Home Loans Advice

You have just had a successful meeting with your real estate agent. Your agent has shown you the home that you have always pictured your self living in since a long time now. The drive way to your future home is lined with the most amazing and vibrant flowers and shrubs. The structure of your home is very traditional and as per your taste. All the rooms are spacious and you can actually picture you in your living room or the kitchen having a good time with your family. The front-yard and the back-yard is humongous; big enough for a barbeque or even having a lavish party. In short, your future home has all the elements of 'Home Sweet Home.'

Eligibility for Home Loans

• First and foremost you need to be 18 years and above for applying for a home loan.


• You will also need to have an income to show to the lender that you are capable of paying them back.

These are the two basic requirements that are universal. Then depending on the kind of home loan you opt for the requirements may differ.

Types of Home Loans

Usually there are two fundamental types of home loans; variable rate home loan and fixed rate home loan.


Fixed Rate Home Loan

Following are some of the features of the fixed rate home loan.

• This particular type of home loan has a fixed rate of interest and also a fixed term in which you will need to repay the loan. However, the term varies from anywhere between one and five years.


• After the term expires you are at free will to renegotiate it for another fixed term or then transfer it to a variable rate home loan.


• The repayments that you need to pay are also fixed for the pre-determined period.


• In some cases you also have the option of repaying only the interest or then the interest and the principal amount together.


• If you opt for an early repayment of the home loan, you may have to incur additional costs.

Variable Rate Home Loan

The features are as follows;

• It is known as a variable rate home loan as the rate of interest can change in the term of the home loan as per the economic conditions.


• You can opt to make the repayments weekly, fortnightly, or then even monthly.


• In this home loan, the maximum period you can take a loan is for thirty years.


• The calculation of the interest is done on a daily basis. It is done on the outstanding balance of your loan amount daily and is then added to your account every month. If you were to make any additional repayments, then they would definitely help you.

For more on home loans, check out our other pages,

Home Purchase Loans

Home Refinance Loans

Home Equity Loans

Home Loans Australia