Knowing these typical features of Home Loan is a MUST for you!!

 If you’re looking for a home loan, you need to know that there’s no right home loan for everyone. But there’s a right one for you.

Nowadays, there are so many different loans available, each has its own benefits and drawbacks. Most importantly, lenders are more competitive than ever and refining their products constantly. Here the issue is, how do you find one suitable for you?

To get the answer, you need a broker. A broker will speak to you first to understand your needs. Then he looks at options that suit those needs and choose one that’s right for you.

So, before talking to a broker about your next steps, read the guide to learn some typical loan features!

The Common Home Loan Features That You Must Know

It is true that not all features will be available on every loan. Being a borrower, you can ask about any that excite you.

Interest Only Repayments

By choosing this option, you only pay the interest on the loan, not the principal. You may get this feature for a further interest-only period. Here, if you’re not paying off the principal, the amount of your monthly repayment will be lower. These kinds of loans are more suitable to investors. This strategy is ideal for the property having achieved capital growth before it gets sold.

Extra Repayments

If you pay more than the desired repayment, the extra amount may get deducted from the principal. This not only decreases the amount you owe but reduces the amount of interest you repay. Extra repayments are the best way to pay off your home loan quicker and save on interest charges.

Weekly Or Fortnightly Repayments

Yes! The borrowers ask for this option because regular monthly repayment is difficult. This feature will offer you the liberty to pay off your home loan weekly or fortnightly. You can save money because you end up making more payments in a year and cutting the tenure of the loan.

Redraw Facility

This feature allows you to access any extra repayments you have made. Knowing you have access to funds can reduce your stress. Be conscious of lenders that may charge a redraw fee and have a minimum redraw amount.

Repayment Holiday

As you enjoy a holiday between tiresome months, this feature offers a complete break from repayments or makes reduced repayments for an agreed period. As per experts, this can be useful for people who need to travel, women on maternity leave or a career change.

Hire help from professional and renowned Mortgage Broker!

If you’re looking for a home loan, you need to contact a reliable source like Bayside Lending Service. The company helps navigate you through the competitive and ever-changing mortgage landscape to find the right loan for you. Their team will go to bat and negotiate on your behalf. They can make the process as simple as possible for you and make sure you get the right home loan for your circumstances and manage the process from start to finish. To know more, visit baysidelending.com.au right now!