Finding the right home loan for your property can be difficult. After all, there are so many options available, making the decision means learning about a whole variety of loan types, facilities and benefits.
However, it's important to take these situations seriously, especially if it's your first home loan. You're going to be making repayments on this for a long time, so it pays to seek out some great advice and educate yourself in order to make the most informed decision possible.
Depending on the type of investment you're looking to make and current market trends, understanding the basic differences between the most common home loans types could be a good place to start. These are fixed rate and variable rate home loans, and the differences between the two could be immensely helpful to your real estate goals.
Fixed Rate Home Loan
One of the most common types of home loans for first home buyers is a fixed rate mortgage. These consist of an unchanging interest rate, which will remain consistent until the end of your term – which usually last between three and five years.
This type of loan can be a secure option, due to the fact that the rate doesn't change regardless of market activity or fluctuations in the economy. This means that securing a fixed rate home loan while interest rates are low could be a great way to set yourself up in a comfortable situation.
Variable Rate Home Loan
On the other hand, variable rate home loans don't have a set interest rate. Therefore, these can be influenced by variations in the market, which can work in the owner's favour in times of economic prosperity. Unfortunately, the risk you run with his type of loan is when rates begin to grow, which in turn increases your repayments.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we'll call you!