Not all home loans are the same

Standard variable rates

Most of you fall for standard variable rates. Here, rates are commensurate to current financial position of Australia. This is overseen and regulated by RBA. Of course, personally you will also bear the brunt of deficit and get perks during boom. Thus, you have every chance of making regular payments if you are sincere.

Then there is a split variety where the first half is fixed and other variable. If you are in good shape initially but feel speculative about future, you should go for thus version. In case of long term homeloan actual payments more or less resemble general format.

Fixed type

Fixed rate home loans are for purists who know what they have saved and how much they will afford in future. They need monetary stability in every aspect and with fixed rates; you know exactly how to plan your payments. Your upfront and development fees are somewhat discounted here.

Hunt in packs

Then if you have a sizeable reputation and money, you can go for packaged home loans. Here you get exceptional facilities and are treated as valuable client of the bank or financial institution. Most of your extra charges are negated or made nominal. Yes, you have to pay an annual fee but if you are planning something big, you will do best with this loan.

For bad credit people

If you have a terrible credit history, you need to brush it up. There are certain institutions that are ready to provide loans (not very high amounts) to self-employed people and defaulters. You will pay lesser rates and with each credible payment enhance your status as a debtor. This comes good at a later stage when you require handsome homeloan.

Relief for starters

First time buyers may also look forward to honeymoon loans. Here, you get relief in the first year as it is understood that you will take time to settle. Since this variety encompasses quite a few couples, it is bank’s way to induce more clients.

Use your equity

 And you can also go for refinancing on your home equity. If you have got an immovable asset as inheritance, you can use it as collateral to attain home loans. With planning, you can also have refurbishments and home upgrade paid by banks.

Pay faster to reduce rates

Be always ready to pay more than you planned to. Foreclosing sections of home loans will get rates reduced and pressure released. You can also negotiate with banks for hoe loans if you have a credible plan in pipelines. Proper research and analysis may just drive them into your groove.

Be good with your documentation and if possible, keep connected with mortgage brokers. They will take their cut but show you the right way and institutions to head to for home loans.