There are many different loans available, each with their own benefits and drawbacks. The great thing is that lenders are more competitive than ever and are constantly refining their products and releasing new ones. However, the problem is - how do you find one that’s right for you?

You need to know where to look and that’s what we are here for. We’ll speak to you first to get to know you and get a better understanding of your needs. We then look at options that suit those needs, to choose a loan that’s right for you and will even make it easier by helping you take care of the process, including associated paperwork and managing the application right through to approval.

When you’re ready, why not talk to a State Financial Services broker about your next steps.

Of course, not all these features will be available on every loan. You can ask us about any that interest you.

Interest Only Repayments

You only pay the interest on the loan and not the principal, usually for the first one to five years, although some lenders offer longer terms, including the option of a further interest-only period.  Because you’re not paying off the principal, your monthly repayments are lower.  These loans are especially popular with investors who pay off the principal when the property is sold. This strategy is usually reliant on the property having achieved capital growth before it is sold.

Extra Repayments

If you pay more than the required regular repayment, the extra amount may be deducted from the principal. This not only reduces the amount you owe but lowers the amount of interest you repay. Making extra repayments regularly, even small ones, is the best way to pay off your home loan quicker and save on interest charges.

Weekly or Fornightly Repayments

Instead of a regular monthly repayment, you may pay off your home loan weekly or fortnightly. This can suit people who are paid on a weekly or fortnightly basis. Because you end up making more repayments in a year, you will save money and reduce the life of the loan.

Redraw facility

This typically allows you to access any extra repayments you have made. Knowing you have access to funds can provide peace of mind. However, be aware that lenders may charge a redraw fee and have a minimum redraw amount. There might also be other restrictions on when funds can be redrawn.

Repayment holiday

You may be able to take a complete break from repayments, or make reduced repayments, for an agreed period of time.  This can be useful for travel, maternity leave or a career change.

Offset account

This is a savings account linked to your home loan. Money paid into the savings account is deducted from the balance of your home loan before interest is calculated.  The more money you save, the lower your regular home loan repayments.  You can often access your savings in the usual way, by EFTPOS and ATMs. This is a great way to reduce your loan interest, as well as eliminate the tax bill on your savings. However, be aware the account may have higher monthly fees or require a minimum balance or have other restrictions.

Direct debit

Your lender automatically draws repayments from a chosen bank account.  Apart from ensuring there is enough cash in the account, you don’t have to remember to make repayments.

All in one home loan

This combines a home loan with a cheque, savings and credit card account. You can have your salary paid into it directly. By keeping cash in the account for as long as possible each month you can reduce the interest charges. Used with discipline, the all-in-one feature offers both flexibility and interest savings. Interest rates charged for these loans can be higher.

Professional package

Home loans over a certain value are offered at a discounted rate, combined with discounted fees on other banking services.  These can be attractively priced, but if you don’t use the banking services you may be better off with a basic variable loan.

Portable loans

If you sell your current property and buy somewhere else you can take your home loan with you.  This can save time and set-up fees, but you may incur other charges.