Typical loan feature

There’s no perfect loan for everyone. However, there’s one perfect for you.

There are various loans out there, each with its benefits and drawbacks. The great thing is that lenders are more competitive than ever and are constantly refining their products and releasing new ones. The problem is, how do you find one that’s right for you?

Discover the perfect home loan consultant in Shellharbour to guide you every step of the way. We start by getting to know you and understanding your unique needs. Then, we explore tailored options to find the best fit. To simplify the process, we assist with paperwork and manage your application from start to approval.

Ready to take the next step? Let’s connect with home loan providers in Shellharbour and get started on your journey.

Here’s a guide to standard loan features and benefits

Obviously, all the features will not be available on every loan. You can let us know about the feature you may be interested in.

You only pay the interest on the loan, not the principal, usually for the first one to five years, although some lenders offer longer terms. Some lenders give borrowers the option of a further interest-only period. Because you are not paying off the principal, your monthly repayments are lower.

This is a savings account linked to your home loan. Money paid into the savings account is deducted from the balance of your home loan before interest is calculated. The more money you save, the lower your regular home loan repayments. You can often access your savings in the usual way, by EFTPOS and ATMs. This is one of the great ways to reduce your loan interest. Be aware that the account may have higher monthly fees, require a minimum balance, or have other restrictions.

Instead of a regular monthly repayment, you pay off your home loan weekly or fortnightly. This can suit people who are paid on a weekly or fortnightly basis and will save you money because you end up making more payments in a year, potentially cutting the life of the loan.

This typically allows you to access any extra repayments you have made. Knowing you have access to funds can provide peace of mind. Be aware lenders may charge a redraw fee and have a minimum redraw amount. There might also be other restrictions on when funds can be redrawn.

You may be able to take a complete break from repayments or make reduced repayments for an agreed period. This can be useful for travel, maternity leave or a career change.

If you pay more than the required regular repayment, the extra amount may be deducted from the principal. This not only reduces the amount you owe but lowers the amount of interest you repay. Making extra repayments regularly, even small ones are the best way to pay off your home loan quicker and save on interest charges.

Your lender automatically draws repayments from a chosen bank account. Apart from ensuring enough cash in the account, you don’t have to remember to repay.

This combines a home loan with a cheque, savings, and credit card account. You can have your salary paid into it directly. Keeping cash in the account for as long as possible each month can reduce the interest charges. Used with discipline, the all-in-one feature offers both flexibility and interest savings. Interest rates charged for these loans can be higher.

Home loans over a specific value are offered at a discounted price and discounted fees on other banking services. These can be attractively priced, but if you do not use the banking services, you may be better off with a primary variable loan.

If you sell your current property and buy somewhere else, you can take your home loan with you. This can save time and set-up fees, but you may incur other charges