Home Loan Comparison in Australia

Why It Makes Sense Do A Thorough Home Loan Comparison

There is no denying the fact that owning a home, whether it is new or old is certainly a great experience. It is quite likely that almost eight out of ten Australians would have to approach some bank or financial institutions for funding their home loans. The options available are quite a few and borrowing a home loan is certainly is quite easy given the various options available. There is a plethora of options and rates that one could come across ranging from fixed rates, standard variable rates, introductory rates, lines of credit loans, interest only loans, redraw facilities and much more. While these certainly offer some choices to the customers, at times they could find themselves in a state of confusion and indecision. Hence, it is very important to do the right home loan comparison before signing on the dotted line.

Advantages Of Australian Home Loans

The biggest advantage is the variety of choices and options for the customers as far as Australian home loans are concerned. The market has well and truly matured over the years and today there are dozens of options available for customers. They can choose the best of loans that could either be ready-made or customized. They are well and truly in a position to call the shots if they have the best of credit records. In spite of all this, the onus lies on the customers to do their homework properly so that they can get best rates.

How To Get Started

The best way forward is to set a clear financial goal, which includes the budget within which you would be comfortable. It is also important to have a clear idea about the repayment period. These two are the main points that should be clear before you take the next step. This can help to zero in on the right property based on your financial comfort level.

Check On Credentials

It is also very important to that the lender you are dealing with is of repute and is a member of the Mortgage Finance Association Of Australia or MFAA. This is to ensure that as a customer, you are dealing with a lender who is professional and understands and follows the industry code of practice. Further, a good lender is one who has been in the business for a considerably long period and had quite a few thousand home loan borrowers in his field.

Research On The Type Of Loans

Australia is a country that has some of the best choices of home loans and, therefore, the customers are free to choose the one that suits their requirements perfectly. While this is great news for them, they also need to have some basic knowledge about the various types of loans and its features and benefits. Let us have a look at a few of them.

Basic Home Loan

A Basic Home Loan can often be considered to be one of the simplest and no-frills type of loans. It usually comes with interest rates that are pretty low. There usually are not regular fees and even if it is there it is very small. However, these types of loans usually do not allow the flexibility of additional payments than what you have agreed for. In other words, even if you make such additional payments, it will not give any interest remission benefit to you as the borrower. They are best suited for those who expect a steady flow of life with no dramatic upswings or downturns.

Honeymoon Loans

This loan is so called because it offers a lower interest rate than fixed or variable loans for the first few months. This is usually for six months to 12 months. However, the borrower is not the one who decides on the honeymoon period, and the discretion lies with the lender. Further such loans in Australia allow the borrower to make some extra payments and derive benefits out of the same in term of interest costs. This loan is suitable for those who want initial lower payments and who also are ready to reduce the loan liability by making a regular payment to the principal account.

Apart from the above there are quite a few other loans like redraw facility, a line of credit, all in one account and a few more. Hence, the onus lies on the customers to be fully informed and get the best benefits that are a part of any Australian home loan.

You can get a home loan in Australia – Simple application – Fast decision

Apply for a loan now and you could get the home that you really want in the next month. (subject to banking)

More info: http://en.wikipedia.org/wiki/Australia

Quick Home Loans Comparisons Australia