Discover tailored first-home buyer loan options in Australia. Choose the right loan based on your financial needs and goals.
Low Deposit Home Loan
A low-deposit home loan is perfect for those with a smaller deposit, typically around 5-10%, allowing you to enter the property market sooner without needing to save a substantial upfront deposit.
Key Benefits:
Get into the market with a lower deposit
Potentially avoid years of additional saving
Ideal for those eager to buy but with limited savings
Family Pledge Loan
A family pledge loan allows a family member to use the equity in their home to guarantee part of your loan. This can reduce your deposit requirements or help avoid Lender’s Mortgage Insurance (LMI).
How it Works:
A family member, such as a parent, offers their home as security.
Over time, as you build equity in your home, you can release your family member from this responsibility.
Guarantor Loan
A guarantor loan is another option for first-home buyers whose family member can use their property as security. This loan helps you avoid a higher deposit and LMI, with the potential to secure a better interest rate.
Key Advantages:
Reduced deposit requirements
Potential to avoid LMI
Possible access to better loan terms
Variable Rate Home Loan
With a variable rate home loan, your interest rate fluctuates with market conditions. This means your repayments could be lower when rates fall, but they may increase if rates rise.
Pros:
Benefit from reduced repayments when rates are low
Flexible features like extra repayments and redraw facilities
Fixed Rate Home Loan
A fixed rate home loan offers stability by locking in your interest rate for a set period, usually between 1 and 5 years. This allows for consistent repayments, making it easier to budget.
Key Features:
Protects against rate rises during the fixed term
Certainty in your repayments
Fixed terms typically range from 1 to 5 years
Split Rate Home Loan
A split rate home loan allows you to divide your loan into fixed and variable portions. This gives you the stability of fixed repayments and the flexibility to take advantage of potential rate drops on the variable portion.
Benefits:
Combines the certainty of fixed rates with the potential savings of variable rates
Flexibility and risk management in one loan
Interest-Only Home Loan
An interest-only home loan lets you pay only the interest for a set period, usually 1-5 years. This reduces your initial repayments but increases the amount paid over the life of the loan.
Best For:
Investors or buyers seeking lower repayments during the initial years
Maximizing cash flow in the short term
Construction Loan
A construction loan is ideal if you’re building a new home or undertaking major renovations. The loan is paid in stages, corresponding with the progress of your construction project, ensuring you only pay interest on the amount you’ve drawn down.
How it Works:
Payments are made in stages, aligning with construction milestones
Interest is only charged on the portion of the loan that’s been drawn down
DISCOVER MORE >
Is a First Home Buyer Loan right for you?
Talk with one of our business finance experts who can guide you through the process and help find the best solution tailored to your needs.
Call us on (02) 8313-8400 or request a call back.
Komentarze