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Step 4 - Hunting for a home loan. |
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Borrowers in the market for a competitive home loan need to educate themselves about the different home loans which are available on the market.
Which loan features do you fancy?
Borrowers need to decide which loan features they need. If you'd like the security of knowing exactly the amount of your repayments, then a fixed loan could be for you. If you think interest rates could fall in the future, then a variable rate might be more suitable.
Loans that offer redraw facilities are popular as they allow borrowers to repay more than the minimum regular mortgage repayments and withdraw surplus repayments. If you have surplus disposable income, then an all-in-one loan or 100 per cent offset account might be the ticket. Putting your savings and income into these accounts offsets the loan principal and reduces the interest you pay on your home loan. This can save thousands of dollars in interest costs over the term of a loan.
You'll need proof of income such as pay slips or recent tax returns, proof of your savings history and other documents that may be required.
