01.Introduction

Home loans are no longer just about signing up for 25 years and making regular payments — nor even just about trying to pay off the loan as quickly as possible.

For some people, flexibility and peace of mind are just as important, and there are a range of home loan options that offer such benefits. However, these extras cost money, and the key feature for most people is still the interest rate.

Finding the right mortgage may take some time, but it can save a lot of money and stress. This report will help you narrow down what type of loan will suit you best.

How much can I borrow?

Lenders generally assess your present financial commitments and income to ensure you're capable of repaying the loan. However, don’t just rely on this, make your own assessment of whether you can afford the repayments.

It’s a good idea to give yourself a buffer, a good idea is to assess if you can still comfortably meet your repayment in case interest rates go up by 2%.

More help

• Risky home loans gives the low-down on new types of loans marketed as being affordable, including 40-year mortgages and no-deposit home loans.
• Consider using a mortgage broker. A good broker can explain your options, match your needs with lenders’ products, and assist with paperwork and loan application forms. Use our tips to ensure you get value from a mortgage broker.
• Use our calculator to find out how much time and money you could save on your mortgage by making extra repayments.
• For information on how to save on interest and pay your mortgage back faster check Fast-track your mortgage.