Loan Features: Which One Suits You Better?

Modern mortgages come with an almost endless list of options that are designed to help you manage your loan and pay it off faster than the usual 30-year term. The majority of Australians have no idea how these features function or which ones might be beneficial to them. As part of the Preliminary Assessment, our mortgage brokers will assist you in selecting the appropriate loan features and, as a result, a loan product. Besides if you are looking for the best mortgage broker Melbourne, make sure the agency offers enough benefits for you to choose them over others.


Redrawing your home loan allows you the ability to withdraw any additional repayments made over and beyond the minimum loan amount.

For example, if you had been making an additional $200 monthly payments, you would be eligible to pull $2,400 after a year. Any additional payments you’ve made are effectively accessible whenever you need them.

This is a terrific method to save for a vacation or a car by putting money in your loan account rather than your savings account. Please be aware that some lenders may charge a fee for a loan redraw, and that drawing is not always possible with fixed-rate loans.

Additional repayments 

This function allows you to make additional loan repayments in addition to the minimum loan repayment. For example, if your minimum monthly loan payback is $2,000, but you put $3,000 into your loan each month instead of the minimum. This indicates that they have paid a $1,000 additional loan repayment.

Extra payments can be made on a regular basis by adjusting the amount deducted from your account by the banks. Alternatively, you can make irregular extra payments by sending money in whenever you have it available. Please keep in mind that extra repayments are not always possible with fixed-rate loans.

Solely on the basis of interest

You will only pay the interest payments each month during an interest-only period, not any of the principal. The advantage is that you keep your repayments to a bare minimum; but, you will not be able to pay off the loan until you make additional payments. The typical interest-only duration is up to 5 years, but some lenders may contemplate 10 or even 15 years!

Payroll crediting

You can have your salary sent directly into your loan account using this feature. This is most typically employed by persons who have a Line of Credit or are salary sacrificing their mortgage.

Portability of a loan

You can shift your loan to another house if you have loan portability. This is typically utilized when selling a home and purchasing a new one. In most circumstances, settlements must take place on the same day in order for this to function. This can save you from having to apply for a new home loan when you relocate.

As the best mortgage broker Melbourne, our mortgage brokers are here to assist you in making the best decisions possible regarding your home loan. If you’re not sure which loan features you require, or if you require additional information regarding loan features not listed here, please contact us and we’ll assist you in making your decision. Whether you are a first-time homebuyer or a professional investor, we have the best mortgage broker Melbourne for you.

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