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 you significant savings.
The best mortgage for a home buyer will include the following features:
- 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 any time at minimal or no cost
- A small line of credit to act as a buffer should your circumstances change
- A loan management guide to keep you on track and encourage you to make extra repayments to your home loan whenever possible
- A visa card at the same rate of interest as your home loan and with a 55 day interest free period
The best mortgage for an investor will include features that help with:
- Meeting any shortfall between rental income and interest repayments on the term loan rather than paying this from personal income.
- Meeting council and water rates as well as any unexpected maintenance costs, that you are required to pay
- Providing a buffer when vacancies occur
- An investment visa card at the same low rate as your line of credit to assist with costs associated with your investment property
- When looking for the best mortgage in the market make sure you consider the loan structure and features first - the interest should be competitive but don't sacrifice good features that can deliver savings for a cheap or discounted interest rate
You can contact one of our mortgage specialists to chat about the best mortgage for you