How to find flexibility in your home loan
Chances are that losing your job or injuring yourself will be the last things on your mind when you start house hunting.
But the what-if moments are exactly what you should consider while searching for the right home loan.
Unforeseen events that affect your income such as breaking your leg or a redundancy can have a dramatic impact on your finances. Paying the bills and making your loan repayments – once an easy part of your routine – can become a heavy burden.
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Redraw your cash from available funds when you need it, at no charge.
The best way to avoid falling into a mountain of debt should the unexpected occur is to find a home loan that will adapt to your life circumstances from the outset.
ME offers home loan conditions aimed to make life easy when your circumstances change – such as repayment holidays – with its Flexible Home Loan.
Homeowners can choose between fixed, variable or split loans. With fixed rates there’s no need to worry about rate rises – just lock in your fixed rate for one, three or five years and enjoy the certainty of paying the same repayment amount.
Choosing a variable rate loan means riding the roller coaster of interest rise ups and downs. The Reserve Bank of Australia has cut rates recently, and is widely speculated to make another reduction before the year is over.
Split loans give you the best of both options. You choose how much of your loan should be fixed and how much is variable, depending on your personal circumstances.
With ME’s Flexible Home Loan you can choose to make repayments weekly, fortnightly or monthly. This gives you the freedom to manage your finances the way that suits you best.
It also offers a free redraw facility for those with a variable component to their loan and funds available. This means you can keep your hard-earned money working on your mortgage while still having the freedom to renovate, buy new furniture, or go on a holiday when and if you need to.
Your circumstances may change for the better or the worse. So if you are fortunate enough to have the ability to make additional repayments, ME Flexible Home Loan lets those with a variable loan do this without extra charge. And it’s free to make additional repayments of up to $30,000 on any fixed rate component of your loan during the fixed interest rate period.
There are many important decisions to be made when finalising your home loan and finding a loan that adjusts with you will pay off in the long run.
This content was sponsored by ME Bank. Comparison Rate based on a loan of $150,000 for a term of 25 years. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply. Applications are subject to credit approval. For more information, go to mebank.com.au or click the logo below:
