Best Home Loans

What is a home loan?

A home loan, also known as a mortgage, is money you borrow from a bank or lender to buy either a home to live in or an investment property. As one of Australia’s most awarded non-bank lenders, we offer a range of loan and mortgage finance options. Finding the cheapest home loan or the mortgage that best suits you and your family can be difficult. That’s why we are committed to providing you with the loan, product and service outcomes that are tailored to your exact needs.

There are two main types of home loans – owner-occupier and investment. An owner-occupier mortgage is for properties that will become a principal place of residence. An investment mortgage is for those looking to buy a property not to live in, but to rent out to others or renovate in the hope of making a profit when the property is sold.

How much banks and lenders charge in home loan interest rates can vary depending on what mortgage you choose and how much you want to borrow. There are two types of interest rates – a fixed interest rate and a variable interest rate. Finding the best home loan rates may come down to which of the two is most suitable for you.

  • Fixed interest rate. A fixed rate home loan is one where interest rates will be fixed for an agreed time, usually between 1 and 5 years. A fixed interest rate gives you the advantage of knowing exactly how much your repayments will be, which can really help with budgeting.
  • Variable interest rate. Variable rates tend to be lower than fixed rates for equivalent mortgages. Variable rates can increase or decrease over the life of the loan, depending on a range of internal and external factors, such as the cost of delivering the mortgage, the official Reserve Bank cash rate or the state of the national or world economies.

When you are doing a home loan comparison, home loan rates may not be the only thing impacting your decision. All home loans have a range of special features, such as the ability to make extra repayments without being penalised, or being able to offset the home loan interest rates with a non-interest-bearing bank account.

It’s important to ensure you look carefully at each mortgage you are considering. At Mortgage House we can help you in your search for the best home loan rates available, and the best features that suit you and your family.

Tips for selling your home in a slowing property market

How to get the best interest rate on home loans?

Whether you’re looking for the cheapest home loan rates or the features that suit you and your family, our Lending Specialists can be a great place to start.

We recognise the limitations of the loan and mortgage finance market. That’s why we are continually competitive with our interest rates and maintain a focus on offering diversity with our products. The end result is a level of customer service simply unheard of in the industry.

One way to get a great home loan rate is to ensure you have a suitable deposit. Deposits can vary across home loans, and in some cases there can be a trade-off between lower deposits and cheaper home loan rates.

The percentage of your deposit is called a loan-to-value ratio, or LVR. LVR is the difference between the price you bought your property for, and the deposit you put down. If you put down a 20% deposit, then your LVR will be 80%. It can also be calculated as you are paying off your mortgage. If you have paid 50% of your mortgage, then your LVR will also be 50%.

The higher your deposit is, the more chance you may have of being approved for a suitable, cheap home loan option. That can help you negotiate lower home loan interest rates, which can allow you to pay off your mortgage sooner.

However, if you don’t have a 20% deposit, and still want to get better home loan interest rates, a good place to start can be Lenders Mortgage Insurance or LMI. Whether you are looking for a variable or fixed rate mortgage, LMI can help you secure a mortgage without having the required deposit. LMI can allow you to choose more suitable home loan rates for you and your family, and you may also be able to borrow up to 95% of the value of the property you are looking to buy.

Another factor in finding the best interest rate for you is to make an educated call on a variable or fixed interest rate loan. Speak with our Lending Specialists to work out what interest rates may be most suitable for your property needs. Another place to find the best interest rate options for you is our Best Rate Mortgage Calculator. You can rank the best rates for all types of home loans, including variable and fixed interest rate mortgages, and full and low-documentation mortgages. All you need to do is enter the value of the property you want to buy, and how much you want to borrow.

When is the best time to refinance your home loan?

Having a regular home loan health check to see what else is out there and how it can benefit you is always a good move. With today’s technology, home loan comparisons are easier than ever before, enabling you to find the cheapest home loan options to choose from. While home loan interest rates remain low, there is a lot of competition out there to take advantage of. It may have been a while since you took out your current mortgage, so home loan rates may have reduced, and extra features may now be available.

There are a few personal circumstances that can trigger you to look into refinancing your home loan. An increased income is always a great place to start. If your income has increased since you first applied for your mortgage, and especially if a better job has seen it rise rapidly, then you may be able to track down a better deal that allows you to pay more on your loan. Banks and lenders also look favourably at people who have paid down any other smaller loans and paid off their credit cards. If you have a low credit card balance, then reducing the limit can also be a benefit to finding a more suitable mortgage.

When mortgages are first applied for, the lure of special features can be attractive. Even if you don’t need certain features now, it’s worth thinking about what you may need in the future. Some features can add cost to your mortgage and may impact your goal of finding the best home loan rates. If you find you’ve been paying for features you never use and are unlikely to use in the future, then switching mortgages can be a good idea.

If you have been paying off your mortgage for a while then it is likely you have built up equity. Whether you own an investment property or you are living in the home you purchased, equity can be a big benefit. Equity is the difference between how much your home is worth, and how much you still have to pay off. That equity can be a great place to start if you want to upgrade your home or refinance your mortgage to buy an investment property.

The longer you make loan repayments for, the more equity you are likely to have, assuming any redraw amounts have been kept to a minimum. You don’t have to change banks or lenders to refinance, especially if you are happy with the service.

Click on our Switching Mortgage Calculator to find out how much money you can save today. The switching calculator can weigh up all the available information of your current loan and the home loan you are looking to switch to. Make sure the information to add is as accurate as it can be, including whether or not you will attract any charges by ending your current mortgage sooner than expected. From there, the switching calculator will present you with an easy-to-understand graph comparing the two home loans, and a table outlining the possible differences in repayments.

How to choose the best home loan

Finding a suitable mortgage can be a big job, but it doesn’t have to be. The best place to start is with Mortgage House’s Checklists and Tips. We have a range of resources that can help you with your home loan comparison, such as Q+As on anything from bad credit home loans to stamp duty, to step-by-step guides that will be handy across your property journey.

Another important way to find a suitable loan is to use Mortgage House’s home loan comparison tool. You can choose up to five loans at a time to compare interest rates, features, repayment options and even fees.

Work with our expert team of Lending Specialists to prioritise your needs and goals and gain an understanding of all the options. Compare interest rates, ask about whether the loan you want allows you to make extra repayments without being penalised, and consider whether you want to use any savings to offset your home loan interest rates. These questions are just a few that can help you chose the most suitable mortgage for you and your family.

How to find the best home loan interest rates?

Once you know what kind of home loan you are looking for, you can compare interest rates with Mortgage House’s Best Rate Mortgage Calculator. It is simple to use and will give you an easy-to-understand analysis of all the Mortgage House home loans, both variable and fixed interest rate.

Simply enter:

  • Amount you want to borrow
  • Approximate value of the home you are looking to buy
  • Loan type
  • Rate type

The calculator will provide a simple table highlighting the interest rate, any fees, likely repayments and the comparison rate. All Australian banks and lenders have to advertise a comparison rate alongside their headline home loan rates. A comparison rate is a tool to give you an indication of how much the loan will cost you over its life, once fees and charges have been taken into consideration.

Mortgage House

At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.

But don’t worry, we can help with that. If you’re thinking of buying an investment property, you can contact us for information about the best options for you when it comes to your mortgage. Click here to speak to us!