Home loans and mortgages are offered to a wide variety of different people to help them when buying a house, flat or any other type of property. They are one of the most popular ways of securing the additional finances you need to make such a big investment. It is important to note that when taking out this type of loan you will need to pay back an extra fee on top of what you have borrowed. You get the added benefit of being able to make smaller repayment amounts at a later date, and this is often the greatest deal for most people, as it makes payments more manageable. There are various different types of home loans available, yet it all really comes down to the bank you borrow the money from. Let’s take a look at the various types of home loans banks offer below.
Different types of home loans
1. Fixed rate home loan– With this type of home loan there is the advantage that you don’t have to worry about interests going up, as you will pay a fixed amount for a set period of time. This can provide certainty and make it a lot easier for you to manage your finances. Not only that, you will find that you can acquire up to 95 per cent of the loan. This is a popularoption. You can acquire this service over the Internet as well. For home loans, visit Newcastle Permanent.
2. Real deal home loan – This loan has its own special features. You can acquire the loan up to a maximum of 95 per cent and it offers a reduced interest rate of 0.25 per cent p.a. for the first three years. After this, the loan regains its normal interest percentage.
3. Introductory Discounted Variable Rate Home Loan – This type of loan offers you a reduction in repayment for the first year and afterwards reverts to the normal interest rate. This makes payments easier to manage in the first year, giving you a bit of extra time and cash to start off with.
4. Premium Variable Home Loan–If you desire a variable interest rate but you are still interested in additional features, this is a great option to consider. Furthermore, you can also acquire this loan for up to 90 per cent of the actual home amount.
5. Real Options Home Loan – With this type of loan there are varying interest rates. However, you have the advantage of not needing to worry about any extras, such as accounting fees.
6. Real Equity Credit Facility – This is a variable credit facility, which is secured against your property, so that you can access your equity directly.You can then use this equity in order to help you build your wealth. There are no charges or establishment fees and this loan acquisition is up to 90 per cent of your home.
7. Premium Plus Package – This offers one of the lowest home loan interest rates with an innumerable amount of benefits along with it. You can borrow up to 90 per cent of your home and repayments can be made at any given time within the specified period.An experienced and dedicated bank should have the capability to offer these various home loan services.
To conclude, it is very important for you to know the type of home loan you are interested in, the amount you want to pay by the end of repayment and for what specified period you need it. This will help you to narrow down your choices and get the loan that is suitable for you.