A “home loan” or “mortgage” is a loan advanced to you by a financial institution in return for security over the property you are using the loan to buy.
Typically a home loan will be a 25 or 30 year term, with regular repayment amounts fortnightly or monthly that are designed to pay off the loan over the term.
The loan is secured against your property so if you are unable to continue paying the loan, the lender may ultimately require you to sell the property to settle the debt.
Different types of Home Loans
Package home loan: Package banking involves combining your home loan and other commonly used financial products into one bundle, such as:
- A standard variable mortgage, potentially at a lower discounted interest rate than a no-frills mortgage.
- A mortgage offset account.
- Transaction account or savings account.
This type of home loan caters to people who are borrowing a large amount of money, usually over $250,000. Overall for people who are looking to get more than just a home loan from their lender. Professional packages (or pro packs) are a great way to bundle several products together and save.
Teo Torrelli, Director of MKS Lending Group has been arranging Home Loans since 1985. He will work with the banks to ensure the right home loan is arranged to suit your circumstances.