Got your head in the land of home loan shopping? Or about throw yourself into it? Here are some features that you might like to look for to find the right match for you.
- Additional payments - Making extra repayments on your home loan can lessen the amount of interest you pay and help you pay your mortgage off sooner. Some basic and fixed rate home loans won’t have the flexibility of making additional payments without it costing you. If you think you might be able to get ahead on your home loan, make sure you choose an option that allows you to make proactive payments on top of your regular repayments.
- Redraw - Many loans, like Bank Australia’s, allow you to redraw (take out) any additional funds that you’ve paid on your home loan. Choosing a loan with a redraw facility can be particularly helpful for renovations or other major expenses that life throws at you. Depending on your loan, there may be fees or a minimum amount associated with your redraw – so check the fine print.
- Mortgage offset – Check whether the home loan has a mortgage offset feature. A mortgage offset helps reduce the amount of interest you pay. How? Instead of charging interest based on the full loan amount, it takes into account money you have in other bank accounts linked to your home loan.
- ‘Pause’ options - Some loans have additional features and benefits that can match your needs, including the ability to pause your repayments for different circumstances. At Bank Australia, we have an eco-pause and a family pause. Our family pause can provide some breathing room when you are welcoming a new family member to the world while our eco-pause gives you the option to redirect funds for environmental home upgrades, such installing solar panels.
- Positive impact - Your home loan is likely to be one of the biggest investments you will ever make. Not only will it help you buy a property, it can make a big difference in the world. Just like every dollar you deposit into a savings account, every dollar you borrow and the interest you pay, goes somewhere and is used for something. Where it goes and what it could be buying or supporting depends on the bank. If you want your home loan to reflect your values, ask the bank that you are looking to borrow from what it lends to and invests in. If the answer includes industries that cause harm to people or the planet such as fossil fuels, weapons, tobacco and gambling, chances are that your home loan will contribute to those investments.
At Bank Australia we promise your home loan will never support industries that harm people or the planet.