Starting the journey towards committing to your first home loan can be a daunting process, if you don't take the time to research your options and get up to speed on the information available to you.

Everyone has different needs when it comes to choosing their preferred home loan, so there's no need to assume that a 'one size fits all' philosophy applies.

Whether you're after a construction loan, a mortgage for an investment property or something else, there are a range of different mortgages out there with varying features, so it's a good idea to work out what you need before you make any big decisions.

Here are just a few of the loan features you may come across as you narrow down your options.

Offset accounts

An offset account is linked to your home loan and allows you to use the amount in your savings account against your loan, reducing the interest payments you owe on your your loan balance.

The more you save, the more money goes towards paying off your mortgage, so this type of product works well for those who can commit to a savings plan, although there are risks involved as well.

Redraw facilities

With a redraw facility attached to your loan, you are able to make extra payments towards your mortgage that can then be taken out (redrawn) again later, should you need to.

This is a good option for those who would like to be able to pay more when they can to reduce interest, while also providing a potential savings buffer against financial issues in the future.

However, in some cases lenders may not release your redraw funds when you need them, so you may want to consider this option carefully.

For more specialised advice about your mortgage options, you may want to talk to an experienced professional who can help guide you through the process.

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!

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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.