Low Interest Home Loan

Naturally, talk to anyone and they’ll tell you that they would love the lowest possible interest rate on their home loan. That’s why low interest home loans (also known as no-frills or budget loans) are incredibly popular, especially with first home buyers. Like its name suggests, low interest rate home loans offer a substantially reduced interest rate and therefore repayments are significantly lower on these types of loans. The downside is that it has very few features.

Generally, as a rule of thumb, the more features a home loan has, the higher the interest rate is so it’s important to consider what’s more important to you. All those features like line of credit facilities, redraw facilities, deposit offset accounts and the like all help you potentially reduce your debt faster which will reduce your monthly repayments and save you money.

Benefits of Low Interest Home Loans summarised:

• They’re offered at a lower interest rate which can save you a considerable amount of money on monthly mortgage repayments
• Most of these cheap home loans still afford you the ability to pay extra off your home loan and therefore reduce your debt sooner.

Potential pitfalls of Low Interest Home Loans summarised:

• The interest rates are usually always variable which means that if interest rates increase so will your repayments. Conversely though, if interest rates go down, so too do your repayments. 
• These low interest loans don’t offer an offset facility which means any money sitting in your savings account won’t be offset against your loan and reduce your home loan debt.
• Other useful facilities like a redraw facility, fee-free credit cards and line of credit facilities usually aren’t available with  discount interest home loans either.

Even with these potential pitfalls, the lowest mortgage rate home loans continue to be very popular with people who are focused on securing the most affordable home loan. There are hundreds of home loans to choose from – from Bank and non-Bank lenders around Australia. Your Wealth Concerns mortgage broker is an expert at sourcing the right low interest home loan for your situation. They’re also experts at determining whether a low interest rate home loan will deliver you the results you’re looking for based on what your financial goals are.

Contact Us

If you would like to discuss your specific circumstances call us on 1300 700 496 or alternatively text your name and number to 0411 320 962 and we will call you.