If you’re ever in Brisbane, you may find that when you want to purchase a home, or even refinance your current mortgage, that you’ll need to go through a mortgage broker. In this guide, we’re going to briefly explain some of the most common home loans recommended by brokers in the area, so you have a little more understanding of them. At the same time, we’ve found a mortgage broker if you’re needing one of these special home loans so you can get the most out of it as well, but we’ll save that one for later.

Variable Vs. Fixed Home Loans

There are options when it comes to percentage rates, and one thing that is notable and often recommended by mortgage brokers is a variable rate home loan. Most people choose these, and even though they rely heavily on the Reserve Bank of Australia’s cash rates (which fluctuate), they also have fluctuating interest rates, which means that on some months, they may have lower payments. Other months though, keep in mind that if the rates rise, so will your monthly payments.

The good thing about this is that while it may seem like a gambling process, it is a way to pay off your loan faster by paying extra (or your normal amount) when the price is lower.

Fixed Rate Loans

This is a home loan which locks your interest rate at a certain time frame, and most of the time though, it’s higher than the current rate. This is great for borrowers who don’t want to play the yo-yo game, and they offer security if you know you can afford the payments on time, that you’re going to have a steady payment that needs to be made.

Guarantor Loans

Sometimes you need to know that you’re looking to borrow more than 80% of the cost of the home but don’t want to pay for mortgage insurance. In these, you can ask someone to be your guarantor and use some of their own mortgage as a way to put money down on your mortgage. This is an excellent choice that many family-oriented first time buyers opt into when they’re wanting to get their hands dirty in the real estate market for the first time, or simply to buy their first home for their future.

Lines of Credit

Another great option that some mortgage brokers and lenders provide are line of credit loans. There are also known as home equity loans, which means that they can use their mortgage in order to pay for other things that need payment. It’s like using your current mortgage for things that you may want to do, such as purchase a new vehicle, or what many people use them for – renovating your home. Keep in mind these loans will require extra interest payments to be made to repay what you’ve borrowed again out of your mortgage, otherwise you’ll make your loan term end up lasting longer.

Conclusion

If you’re wanting a solid mortgage broker in the Brisbane area, you may want to look into North Brisbane Home Loans (northbrisbanehomeloans.com.au/) to help you get that first dream house, or work on building or renovating your current home.