What do I need to know about borrowing money to buy a property?

Answer

When it comes to choosing a home loan, four key factors can affect the flexibility you have and the amount you pay over the life of a home loan:

  • The type of interest you pay―choosing a fixed or variable rate or a combination of the two can determine the flexibility of your home loan interest rate and if you’re allowed to repay it early without incurring a penalty.
  • The type of repayments you make―paying the principal and interest or just the interest can affect how long it takes to pay off your home loan.
  • How often you make repayments―making loan payments fortnightly or monthly can make a big difference to the time it takes to pay off your loan and the amount of interest you pay. Although not all lenders offer fortnightly payments.
  • The features of your home loan―different types of loans have features that may help you keep interest charges down or allow you to access any extra money you’ve repaid if you need it. It's important to research and compare home loans.

 

 

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Important information

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It’s important to consider your particular circumstances and read the relevant Product Disclosure Statement or Terms and Conditions before deciding what’s right for you. This information hasn’t taken your circumstances into account.

This information is provided by AMP Life Limited. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relation to products and services provided to you. All information on this website is subject to change without notice.