When people talk about mortgages, interest rates are often a key focus. And it makes sense: the rate affects your repayments, and even small differences can add up over time.
But interest rates are just one part of the picture. If you’re shopping around for a home loan or due to refix soon, here are a few other things to think about that could make a big difference in the long run.
Flexibility vs certainty
Do you want the stability of fixed repayments or the flexibility to make changes as your circumstances evolve? Fixed-rate loans generally offer more predictability, but they can also come with limits or additional fees on things like lump-sum repayments or repayment in full. A floating or revolving credit option can give you more flexibility to make extra repayments or pay off your loan early, which can be especially helpful if you might want to make additional payments in the short term, even if the rate is a bit higher.
Break costs and exit fees
Life can change quickly: a new job, a growing family, or an unexpected move. Some mortgage structures are more forgiving than others if you need to make changes early. It’s worth understanding what penalties might apply if you break a fixed term before it ends.
The value of structuring
You don’t have to choose just one loan type. Many borrowers combine fixed and floating portions, or stagger fixed terms to reduce the impact of future rate changes. A suitable structure can give you balance and the flexibility to whether uncertain market conditions. A mortgage adviser can help ensure your structure is the right fit for your needs.
Extra features that support your goals
Some home loans come with handy features like offset accounts, redraw facilities, or the ability to increase repayments without penalty. These might not seem important now, but they can offer real advantages as your financial situation changes.
Advice can make a real difference
Choosing a mortgage isn’t just about picking the lowest rate today. It’s about understanding how your loan fits into your broader financial picture and setting yourself up for flexibility, stability, or a bit of both.
A mortgage adviser can help you weigh up the pros and cons of different options and structure your loan in a way that suits your goals, not just your interest rate. If you have any questions or need assistance in finding the right fit for you, get in touch today.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.