Nowadays, borrowing a home loan is not about signing up for 25 years of the loan term or
hustling to pay off the loan swiftly, but it is also about flexibility. Taking up a mortgage that
will cost you 25 years will surely be ticking your mind. Peace of mind is equally important
while taking up a loan. Owing to this, there are different kinds of loan options offering such
benefits. But again, these loans can cost you a little extra money irrespective of the interest
rate is the primary feature. So, you might be having the most fundamental question in
your mind now, “Which home loan is right for me?”
Our financial experts at APW Finance have compiled the article below that explains the
features you need to look for while borrowing a home loan to guide you through the different
kinds of loans.
So, read on.
Types Of Home Loan
There are three basic categories of home loans.
1. Basic loans
This loan is known as basic for a reason. This loan type has no extra frills that attract the
borrower nor any hidden costs. It has a low interest rate and a straightforward loan amount
without any redraw facilities. Some loans offer extra repayments during the tenure, but no
such option is available in basic loans.
2. Standard loans
This loan amount offers a little more flexibility in comparison to basic loans. There is a
provision to withdraw the extra money you have paid apart from the set repayment amount.
You can split the loans and set two different interest rates like fixed and variable. If your loan
is under a variable interest rate, you can change it to a fixed rate as well. Standard loans
also provide a 100% offset account. But again, there are loans with lesser interest rates and
the same kind of features.
3. Home Loan Package
Based on your loan amount, the home loan package offers a 1.2% discount on the set rate
of interest which is comparatively cheaper than essential loans. The home loan package
includes a no-annual-fee credit card and a free transaction account. Irrespective of the
package value, a yearly fee of up to $400 per year is applicable.
The Main Features Consider Before Availing A Home Loan:
● Extra repayments
● Redraw facility
● Repayment holidays
● Mortgage offset accounts
Availing of a loan is undoubtedly a significant financial decision that requires upfront
research to select the right loan type. We at APW Finance are well aware and experienced
with all kinds of loans as per the borrower’s requirement.
You can contact us to get complete guidance about the best home loan and contact the lenders through us.