Here is an explanation of some of the most common types of home loans you are likely to encounter. There are a number of different types of home loans or mortgages available in Australia, and the type best-suited to you will depend largely on your personal circumstances and preferences, including why you are taking out a home loan. What are the different types of home loans in Australia? You can find out more about the annual price growth in each of the nation’s major market jurisdictions in Canstar’s Rising Stars Report. ![]() The inner-city areas of our major cities and regional markets like the Gold Coast and the Sunshine Coast are all feeling their strengthening trend. Increasingly, we are seeing examples of locations where units have outperformed houses on annual price rises and/or on long-term capital growth. Down-sizers, first-home buyers, affordable lifestyle-seekers and migrants accustomed to apartment-style living are among the cohorts that have lifted demand in locations where units dominate the dwelling mix. Throughout 2023 more and more buyers opted for units and townhouses, for lifestyle, location and affordability. The land content is deemed to be the key factor. One of the dominant paradigms of Australian real estate is that houses provide better capital growth than apartments. The dominant paradigm in real estate is changing, apartments are challenging You could even lock in a rate cheaper than the current variable rates and score some instant savings. Most let you make extra payments during the fixed term and even link an offset account to the home loan. The good news is, they’re more flexible than they used to be. If you prefer a steady ship, a fixed-rate loan might be up your alley. ![]() This straightforward adjustment can maximize your savings over time. With 26 fortnights in a year, you end up making 13 payments annually instead of the standard 12. ![]() Here’s the trick: take your monthly repayment, halve it, and pay that amount every two weeks. If spare cash isn’t readily available, a simple yet effective strategy is to switch from monthly to fortnightly payments. Take advantage of this fact because even a small reduction in the daily balance can make a meaningful impact on both the term of the loan and your interest bill. The most important thing to know about home loans is that interest is calculated on the daily balance and charged to the loan account monthly in arrears. Home loan tips from our experts Effie Zahos, Canstar Ambassador & Money Expert Investsmart
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