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.
Please note: this information was current as of May 2008 but is still a useful guide to today's market.
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
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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.
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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.
1 Mar 2008
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Extra repayments can have a huge effect. Our case studies were amazed at how modest extra payments could save tens of thousands in interest.
2 Oct 2008
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The best savings were achieved by switching to a credit union or an online subsidiary of a major bank – and you can’t get any of those loans through mortgage brokers.
5 Jan 2008
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With first homes averaging $430,000 and housing affordability at a record low, new types of loan may seem tempting — but are they safe?
21 Apr 2008
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If brokers’ advertisements and claims are to be believed, they’re the answer for anyone seeking a loan to suit their circumstances.