Buying a house is probably the most exciting part of almost everyone’s life. Understanding key home loan features like flexible repayments, offset accounts and redraw facilities can help Melbourne buyers save money and pay off their home loan faster.
But at the same time, it can be one of the most stressful times that you have to go through, starting from finding the right property to making important financial-related decisions.
While low-interest rate is undoubtedly one of the most significant parts of a home loan, there are plenty of other beneficial home loan features available that can make a big difference and even save you money over time.
In this blog, we’ll run you through the top 3 features of home loans that you should be taking advantage of:
Flexible Repayments
One of the great ways to pay off your home loan faster and ultimately save on interest is by making extra repayments on top of your regular scheduled payments. Whether it’s ongoing or a one-off lump sum money, getting the flexibility of making additional repayments on the mortgage is something that every home loan borrower should consider.
Therefore, ensure to speak to your lender first to know about their terms and conditions regarding flexible repayment options.
Offset Account
Typically, an offset account is like a transactional savings account linked to a home loan that allows you to deposit and withdraw funds. Any money you carry in the offset account is measured against your home loan balance, meaning you’ll be charged less interest. As a result, you can save thousands of dollars over time.
Redraw Facility
If you have made any additional repayments to your home loan, a redraw facility lets you withdraw funds from those extra repayments, should you need the cash. A redraw facility provides you with a ready reserve of funds, but sometimes, it isn’t as immediately accessible as money in offset accounts. In some cases, it may take more than one day to withdraw the funds. Remember to use it only for a bigger cause.
For more general information on how home loan features work, the Australian Government’s MoneySmart guide to home loans provides helpful explanations and comparisons.
Book an Appointment With a Home Loan Expert in Melbourne, Richmond and surrounds
Getting a home loan doesn’t have to be complex. With the right advice and expert guidance, you can get a good home loan deal with all the required features. If you need help finding the right home loan offer according to your personal and financial requirements, Lend & Co is here to help.
We have an experienced team of home loans specialists in Melbourne, Richmond and nearby areas can guide you through your options and help secure the right property loan for your needs.
If you’d like to take advantage of some of the great home loan features and benefits, contact us today at 1300 161 516.
