Getting the right home loan with the best interest is a fundamental step to successful home buying. Without a home loan and interest rate that is ideal for you the event of owning a home or investment can be more of a financial burden than a step to financial success.
This is why it is important to ensure you take this very important step seriously. When it comes to home loans it is not necessarily always a one size fits all. The type of home loan or interest rate that is perfect for one, may not be for another.
When you get in touch with our specialist team at Prudential Real Estate you will be impressed by our attention to detail, to your needs and to our extensive services, which include putting you on the right path to finding the best home loan for your purchase.
In order to make an informed choice about getting the best interest rate, it helps to understand the types of loans available to you as the interest rates and timeframe can change with each.
With an introductory loan lenders offer a lower rate to new borrowers for a set time on the loan, for example, the first year. Following this period the standard variable rate takes effect on the loan.
With a standard variable loan the interest rate and repayment amounts can vary. This is the more flexible style of loan and usually has a redraw facility. There is also the option to fix the rate for a set period.
The basic variable is a no frills loan. If you’re really set on the lowest interest rate then this is the loan for you but there are little to no features.
Fixed rate is where the rate is fixed for a period of time and then after this point the loan can change back to the variable rate or a new rate can be agreed upon and fixed.
There are more loans available to you than the ones mentioned above and with each lender the details can change slightly. It is good to keep in mind that sometimes going for the lowest interest rate is not necessarily the best rate to go for.
This is because there are always other benefits and downfalls in a loan to consider if this makes the rate high, or low specifically to your needs.
You can compare and find the best rate for you by researching online, using mortgage calculators and comparison tools. Talking to your lender about the different options available of course is also a must.
For more information on the homes available contact our Prudential Real Estate office today.