Different Loans, Different Homes: A guide to home financing

By the resi financial blog team, 21 October 2013

A guide to financing

Whether you're a first home buyer or venturing into property investment, the value of a secure loan cannot be underestimated. Because of the financial obligation, it is essential to chat with a financial expert and find the best home loan type for you and your real estate goals.

First Home Buyers

If you’re a first home buyer and wary about how a mortgage will affect your monthly cash-flow then you should consider investigating a fixed rate home loan with a competitive interest rate and a reasonable fixed repayment period.

This will reduce stress and give you peace of mind knowing exactly what you need to pay each month,  especially if you have other financial obligations to take care of simultaneously, like a student loan or car repayments.

Investment Options

Property investment is a fantastic way to help supplement your income and begin accumulating wealth for your retirement, while retaining your own career and lifestyle.

Investigating a home loan that offers a number of different features could be a brilliant idea for investment owners. Taking advantage of things like an offset account or a redraw feature could help you to make savings on your repayments in the long term.

Another option is the interest only loan, which is perfect for investors looking to sell quickly and profit from large capital gains achieved over a short period of time.

Construction and Renovation Loans

If you’re looking to build your dream home or renovate your existing property then there are construction and renovation loans to help you get the project up and running. This loan will help you cover the costs of builders, new land and equipment.

Before deciding on which loan suits your circumstances you should also consider the features of the loan product. The ability to make extra repayments, redraw facilities, offset accounts plus other feature options can all be used to reduce the interest payable over the life of your loan.

For an obligation free consultation to discuss the best loan options for your circumstances, contact a resi loan specialist today.

Categories: Home Loans, Personal Finance