Typical Loan Features
Our Guide to the different Loan Features to help you understand what you're looking for
There are so many different loans out there, each with it’s own benefits and drawbacks. The great thing is that lenders are more competitive than ever and are constantly refining their products and releasing new ones. The problem is how do you find one that’s right for you?
You have to know where to look. And that’s what a broker is here for. We’ll speak to you first to get to know you and get a better understanding of your needs. And then we look at options that suit those needs, to choose one that’s right for you. And then, to make it even easier, we’ll help you take care of the process. We’ll help take care of the paperwork and manage the application process right through to approval.
When you’re ready, why not talk to a broker about your next steps.
Of course, not all of these features will be available on every loan. You can ask us about any that interest you.
You only pay the interest on the loan, not the principal, usually for the first one to five years although some lenders offer longer terms. Some lenders give borrowers the option of a further interest-only period. Because you’re not paying off the principal, your monthly repayments are lower. These loans are especially popular with investors who pay off the principal when the property is sold. This strategy is usually reliant on the property having achieved capital growth before it is sold.
If you pay more than the required regular repayment, the extra amount may be deducted from the principal. This not only reduces the amount you owe but lowers the amount of interest you repay. Making extra repayments regularly, even small ones, is the best way to pay off your home loan quicker and save on interest charges.
Instead of a regular monthly repayment, you pay off your home loan weekly or fortnightly. This can suit people who are paid on a weekly or fortnightly basis, and will save you money because you end up making more payments in a year, cutting the life of the loan.
This typically allows you to access any extra repayments you have made. Knowing you have access to funds can provide peace of mind. Be aware lenders may charge a redraw fee and have a minimum redraw amount. There might also be other restrictions on when funds can be redrawn.
You may be able to take a complete break from repayments, or make reduced repayments, for an agreed period of time. This can be useful for travel, maternity leave or a career change.
This is a savings account linked to your home loan. Money paid into the savings account is deducted from the balance of your home loan before interest is calculated. The more money you save, the lower your regular home loan repayments. You can often access your savings in the usual way, by EFTPOS and ATMs. This is a great way to reduce your loan interest, as well as eliminate the tax bill on your savings. Be aware the account may have higher monthly fees or require a minimum balance or have other restrictions.
Your lender automatically draws repayments from a chosen bank account. Apart from ensuring there is enough cash in the account, you don’t have to remember to make repayments.
This combines a home loan with a cheque, savings and credit card account. You can have your salary paid into it directly. By keeping cash in the account for as long as possible each month you can reduce the interest charges. Used with discipline, the all-in-one feature offers both flexibility and interest savings. Interest rates charged for these loans can be higher.
Home loans over a certain value are offered at a discounted rate, combined with discounted fees on other banking services. These can be attractively priced, but if you don’t use the banking services you may be better off with a basic variable loan.
If you sell your current property and buy somewhere else you can take your home loan with you. This can save time and set-up fees, but you may incur other charges.
Michael was recommended to us by a family member, and our experience of working with him has been great too. He is very honest, knowledgeable and responsive. He was so helpful in explaining things and definitely made the process of securing our first mortgage and home easy. We have and continue to recommend Michael/Rainey Financial to others.
Kelsey Tindall
Michael helped us into our first home, maintaining a high level of contact and transparency through the process. Helping us successfully navigate a few self-induced hiccups along the way, we were grateful that we used not only a broker in general, but specifically Michael.
Mitch Lacey
Michael and his team were an absolute pleasure to work with. Pro-active and quick to respond, Rainey Financial helped to get us a great rate and removed a lot of the stress from the process. I highly recommend them to anyone looking to secure a home loan. Victor W
Victor Wroblewski
Have gone through Rainey Financial to refinance multiple times and have never had any issues with the team. Always have the time to go through questions we have and got us some really competitive rates. Will be using Rainey Financial again in the future and would highly reccommend.
Grant Deacon
Absolutely fantastic and thorough service! I wouldn't hesitate to recommend Michael to anyone.
Ben Cropley
THANKYOU!!! This process started off very daunting to me being a first home buyer. However, after talking to Daniel I instantly felt at ease. Every step of the way Daniel and Megan went above and beyond to explain each step of the process and give me estimated timeframes of what the next steps would be. If I was ever in doubt, they were both only a phone call away. I am truly grateful; I couldn’t recommend the team highly enough at Rainey Financial.
Lauren Murphy
We’re all unique when it comes to our finances and borrowing needs. Contact us today, we can help with calculations based on your circumstances
You can see us at any stage in your financial journey. You might still be saving for your first home, wishing to use the equity in your current one, or wondering if you’re still getting the right deal with your existing lender. You can make an obligation-free appointment with us at a time and place that suits you.
We will ask about your financial circumstances and objectives to find out what’s important to you in a home loan. For example, flexibility might be important because you plan to start a family or you may want ready access to equity for a rental property or renovations. Whatever your plans, we will research the market and recommend the right home loan to suit your needs. We always look for the right loan for you, not the lender.
This is a grant available to Australian citizens or permanent residents who wish to buy or build their first home, which will be their principal place of residence within 12 months of settlement. Contact us directly to find out more about eligibility requirements in your state and how much grant money you could receive.
Now is always a great time to shop around or check that you have the right loan for your needs. We’re a great starting point. It will depend what interest rate you’re currently paying, what type of home loan you have (e.g. fixed, variable, interest only, line of credit) and what features you want in your loan. We can quickly explain your options.
Go to our Repayment Calculator for an estimate. Because there so many different loan products, some with lower introductory rates, talk to us today about the deals currently available, we’ll work with you to find a loan set-up that’s right for you.
Depending on your loan, penalty fees could apply if you’re paying off your current mortgage early. But these may be offset by repayment savings when you switch home loans. We’ll walk you through any fees that could apply in your circumstances.
Most lenders offer flexible repayment options to suit your pay cycle. Aim for weekly or fortnightly repayments, instead of monthly, as you will make more payments in a year, which will shave dollars and time off your loan.
This is one of the reasons some people refinance. The advantage is that you pay a much lower interest rate on a mortgage than for most other forms of debt – e.g. credit cards, overdraft facilities, personal loans etc. Providing you have sufficient equity in your property, you may be able to consolidate all your debt on a home loan. If you take this option though it is important to make sure you maintain your repayments of the debt that you consolidate at their current level, or you could easily end up paying more over a longer period of time. Speak with us today to discuss your personal needs.
A mortgage broker is someone who shops around for the home loan that’s right for you. Whether you’re in the market for your first home or building a portfolio of investment properties, we have access to hundreds of loans from a host of Australia’s leading lenders.
Rainey Financial Pty Ltd ABN: 44 652 171 474. Credit Representative #1296045 is authorised under Australian Credit License #0000000
Disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
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