The best mortgage for you is not necessarily the one with all the bells and whistles. Many lenders promote “extra features” and “packaged deals” as being part of delivering the best mortgage to you. You pay a higher rate of interest for features or receive a discount on your mortgage rate provided you place other business with the bank. The latter scenario gives the lender an opportunity to capture other lucrative business such as your credit card facility. Interest rates on credit cards, business loans etc are not as politically sensitive as home loan rates and over the past 6 months while we have seen banks pressured into passing on some of the RBA rate cuts to their home loan borrowers, there has been little if any pressure to pass on any reduction to their credit card and small business customers. You may think you are getting the best mortgage but are you?

Owner Occupied Home Loan
If you are looking for a loan to refinance or purchase your owner occupied home the best mortgage for you will generally be a simple 25 or 30 year principal and interest loan with free redraw. As a home buyer you do not need a line of credit. Simply pay as much as you can into your home loan account each month and redraw amounts later to pay bills if you need to. By paying as much as possible into your home loan account you will reduce your interest and if you keep the redraws to a minimum you will pay off your loan much faster.

The best mortgage for you is most likely to be a simple basic variable rate product that provides you with free redraw and an option to fix at any time if you wish to.
Call Vicky Edema (02) 92991833

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Investor Loan
If you are looking for an investment residential loan then the best mortgage for you may well be a standard variable rate interest only loan but you must consider your tax position. There are some good loan structures available in the market which will improve your tax position and generate significant savings to you. We have wealth of experience in arranging investment loans and would be happy to discuss your plans and provide you with a guide to the best mortgage structure for you. Call Vicky Edema on (02) 92991833

Click here for best mortgage rates for investment loans