Step 2 - Home Finance

LOAN TYPES

After working out your budget you should now be aware of the amount you can afford to comfortably pay in home loan repayments and the amount you should have available to pay as a deposit.



What you need to do now is to research the types of loans, loan fees, lenders and lending requirements to determine what loan will be right for you.

There are many lenders in the market place, each making all sorts of offers however the basic loan types are:

Principal & Interest

Interest only

Split loan with both Interest only and Principal and Interest components.

These loans can be (depending on the loans offered by the particular lender)

Fixed Interest

Variable Interest

Split loan with variable and fixed components

The most common type of loan, especially for first home buyers is a principal and interest loan.

One of the best places to start your research is on the internet and many sites will provide useful comparison tables of fees, rates and types of loan offered.

When you have seleted some lenders whose products are likely to suit you - move on to choosing a lender


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