When considering a home loan, the variety of features and options can be overwhelming; that’s why we’re here to streamline the process. A comprehensive comparison of these features can help you make an informed decision that aligns with your financial goals and lifestyle needs. To get started straight away connect with the M Finance team, otherwise read on to learn more.

Here are some key loan features to consider:

• Pre-approval: A formal indication from a lender about how much you can borrow, based on your current financial position. Helps to accelerate the buying process and gives you peace of mind knowing what you can afford to borrow.
  
  
• Interest Rate:Choose between fixed, variable, or split interest rates. Fixed rates offer stability and certainty of payments for a set period (but there are possible penalties if you break a fixed rate). Whereas variable rates provide flexibility and the ability to pay extra without incurring penalties. We could also explore split loans which allow you to enjoy the benefits of both.
  
  
• Repayment Flexibility:Some loans offer the ability to make extra repayments without penalty, which can reduce the interest you pay over the life of the loan.
  
  
• Offset Accounts:An offset account can reduce the amount of interest you pay, as it offsets the balance of your home loan against the balance in this offset account.
  
  
• Redraw Facility:Allows you to access any extra repayments you have made on your loan, providing flexibility in managing your finances.
  
  
• Fees and Charges:Be aware of application fees, ongoing fees, and any penalties for early repayment or extra repayments. Understanding these can help you save money over the life of your loan.
  
  
• Loan Top-Up Options:Some loans offer the ability to increase the borrowed amount, which can be useful for renovations or other significant expenses or purchases.
  
  
• Lender’s Mortgage Insurance (LMI):If you have less than a 20% deposit, you may be required to pay LMI. However, some schemes allow first home buyers to avoid this cost if you qualify and scheme spots are still available. Certain professions (such as medics, lawyers, accountants etc) also can receive benefits from some special bank offers.
  
  
• Loan Portability:This feature allows you to transfer your existing loan to a new property, reducing the number of steps needed when compared to opening a brand-new loan product.