Finding the best home loan for you
If you are looking for a mortgage or want to refinance, here are some things you need to know.
Sponsored Story
As we get older, our financial needs and goals evolve, and for many Australians, this may include reassessing your home loan options.
Whether you are looking to refinance, downsize, or find a more suitable loan product, navigating the home loan market can be complex.
Here’s a guide to help you.
Home Loan Referral Program
Say hello to flexible, affordable home loans with more features and competitive rates with National Seniors' partner, Auswide Bank.
Whether it’s a first home or an investment property, Auswide Bank Lending Consultants are available to help you, your family member, or someone you know each step of the way.
Standard variable rate loans: These offer flexibility, allowing borrowers to make extra repayments and potentially save on interest. However, interest rates can fluctuate, impacting monthly repayments.
Fixed-rate loans: For those seeking certainty, a fixed-rate loan locks in an interest rate for a set period, ensuring stable repayments. This can be beneficial for budgeting, but it often comes with less flexibility for additional repayments or early payouts.
Reverse mortgages: These allow homeowners aged 60+ to access equity in their home without making repayments. The loan is repaid when the house is sold, typically after the borrower moves into aged care or passes away. While this option can provide financial freedom, it is important to consider the long-term impact on estate planning.
Low-doc loans: For self-employed retirees or those without traditional income sources, low-documentation loans provide access to home financing with less stringent income verification. However, they often carry higher interest rates.
Line of credit loans: These allow homeowners to borrow against their home equity as needed, providing flexibility for expenses such as renovations or medical costs. Interest is charged only on the amount used.
If your current loan no longer meets your needs, switching to a different product or lender may be a smart move. Here’s how to do it:
- Assess your current loan: Review your existing mortgage terms, including the interest rate, fees, and repayment flexibility. Determine whether it aligns with your financial goals.
- Compare loan options: Use comparison tools or speak with a mortgage broker to find a loan that better suits your situation. Consider interest rates, fees, and features such as offset accounts and redraw facilities.
- Check for exit fees: Older home loans, particularly fixed-rate ones, may have break costs or exit fees. Calculate these costs to ensure switching is financially beneficial.
- Apply for the new loan: Once you have chosen a new loan, complete the application process, which may include credit checks and property valuation. If refinancing with a new lender, they will typically handle the loan transition.
- Finalise the transition: Upon approval, your new lender will pay out your old loan, and you’ll begin making repayments on the new one. Ensure all documentation is correct and that direct debits are updated accordingly.
Age restrictions: Some lenders impose age-related lending criteria, so it’s essential to check eligibility.
Financial planning: Consider speaking to a registered financial adviser to ensure the loan aligns with your retirement plans.
Government assistance: Programs like the Pension Loans Scheme may provide alternative ways to access funds without traditional borrowing.
By understanding your options and taking a strategic approach, you can find the best home loan to support your financial well-being in later life.
Where you enquire about a home loan, National Seniors Australia Ltd ABN 89 050 523 003 will refer you to Auswide Bank Limited ABN 40 087 650 060 Australian Credit Licence 239686 (Auswide Bank) for the purpose of applying for credit. Auswide Bank is the credit provider. Auswide Bank is a wholly owned subsidiary of MyState Bank Limited ABN 89 067 729 195, part of MyState Limited ABN 26 133 623 962. If you are approved for a home loan, National Seniors Australia will receive a referral fee from Auswide Bank of the higher of $150 or 0.30% of the total loan amount. Approval of credit is subject to Auswide Bank's eligibility, lending and credit criteria. Auswide Bank is a panel lender for the Home Guarantee Scheme. Eligibility criteria apply. If the Scheme places for non-major panel lenders are utilised (or taken up) in a financial year, standard lending approval criteria, including the need for LMI where appropriate. Fees, charges, terms and conditions apply. National Seniors Australia is not a credit representative of Auswide Bank and is unable to assist you with your credit application.
