If you're interested in taking out a home loan and securing property for yourself in the near future, it could be worth looking into the options available to help make your mortgage work for you in the long run.
For example, one option that could be added to your home loan is known as a redraw feature. This can be added to your mortgage, and can benefit your life in a number of ways.
When you have this feature attached to your home loan, it allows you to access any extra funds you've accumulated over your home loan repayments. These can be withdrawn and used for whatever you like – making them an extra source of funds in the long run.
While you're making your regular repayments, you can make additional payments on top. These are what accumulate and can be accessed. But the best part is that they contribute towards your overall home loan repayment.
So if you don't end up using these funds, they're still working towards getting you debt-free faster.
What this means is that making additional payments can help to reduce the amount of interest you end up paying over the lifecycle of your loan. Chipping away at your remaining balance will have this effect, which means you end up saving money in the long term.
Furthermore, having a source of funds that is directly tied to your biggest asset can be a comforting thought, allowing you to keep on living life without worrying too much about any unexpected costs that may arise.
Of course, the terms and conditions of redraw facilities vary between lenders. So it is advisable to get in contact with a financial expert before committing to one.
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.