Deciding on a loan

My fiancée and I are looking out to purchase our first home and are about to apply for finance. Should we decide what type of loan is applicable before speaking to a broker?

You should definitely consider which loan features will suit your needs before applying for a loan. For instance, if you'd like the security of knowing exactly the amount of your repayments, then a fixed loan could be for you. Or perhaps you require a loan which offers a redraw facility? This would allow you to repay more than the minimum regular mortgage repayments and withdraw surplus repayments. Watch out for lenders that charge for this facility.

If you have surplus disposable income, then an all-in-one loan or 100% offset account might be the best option because your savings and income offsets the loan principal and reduces the interest you pay on your home loan. Ultimately, this could save you thousands of dollars in interest costs over the life of the loan.

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