Fixed Home Loans

Has mortgage jargon left your head spinning? Cut through the confusion with this easy to understand guide that explains the common features of a mortgage & how they can help you to repay your loan sooner!

Redraw

Loan redraw gives the borrower the power to withdrawal any additional repayments to which were made on top of their minimum loan repayment. Eg If the borrower has been making an additional repayment of $100 on a monthly basis, then after 12 months they will be able to redraw $1,200. Note that the borrower is not restricted by the 12 months duration before they can redraw. However, please be advice that some lenders may charge a fee for loan redraws and in the case of fixed rate loans, redraw is not available.

By: Mark Cunningham

The question of whether to get a fixed rate or a variable rate loan is always a vexing question. Should I fix or not? Should I get a fixed rate for three years or five years? Maybe 10 years? These are questions that are always asked when buying property whether you’re an owner-occupier or an investor. More recently, 30-year mortgages have come on to the market. The reasons for this are clear; a 30 year mortgage affords the buyer lower monthly repayment terms. Moreover, fixed rate home loans offer the borrower certainty as to the size of repayments.