Review your loan annually and investigate what else the market can offer you. This can save you an enormous amount over the term of your loan, however take all fees into consideration.
Australian Mortgage Rates and Information
The most common types are 20 to 30 year variable mortgages where the interest rate can vary up or down depending on the financial market at the time.
Another option available to borrowers is a fixed rate mortgage where a portion or all of the mortgage is fixed for a term of 1, 2 or three years and it then reverts to a variable rate martgage.
Financial markets have evolved to such an extent that there are a multitude of flexible mortgages available now including which ones which enable you to redraw a portion of the loan depending on your equity and financial situation.
Purchasing a home:
If you haven’t found a home yet, you should consider getting pre-qualified (a lender will review your financial history before you find a home) or pre-approved (a lender will check your credit and provide you with a letter stating that you’ve been pre-approved for a certain amount).
This gives you added confidence in the negotiating process as it is one less hurdle to clear and you know what you can afford.
Always investigate ways of reducing your mortgage as fast as you can whether it be by an offset account or paying more regularly towards your mortgage.