Which is the best Mortgage for YOU?

Most borrowers consider the best mortgage to be the one that has the lowest interest rate but going for the cheapest rate will generally mean you forgo valuable features and options which give flexibility and if used wisely, can deliver significant savings to you as the borrower.

• The ability to make additional repayments in both variable and fixed rate without penalty.
• The ability to redraw surplus funds at minimal or no cost
• An offset account into which you can place any savings (the interest on your loan is calculated on the loan balance less the savings in the offset)
• The ability to fix at anytime at minimal or no cost.
• Early exit fees which are not excessive

The best mortgage for an investor will include:

• An interest only term loan - this ensures that your negative gearing benefits do not diminish because principal repayments are required by the lender.
• A capitalising line of credit as apart of the loan structure which can be utilised to better manage your cash flow by:

1. meeting any shortfall between rental income and interest repayments on the term loan rather than paying this from personal income.
2. meeting council and water rates as well as any unexpected maintenance costs, that you are required to pay
3. providing a buffer when vacancies occur.

If you have a question and like us to find one of the best mortgages for you, complete the quick form below: