Choosing a home loan is one of the biggest financial decisions you will make. Understanding the main options helps you ask better questions.
The main loan types
- Fixed rate: repayments stay the same for a set period
- Variable rate: repayments move with the market and often allow extra payments
- Split loan: part fixed and part variable for balance
Questions to ask your lender
- What are the ongoing fees and the comparison rate?
- Can I make extra repayments without penalty?
- Is there an offset account or redraw facility?
- What happens when the fixed period ends?
A broker can compare options across lenders. Take your time, and choose the structure that fits your plans, not just the lowest headline rate.