Buying a home is a dream come true for all and it is a big commitment. Living in one’s own homes is a desire that every renter has, and if you follow our steps, it is easy to achieve your dream. Always remember to pay off your debt faster you need to ensure that you are on track in paying the loan month after month and ensure you are always on the best deal.

We will first get to understand your personal goals and circumstances and then provide you with a recommended shortlist of home loans Melbourne that matches your criteria.

There are many factors that can affect the interest rates such as the Reserve Banks Cash rate and the flow on effect of each lenders rate. However, there are factors that are under our influence, and we can control it. Some of these are:

Principal Amount: The loan amount that you borrow will have a major influence on your repayments. It is as simple as the more you borrow, the more you end up paying as interest. 

Purpose of the Loan: The interest rates are different for owner occupier and investment property home loans. Usually, the rates are lower for owner occupier.

Variable vs Fixed: When you fix your home loans in Melbourne, your interest is locked or fixed for a set period. For a fixed loan you may not have options to pay back the loan faster. However, for a variable loan you can make additional payments into the loan and hence reduce the loan faster.

Principal and Interest vs Interest only loans: When we choose to pay off both Principal and Interest, we end up having comparatively higher repayment amount as you pay off a portion of the principal amount along with the interest. For Interest only loans, your overall loan amount does not reduce as you are only paying interest every month. The benefit for this arrangement is you end up having lower repayments at any given month during this arrangement. What you should remember is, with this interest only arrangement, you may end up paying more interest over the life of your loan.