Low Interest Home Loans
It’s easy to see why low interest home loans are one of our most popular loans. The Low Frills Loan has the lowest running costs because it has fewer extras. The good news – you pay a lower mortgage interest rate compared to most other home loan options and can save extensively on repayments.
There are distinct advantages and disadvantages to this form of cheap home loan. Naturally, as the name suggests, the interest rate is consistently lower than traditional loans, however, as the interest rate is variable you will be vulnerable to the range of fluctuations we experience in Australia. This may go in your favour and it may not and is a consideration and a risk that you need to weigh up.
The regular repayments of low rate home loans can assist in you to budget efficiently. On the down side, any money held in a normal savings account with the same institution will not reduce your mortgage rates.
Facilities such as loan redraw may not be available with no frills home loans, but the option of making extra repayments to reduce your mortgage faster is usually available and makes a significant difference.
Because of the yin and the yang of these loans, Origin Finance Loans recommend that, before you choose this basic loan, you make sure you wouldn’t be better off to borrow on a loan with a range of extras (such as fee free credit cards and accounts etc) and that you compare the costs of getting these extras separately. It may be that a low interest rate home loan is not the best option in the long-run, so we advise you to discuss your choice of options and any final decisions with your financial advisor or solicitor.
With all this advice in mind, the lowest mortgage rate home loans are consistently chosen by home-owners and remain an extremely popular and more affordable option. Please contact one of our consultants and draw upon their knowledge of the hundreds of loans available if you have any questions or if we can assist you in any way, or please click here to apply now.