Purchasing real estate is one of the classic Australian dreams, and something that most people across the nation will undertake at some point in their lives. However, there are a number of things to consider before approaching the market – and one of the most important is the choice of home loan.
If you're purchasing property for the purpose of occupying it yourself, it could be worth giving some serious consideration to securing a fixed rate home loan.
The first big benefit, especially for first home loans, is that you can fix your interest rate into place. Basically, you will retain the same level of interest repayment on your home loan for a set period of time – usually between 3 to 5 years.
By securing yourself with a set rate, you can insulate yourself from any dramatic changes that may occur within the market which could end up costing you a lot more in interest.
Furthermore, a fixed interest rate home loan offers you a sense of security by providing you with a homogenised, unchanging repayment amount during your repayment period.
This means you can easily plan ahead financially, while reducing the amount of stress that can come on a monthly basis through changing repayment amounts.
Now could be the perfect time to secure a great fixed rate, as the official cash rate is resting at a historically low 2.5 per cent, which is translating into low interest rates on home loans across the nation.
Getting serious about purchasing your first home while the market conditions are this good could help you get a headstart with your real estate goals.
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!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.