Other Home Loans Options Worth Considering 

Other Home Loans Options Worth Considering 

Getting a home loan is the most popular and fastest route in getting one’s dream house. But it is a complex process and is surely not for everyone.

Sometimes, even the traditional or most common types of home loans just don’t seem to fit the needs and personal circumstances of some borrowers. That’s why it pays to know what are the alternative options that these borrowers can explore.

Construction home loans

Home construction loans are examples of loans individuals who want to build their own home from scratch.

This can also be used when doing renovation works in your existing home.

READ MORE: Application Guide for Personal Loans in 2021

One needs to sign a building contract with a licensed builder.

The loan is drawn down in various key stages of the construction.

Various Other Home Loan Types
Fixed-rate home loans
If you want a sense of security that your interest is fixed for a predetermined period of time, you might want to consider this option. However, you won’t benefit should the interest rate fluctuate in your favor.
After the lock-in period, you have the option to revert to variable rate or negotiate with your lender to re-fix your mortgage.

Variable-rate home loans
With variable-rate home loans, interest rates fluctuate based on cash rate and other economic indicators.

Partially-fixed rate home loans
If you’re unsure whether to get a fixed or a variable rate home loan, why not get the best of both worlds?

Read More: Home Loans 101: Things to Know Before Lodging Your Applications

With partially-fixed, you have the option to fix a portion of your mortgage and a part on variable rate. And this is often the path many clients choose, the ability to have extra payments made into the variable portion of the mortgage while knowing that there is a fixed portion that stays consistent and that can be budgeted for.

In summary it still requires a lot of investigation on the part of the finance broker or lending institution to understand your particular circumstances. A one-size-fits-all approach does not necessarily meet with your future goals and aspirations. And is critical when trying to utilise even basic budgeting principles to have a degree of security.

There are many types of home loan products available and and future articles will cover many of these and the usage for these at the appropriate time.

Darin Hindmarsh is the founder and CEO of Intellichoice Finance, a broking firm based in Brisbane, where he specialises in owner builder loans. He's been providing financial and broking services in the past 18 years. Hindmarsh is also finalist in the 2020 Australian Mortgage Awards - Pepper Money Broker of the Year – Specialist Lending. To jumpstart your home loan application, visit their home loan online application page today. Like and follow them on their Twitter and Facebook accounts.