Are you looking for a home loan in Australia? Well, you’re in the right place. Here you can compare an A-Z list of all the home loan providers in the Mozo database.
Finding the right home loan for you can be a long process with a lot to keep in mind. At Mozo, we make the job easier! Here you’ll find a wide range of home loan providers and loan types to compare and choose from.
Principal and interest. With a principal and interest repayment, you pay back what you borrowed from the home loan provider (the principal) plus whatever the interest rate was on your loan.
Interest only. An interest only repayment means that you only pay back the interest on your loan for a set period of time.
Fixed Interest loan. Fixed interest loans are when the interest you pay back on a loan is at a set interest rate for the length of the loan. This option can be good for those who are tight on budget as you can more easily determine how much you owe each repayment cycle. Fixed interest rates do have some disadvantages though. For one, when your loan's prepayment period ends, you’ll have to rollover to a new fixed interest loan which could be in a less favourable interest rate environment.
Variable Interest loan. Variable interest loans are tied to interest rates and will rise or fall accordingly. This option can be risky if you’re struggling financially as a sudden jump in interest rates can cause your repayments to go over what you can realistically afford. However, variable interest has its benefits. In low-interest rate environments you could be paying a lot less interest in comparison to your fixed interest peers. Additionally, many variable interest loans usually offer offset accounts which can help reduce your repayments even more and give you a rainy day fund at the same time.
Split home loans. With a split home loan you split your loan into two accounts, one fixed interest and one variable with an agreed percentage of the loan split between the two. These can be advantageous as you can have some of the features of a variable rate whilst also having the stability of a fixed rate for a good portion of the loan.