Do Banks Still Offer Interest-Only Mortgages?
Australian homebuyers can borrow funds to purchase properties from a few lender types. Banks hold the bulk of Australian mortgages. Therefore, they remain the lender most Australians consider for mortgages. Others exist too including credit unions, lending societies, and non-bank lenders. Mortgage House is a non-bank lender. We specialise in interest-only home loans too.
Banks offer interest-only mortgages but they remain conservative in their lending practices. They ensure that homebuyers understand the risks. For example, the homeowner pays more interest over the life of the mortgage. This makes it more expensive. In some ways, it makes the home loan longer.
Mortgage House understands that some homebuyers have limited employment and credit history. Plus, they don’t have a 20% deposit saved. Therefore, becoming a homeowner poses a challenge. Sometimes an alternative mortgage such as the interest-only option becomes the best way to become a homeowner.
Our loan specialists have tools to help homebuyers make the best financial choices. After applying, our loan specialists receive a better picture of the applicant’s current financial circumstances. Then, they match their financial circumstances and goals to the best home loan product.
Banks remain conservative because they also deal with customer deposits. Thus, they cannot take risks on mortgages. Mortgage House balances risks with rewards thanks to our innovative tools such as our home loan calculator.
Interest-Only Mortgages and Banks Conclusion
Banks do offer interest-only mortgages. They place stricter requirements on their lending practices. Mortgage House gives our loan specialists tools to efficiently evaluate all applications. To start the process, contact our team today.