How it works
At Mortgage Choice, we want to help you make better choices with your finances so you can enjoy the things in life that matter to you.
To do this, we need to understand a little more about your individual needs and circumstances. The Solution Finder enables you to let us know what information you are seeking - which should make for a faster, more efficient search for you.
Simply select what you are looking to do from the first drop down menu - whether that is buying your first home or sorting out your insurances.
Then, select the stage you are at - whether you have just started out with your research or you are already well into the process.
Clicking on 'Get started' will then send you off to a page of content which is directly related to the information you need.
However, if it doesn't quite suit your needs, or you are looking for something completely different, just contact us on 13 77 62 - we are here and ready to help.
Home loan features
When it comes to choosing a home loan, there are many factors to consider on top of interest rates. Having the right facilities could save you big time in the long run, so it's worth understanding what's available in the market and the benefits offered by different loan features.
Other common loan features
This is a loan account that acts as a combined mortgage, savings and cheque account. You have a central mortgage account into which your salary and any other cash payments are deposited. The extra cash in your account reduces the principal amount owing and thereby the amount of interest charged. You then access the funds you have left over and above the minimum monthly repayment amount to pay monthly expenses.
These accounts often have a credit card linked to them, with the balance owing on the card at the end of each month being drawn down from the all-in-one account. Standard transactions such as ATM withdrawals and direct debits are also managed through the account so that many borrowers will not need another bank account. This can be an effective way of using the interest-free period on your credit card each month.
- Offers flexibility.
- May be tax effective.
- Can result in interest savings if used with discipline.
- Higher interest rate than some other products.
Professional packages are generally only available on home loan amounts over a certain value. Usually, the greater the loan amount the more likely the lender will be to offer additional interest rate discounts.
- Potential interest rate discount.
- May include discounts on other banking products.
- Borrowers may not need the additional services offered.
- Borrowers may be better off (financially speaking) with a basic variable loan.
These are payments that you make which are above the standard repayment for your loan. So for example, a $300,000 loan with a 7% interest rate requires a monthly repayment of $2,120. If you want to pay the loan off quickly and reduce the interest bill, you might make monthly payments of $2,500, which would include an extra repayment of $380.
Allows your salary to be paid directly into your home loan account. This is an advantage if you are not a disciplined saver.
Allows the borrower to switch from a variable to a fixed rate loan.
Allows a borrower to increase the limit on a home loan, using the equity in your property for other needs (e.g. renovations).