Interest-Only loans can be a valuable tool if used strategically, but they aren’t a one-size-fits-all solution. But what exactly is an interest-only loan, and is it the right choice for your financial situation?
Let’s be clear: rate cuts are a double-edged sword. Yes, they lower repayments and ease the squeeze. But they also flood the market with cheap money.
Refinancing involves replacing your existing home loan with a new one, either from the same lender or a different one. For Australians, EOFY creates a natural checkpoint for evaluating whether their existing mortgage is still serving their financial goals.
The RBA has officially cut the cash rate by 0.25%, bringing it down to 3.85%, marking the second cut this year.
If rate cuts are implemented, the main priority for borrowers should be understanding how it affects your mortgage. This may also be the perfect time to explore refinancing or reviewing your current mortgage setup through an experienced mortgage broker, to try and secure a better deal.
With a P&I loan, your regular repayments include both these elements. This means every time you pay, part of your repayment reduces the loan balance (the principal), while the other part covers the interest owed.
The type of loan you choose can make a big difference in your financial outcomes and long-term goals.
Postcode restrictions are guidelines that lenders apply when assessing the risk of approving a home loan for a property in a specific area.
Here’s a guide tailored for Australian self-employed borrowers to better understand how to qualify, what to expect, and how to prepare.
