Should I get a basic home loan or a package home loan?
❓ How do you know whether you should get a basic home loan or a package home loan? This can be a difficult question for many people especially if you haven’t had one before and you’re not sure what you need.
? Let’s start with what each loan type is:
– a basic home loan is a home loan with ‘no frills’ or no bells and whistles. It is a basic home loan at a low interest rate with lower fees
– a package home loan is a home loan that combines your mortgage with other banking services such as credit card, offset account and/or redraw facilities. There is usually a discount to the standard variable rate and fixed rate loans.
? Package home loans usually have an annual fee which covers the cost of the added features and package benefits.
? For a single loan on one property it is usually cheaper to go with a basic loan as the interest rate is usually more competitive and there are options with low establish costs and no ongoing fees.
? ? If you’re a property investor or are looking to purchase another property, you may need multiple loan accounts for tax purposes then a package home loan may suit you better.
?♀️ I’ve pulled together a list of things to consider when choosing a loan:
– What are my short and long term goals?
– How long am I planning to have this home loan?
– Am I getting a best Interest rate?
– Will I use the added facilities that come with a package home loan?
– Am I going to make extra repayments on my home loan?
– Am I good at budgeting?
– What fees and charges are payable?
If you’d like help working out what’s the most suitable loan for you, get a broker on your side.
Greater Geelong Finance has access to over 60 banks and lenders and will help find the right loan for your situation, all while working in your best interests.
?♀️Need help? Call Julie.
? 0437 095 312
? Julie@greatergeelongfinance.com.au
? https://greatergeelongfinance.com.au/
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