Home Loans

Buy your First Home, Next Home or Dream Home sooner with a Home Loan

Securing a Home Loan is a significant step, and having a plethora of Home Loan options at your disposal is crucial to ensuring you make an informed decision. Our access extends to an expansive range of Home Loan products from lenders nationwide, including prominent banks, credit unions, and building societies. We stand by our clients from start to finish, handling the heavy lifting all the way to settlement, ensuring you secure the most competitive interest rates available for your Home Loan and helping you navigate through cash-back offers.

Understanding the characteristics of various Home Loan Options is key:

• Principal and Interest: This conventional loan type entails repaying not only the interest on the sum borrowed but also part of the principal amount itself, gradually reducing the overall loan alongside the interest.
• Interest Only: Opting for an interest-only Home Loan means you'll pay just the interest on the loan amount for a set term, typically up to 5 years. Although this can lower immediate outgoings, the principal amount remains undiminished during this period.
• Variable Rate: Variable rate Home Loans are subject to interest fluctuations based on economic shifts, offering flexibility and the potential for lower interest rates, albeit with variable repayments.
• Fixed Rate: Choosing a fixed-rate Home Loan locks in your interest rate for a specified term, usually between 1 and 5 years, enabling consistent repayments and aiding in budget planning.

We are honoured to be affiliated with the Mortgage and Finance Association of Australia and support clients across the breadth of Australia. If a Home Loan is what you're after, our expertise and years of experience will guide you in finding the ideal solution tailored to your unique situation.

Understanding the Home Loan Types

Navigating the different Home Loan options can seem daunting, but understanding the basics is a great starting point. At Capitalise Money we're experts at helping with Home Loans and as a starting point, get to know the main types of Home Loans available to help you make an informed decision.

Owner-Occupied Home Loans:
Designed for Australians who plan to live in the property they are purchasing, Owner-Occupied Home Loans generally offer more favourable interest rates compared to loans for investment properties. They are crafted to suit the unique needs of homeowners, providing various repayment terms and features such as redraw facilities or offset accounts to enhance financial flexibility.

Interest-Only Home Loans:

Interest-only Home Loans permit borrowers to pay merely the interest component for a predetermined period, typically spanning one to five years. During this phase, the principal amount of the loan remains constant. Although this option may offer lower initial repayments, it's crucial for borrowers to be mindful that they will need to commence principal repayments eventually, potentially increasing future repayments.

Principal & Interest Home Loans:

These loans require borrowers to make regular payments that cover both interest and a segment of the principal amount. This results in the gradual decrease of the outstanding loan balance until it's completely repaid. Principal and Interest Home Loans are often the go-to choice for long-term financing, giving borrowers the peace of mind that they are progressively diminishing their debt.

Variable Rate Home Loans:

With variable rate Home Loans, the interest rate can change throughout the loan term based on movements in the official cash rate set by the Reserve Bank of Australia (RBA) or market conditions. This option could provide savings through potential interest rate declines, though borrowers should also be prepared for the possibility of repayment increases due to rate hikes.

Fixed Rate Home Loans:

Fixed Rate Home Loans allow borrowers the certainty of knowing their interest rate and monthly repayments will not change for a specified period, usually one to five years. This stability protects against interest rate variations; however, it also means borrowers won't benefit from interest rate drops during the fixed term.

Bridging Loans:

Bridging Loans are short-term solutions designed to assist borrowers in purchasing a new property before the sale of their current one. They fill the financial gap between buying and selling, offering immediate funds for a new property purchase while waiting for the old one to sell. Given their typically higher interest rates and potential additional fees, it's important for borrowers to carefully evaluate their finances before considering a bridging loan.

Understanding these fundamental Home Loan options can significantly demystify the mortgage process, enabling you to choose the most suitable type for your circumstances.