40-Year Loan Terms: Are They Right for Me?
When homes on the Australian housing market cost $150,000, the conventional mortgage became the financing standard. As homes became more expensive, it became clear that fewer Australians could afford the price tag. Then, the housing crisis hit and the public became wary of variable-rate mortgages.
Nonetheless, many renters aim to become homeowners. Plus, the government wants its population to own property too. For several years, lenders reserved the 40-year home loan for special circumstances. Homeowners who find themselves in financial trouble could extend the length of their mortgages.
In 2022, first-time homebuyers can obtain a mortgage that has a 40-year loan term. The longer the loan, the less the monthly repayments. However, this means that the homebuyer pays more in interest rate charges.
Mortgage House is a non-bank lender. Thus, we have more freedom than banks to issue loans. We work with first-time homebuyers, second-home buyers, and investors. Plus, we issue renovation and consolidation loans. If you seek a mortgage with a 40-year term, we take a look at your options. To turn you into a homeowner, it could work. Then, once you build home equity, we can assess your financial circumstances again. You might qualify for a better mortgage down the road.
For more information about repayments, try our online mortgage repayment calculator with no strings attached.
40-year Home Loan Conclusion
A 40-year home loan offers benefits to homebuyers who require an alternate option to the conventional mortgage. To start the process, contact Mortgage House today.