What Are the 5 Top Features of Modern Day Home Loans?


Modern-day home mortgages come with a wide range of features designed to help you manage your loan efficiently and pay it off faster than the standard 30-year term. Most people don’t have much understanding of how these features work and which one will work best for them. For Toowoomba home loans, you must contact a mortgage broker who can help you choose the right loan features and a loan product as part of their Preliminary Assessment. Scroll down and read the entire blog to know what these features mean and how they can benefit you.


Redraw 

Home loan redraw allows you the ability to withdraw any additional repayments made over and beyond the minimum loan amount. This is an excellent method to save for a vacation or a car by putting money in your loan account rather than your savings account. 


Interest only

You will only pay the interest payable each month throughout an interest-only period, not any of the principal. The advantage is that you keep your repayments to a bare minimum; however, you will not be able to pay off the loan unless you make additional payments. 


Salary Crediting

You can have your salary transferred directly into your loan account using this feature. This is most typically employed by persons who have a Line of Credit or are salary sacrificing their mortgage.


Loan Splitting

This feature enables you to have numerous loan accounts for your home loan in Toowoomba. People most commonly use this to set up a loan that is half fixed and half variable. This enables them to make additional repayments on the variable portion of the loan, but only to a limited extent, to protect themselves from rising interest rates.


Loan Portability 

You can switch your loan to another house if you have loan portability. This is typically used when selling a home and purchasing a new one. In most circumstances, settlements must take place on the same day in order for this to function. This can save you from having to apply for a new home loan when you relocate.


Hope, you came to know the 5 top features of modern-day home loans. If you like the content of this blog, don’t forget to share it with your friends, and get back to us for more exciting content!
Location: Toowoomba QLD, Australia

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