Best Home Loan Rates
Get The Best Home Loan Interest Rates With Tora Finance
Whether you’re purchasing your first home, upsizing your existing property, or adding to your investment portfolio, understanding the home loan market will always pay dividends in the long run. A big part of making the right investment decision is ensuring that your home loan interest amount works with your budget and lifestyle.
Tora Finance offers comprehensive interest rate solutions to all of our clients, big or small. We are focused solely on your needs, your aspirations, putting you in the driver’s seat towards a financially prosperous future. With years of experience, our award-winning brokers go far beyond the one-size-fits-all loan.
Our finance packages are individually tailored to each of our customers, making sure your principal and interest repayments work beyond the here and now.
With over 50 lenders on our books, we will always find home loan repayments that work with and for you. For professional, flexible and reliable service, talk to us today!
Choosing Home Loans - What Is A Fair Home Loan Rate?
Choosing Your Home Loan Interest Rate
When comparing home loans, understanding the interest rate is central to making the right decision. Tora Finance walks you through all the available options for interest repayments across the market, with over 50 different lenders on our books. To understand more about how to repay your loan amount, continue reading below.
Basic Variable Rate Home Loans
Known also as a ‘no-frills loan’, a basic variable rate home loan is ideal for those seeking a straightforward loan with a competitive interest rate. This can be a good option for first-home buyers seeking a stable introduction into the property market.
Basic variable rate home loans do come with some drawbacks, however. Often, you are not able to activate offset accounts as part of your repayment plan. You may also be vulnerable to interest rate rises if the economy were to change after you took out your loan.
Standard Variable Rate Home Loans
A standard variable rate home loan is the most common loan-type across Australia. While still being relatively straightforward, this style of repayment plan allows for more flexibility in how you reimburse your mortgage. Usually, the interest rates on standard rate home loans are slightly higher than basic rate loans.
A mortgage broker like Tora Finance can help negotiate a standard variable rate home loan that makes the most of your money. We understand how to activate all the features of interest rate policies across 50 different lenders.
Fixed Rate Home Loans
A fixed-rate home loan does exactly as it suggests, locking in your interest rate over a set amount of time. Typically, an initial fixed rate period will last from one to five years, although longer time periods are also available. Suitable for long-term budgeting, fixed interest rates work for people looking to get ahead while they can. However, the draw back of fixed-rate loans is that they have a capped limit on additional repayments and no redraw availability. As well as having limited-to-no options with having an offset account with a fixed rate product, during the fixed rate period, if you choose to break this rate, the bank may charge you an early break out fee. To help lower this rate as much as possible, Tora Finance can assist with taking out a lender package to discount this product while also assisting you to set up an offset account to optimise your home loan further.
Tora Finance is Brisbane’s leading home loan negotiator. We understand lending policies better than anyone and work hard to find the perfect deal for you. To understand the market, compare home loans and discuss your ideal mortgage repayments, talk to our expert team today.
Should I Select A Fixed-Rate Home Loan?
Understanding Fixed Home Loan Rates
With the reserve bank changing interest rates, more people are inquiring about the terms on a fixed-rate home loan. A fixed home-loan rate can give buyers peace of mind, locking in a fixed repayment amount over a medium to long-term period. This is very handy if you’re trying to maintain a strict budget.
The fixed-rate period is usually negotiable with your lender, and could run up to 10 years. At the end of your loan period, most people opt into a variable rate for the remaining duration of their loan. However, there may still be an option to renegotiate your fixed-rate contract, and repeat the process for longer still.
Sometimes, fixed-rate home loans can be a double edged sword. Although you are guaranteed the same repayment rate for the duration of your loan, you can’t take advantage of possible interest rate falls. For some people, this is a risk worth taking. However, it is always best to discuss the pros and cons of any home loan decision with an experienced finance professional.
Although the ongoing fees with a fixed-rate loan are consistent, if circumstances change, you may have to pay ‘break ‘costs’. For example, if someone decides to refinance their home or pay off the rest of their loan in one hit, this will usually incur a financial penalty from their bank or lender. It is essential to understand the consequences of changing your home loan before purchasing any property.
Best Fixed Rate Home Loans
Tora Finance offers comprehensive advice and lending options to all potential buyers. Whether you’re purchasing your first home or looking to acquire a new investment property, we provide you with all the tools you need to make the right decision.
What Are Competitive Investment Loan Rates?
Home Loan Investor Rates
Tora Finance understands property investing like no one else. Our knowledge of lender policy and banking criteria ensures that you have a competitive rate on your investment property every time. We have a relationship with over 50 lenders across the country, allowing us to tailor a finance package to suit any size client. To find out more about investment loan rates, and what comparison rates work for you, talk to our team today.
What Is An Investment Loan?
An investment loan is a loan that is used to purchase an asset for the purpose of earning income or capital gains. The most common type of asset purchased using an investment loan is property; however, shares, managed funds and other investments can also be acquired using this type of loan. In order to qualify for an investment loan, borrowers must have a good credit history and stable income.
How Does An Investment Loan Work?
Investment loans are similar to any other loan: you borrow money from a lender and make regular repayments plus interest over a fixed period of time. The main difference with investment loans is that the asset you purchase with the loan is expected to appreciate over time, meaning your investment grows in value along with any equity you build up in the property.
What Are Interest-Only Repayments?
If someone has an interest-only loan, they only pay the interest portion of their loan for a fixed period of time. For example, an interest-only period could be for the first five years after someone purchases a property.
If you do not make principal repayment at any point throughout your interest-only loan, your repayment amount should remain the same. At the end of your fixed period, your lender will usually ask you to start paying off the principal amount.
While your interest repayments are lower during the initial repayment period, once the principal amount kicks in, you will always end up paying more than a standard principal and interest loan.
Balancing The Risk Of Interest-Only Loans
As you only have to reimburse the interest on your loan, the repayments are significantly lower. This can allow potential investors to diversify their portfolio without a large expenditure at the start of their loan. By saving on repayments in the here and now, you can continue to invest your cash in other ventures, accelerating your growth further.
However, there are risks here, too. Interest-only repayments often only succeed if your investment succeeds as well. In most cases, the total comparison rate over time will end up costing you more than a standard principal and interest loan. Without strong growth in the value of your property, you run the risk of ending up with negative equity.
At Tora Finance, we do not want to see our clients with a loan greater than the worth of their investment. Our team works hard at the beginning of your purchase to ensure a prosperous outcome for you and your family. For questions about interest-only repayments, investment properties or other property finance issues, talk to our friendly team today!
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