Learn about home loans, before u loan

The best home loan choice for you depends on your financial situation, goals, and risk tolerance.

1. Fixed rate home loans

Picture this: you've locked in a fixed interest rate for your home loan, and it remains constant over a set period, usually 1 to 5 years. This type of loan provides predictability, as your repayments won't change, even if market interest rates rise. You know what to expect every month.

2. Variable rate home loans

Variable rate home loans are a bit like an adventurous rollercoaster ride. The interest rate fluctuates with market changes, which can mean both ups and downs in your monthly repayments. If you're comfortable with the occasional twist and turn, a variable rate loan could be your pick.

3. Split home loans

With a split home loan, you can divide your loan into fixed and variable portions. This way, you enjoy the security of fixed rates while also benefiting from potential savings if variable rates drop. It's like having a foot in each camp.
4. Interest-only home loans

Interest-only loans allow you to pay only the interest for a specified period (usually 1 to 5 years) before you start repaying the principal. These loans are great for managing cash flow but bear in mind that you'll need to repay the principal later.

5. Line of credit home loans

A line of credit loan grants you access to a predetermined credit limit secured against your property. You can use it for various purposes, similar to a gigantic credit card. Be cautious, though, as it can lead to higher interest costs if not managed wisely.

6. Low deposit home loans

If you're eager to become a homeowner but have a modest savings account, low deposit home loans are your go-to. They let you buy a home with a smaller deposit, usually around 5%. It's your ticket to homeownership without the need for a hefty upfront savings balance.

7. Bridging loans

For the ultimate homebuyer juggling act, consider a bridging loan. This loan allows you to purchase a new home before selling your existing property. It's a financial bridge that ensures a seamless transition to your new home. Just keep in mind that it can be complex and potentially costly.