Ready for your next property? Even though you may have a mortgage on one property already, Southside Mortgages can help you find added benefits as the broker for your next home loan. If you’re relying on your current home to fund the next, or want to turn your current home into an investment property, let us provide professional advice on how to best structure your loan.
Fixed interest rate
loans are loans in which the interest rate charged on the loan will remain fixed for that loan’s entire term, no matter what market interest rates do. This will result in your payments being the same over the entire term
A variable interest rate loan is a loan in which the interest rate charged on the outstanding balance varies as market interest rates change. As a result, your payments will vary as well (as long as your payments are blended with principal and interest).
An offset account is a transaction account that can be linked to your home or investment loan. The credit balance of your transaction account is offset daily against your outstanding loan balance, reducing the interest payable on that loan.
A split loan allows you to borrow part of your mortgage on a fixed interest rate and the remainder on a variable interest rate – all under the one loan product. This means you have the flexibility of variable terms and the repayment security of a locked-in rate. You may also retain important loan features, such as making additional repayments, a redraw facility or linked offset account.
Sometimes you need to bridge the gap between your old and new homes. Talk to us first, because for most people it is advisable to sell your existing property before committing to the next.
Depending on your home loan, you may be able to take the same home loan with you when you move from one property to another. It can be convenient, but you need to ensure you are happy with all the loan’s features.
Every home loan needs a health check. You may get a better interest rate, or want to buy an investment against your current property’s equity, or even be looking to consolidate some unhealthy credit card debt to ease your cashflow. Refinancing pays out your current home loan by taking out a new loan, either with your existing lender or through a different lender.
Southside Mortgages recommends an annual Home Loan Health Check to assess whether the original home loan you chose is still the most suitable option for you.
Contact Wendy for more information…