List of Home Loan Features You Need to Know

This question is best answered depending on your personal circumstances. With a fixed rate home loan, the interest rate is set by the lender for an agreed period of time. This means that your repayments will stay the same over this period even if market rates change. However, choosing a variable rate may mean lower initial payments due to lower current market rates but they are subject to change depending on the economic climate and could increase at any point in time.

The interest rate offered by lenders on your home loan depends on several factors. This could include your credit score and history, your current debt-to-income ratio, and the size of the loan you’re applying for. Different lenders also offer different rates based on their own risk assessment policies and competitive strategies. Your lender may also offer discounted interest rates if you are able to make larger deposits when taking out your mortgage or choose certain features such as an offset account or redraw facility.

Your borrowing capacity depends on several factors such as family size, income level and expenses along with savings history and credit scores. Typically, lenders will consider up to 95% of the property value (including costs associated with purchasing) when deciding how much money can be borrowed but this varies according to borrows’ financial situation and lender policies.

An offset account allows borrowers to ‘offset’ their mortgage balance with their own savings. This reduces the amount of interest charged on the mortgage over time and therefore reducing overall repayments significantly in some cases. Borrowers also avoid paying taxes on unused savings sitting in an offset account while still having access to those funds whenever necessary.

So yes – an offset account can be very beneficial if used wisely!

Making additional payments above those required by your monthly repayment schedule helps reduce total borrowing costs. It also shortens the length of time it takes for your mortgage balance to be paid off completely. In some instances, lenders offer a redraw facility, allowing borrowers access these extra payments when needed without incurring any fees. It’s worth checking whether this option applies before making additional payments into your loan. This is in case you might need that money back before repaying your entire mortgage deb.

Exit fees are often charged by lenders when early termination or refinancing occurs. This is during specific periods, such as during introductory offers or within certain years after taking out a particular product. Exit fees vary between lenders. However, it usually cover part or all costs associated with providing services such as processing legal documents during refinancing or early termination processes.

No. Different lenders may offer different features, despite there being basic similarities like access o payment options and so on. It’s important for potential borrowers to compare offerings from various sources before committing to one particular product. All lenders have unique products tailored to different target markets.

If during any given year you need to access additional funds beyond what has already been approved via their current mortgage, then one has two primary options. You can look at refinancing/restructuring your existing debt obligations via another lender. Alternatively, you can try utilising existing facilities provided by their current lender such as redrawing funds back from previously made excess payments.