Cracking the Basics of Home Loans: What you need to know

Having your own home registered under your name is one of the greatest achievements anyone can attain in life, simply because owning a property cannot be easily attained by anyone. You have to think about the legal aspect of owning a home, not to mention the more stressing financial aspect. Price is essentially one of the main factors a prospective buyer considers in their buying decision. Owning a home is automatically linked to financial challenges, what you need is to have a strong, long term and stable income that can continuously support expenses and payments you will likely encounter.

With that you would likewise want to have a house design that will suit your taste and lifestyle. You may opt for design that focuses on minimalism and technology. The use of modern technology is being incorporated in the features of the different places of the house. So to better equip your budget and have the house that will really fit your personality, getting a home loan can really help you a lot.

What is Home Loans all about?

Home loans are one of the considered solutions to a home buyer’s dilemma, in which financial companies will lend you money to have your dream home instead of planning long term savings. It is considered the fastest and easiest method when it comes to paying a property. It is offered in two ways: a variable-rate interest which is constantly changing with regards to the current situation of the market. Fixed-rate interest loan, however, will not be affected by the changing market situation and this will surely help you prepare for the right amount of budget. Many companies now offer lower interest rate in a way that is favorable for both choices.

What is so good about a fixed-rate home loan?

Fixed rate home loans like the one from NPBS allows you to fix your repayments from the 1st up to the 10th year of your loan. With fixed-rate home loans, loaning companies calculates the interest you have to pay right at the start and gives you the amount you have to repay on the frequency of your choice, whether weekly or fortnightly. This gives you an idea if you would be able to afford the loan and the consistency of paying the same amount every repayment period throughout the loan. This means no more unexpected charges; you would always be able to prepare the money on time.

Why consider home loans?

Fixed Rate Home Loans don’t just allow you to have insights on your future payments, but it will also help you save money in the present. The market situation is constantly changing, and most of the time, rates increase due to the growing demand and the ever-increasing prices of materials and house-building equipment.

By choosing the right home loan, you would be able to save as much as 1% compared to other loaning companies’ offers. With some companies offering discounts as low as 3.99% for the first years of your loan, compared to the average 5.21% offered by most loaning companies. With the right fixed-rate home loan, you could save as much as AU$6,000. You could use this money to invest in other ventures, you could even use the savings to pay for some of the loan itself.


To sum up, fixed rate home loans offer great deal for you when looking to obtain your own home as soon as possible. Some mortgage lenders offer consultation and will guide you through your home-buying process from day one. Don’t delay, the real estate market is in a constant state of change and one wrong move can render your dream home hunting fruitless.

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