IS YOUR HOME LOAN COSTING YOU MORE THAN IT SHOULD?
Our clients often come to us saying they’re no longer being rewarded for being loyal customers at their bank. Most banks will entice new customers with better deals than they’re receiving. We can do the groundwork for you and make sure you’re not paying more than you should… and if you are, with interest rates at an all-time low, it may be a good time to do the switch.
Switching banks may seem daunting, but we make sure the transition is simple and seamless for you. We can arrange new accounts and credit cards to be opened at the same time your finance is approved, and with today’s technology and direct debit options, you can also choose to keep your everyday accounts with your current bank.
The right home loan can make the difference between a good investment and great investment. Our unbiased approach will guarantee we'll find the most competitive deal for your circumstances.
HOME LOAN TYPES
Variable interest rates can fluctuate over time. If rates move up or down, your loan interest rate will adjust accordingly. Generally, interest rate movements are determined by the Reserve Bank, however, lenders have recently started independently raising their interest rates for varying economic reasons. Variable loans usually allow you to pay additional repayments, and there is less risk of penalties if the loan is paid out early.
Fixed interest rates are locked in for a set period of time, usually between one and five years. If interest rates move up or down, your interest rate is secured. Fixed rate loans can have a downside – you’re limited in making additional repayments (if any), and you may also have to cover potential break costs if the loan contract is paid out during the fixed rate term.
A split loan gives you the option to fix part of your home loan and leave the other part variable. Having part of the loan variable means you can still make extra repayments without being penalised on the variable portion, and gives you peace of mind on the fixed portion, knowing the rate won’t change. Many people tend to go with a split loan to manage some of the risks if interest rates rise.
Most professional packages come with an annual fee. In return, the lender will provide a significant discount on the interest rate, as well as other products, such as fee free offset accounts, reward credit cards and discounts on insurance products.
Generally, basic loans are variable loans, but without the frills. They may offer an introductory rate, and there are usually no application or ongoing fees. Basic loans don’t offer as much flexibility as professional packages, such as offset and free redraw.