on a home loan. While this is a good number to go by, there are options to get home loans in Australia with a smaller or no down payment. It’s important to note that right off the bat you’re going to be paying on your loan for longer and you may be paying a higher interest rate depending on how the Home Loans Loans.com.au is set up. However, this is a great option for those who simply don’t have enough money saved up to buy a home, assuming their credit history is in check.
Home loans in Australia are not overly difficult to work your way through when applying if you understand the facts about them. The more knowledge that you gain on this particular subject, the more confident you’re going to be in dealing with brokers and other real estate professionals. We encourage you to keep learning the facts about home loans so you can ensure you get a great loan at a great rate.