Home Loans

Buy your First Home, Next Home or Dream Home sooner with a Home Loan

When it comes to buying a home, the journey of securing the right home loan can feel overwhelming. That's where Margin Finance steps in, simplifying this path with expert advice and access to an extensive range of home loan options from banks and lenders across Australia. Margin Finance stands out as your go-to Home Finance & Mortgage Broker, dedicated to finding a loan that fits your financial situation like a glove.

Why choose Margin Finance? Firstly, our seasoned experts offer personalised service, ensuring you understand every step of the home loan application process. From calculating your borrowing capacity to advising on the nuances of interest rates, we're here to make your dream of buying a home a reality. Whether you're curious about the implications of lenders mortgage insurance (LMI) or navigating the complexities of loan to value ratio (LVR) and stamp duty, our advisors have got your back.

We pride ourselves on offering a streamlined application process. This means guiding you through gathering necessary documents like bank statements, making sense of your credit history, and understanding the property market trends. Our aim is to secure you a home loan with favourable terms, whether that involves a variable interest rate that fluctuates with the market or a fixed interest rate ensuring predictable repayments for a set period.

Access to a myriad of Home Loan options enables us to tailor solutions whether you're after interest rate discounts, seeking to leverage your home equity, or exploring ways to get pre-approved for a smoother buying journey. Our expertise extends to helping clients understand the benefits of features like offset accounts, crucial for those looking to reduce their loan interest.

At Margin Finance, applying for a home loan is more than just filling out forms; it's about crafting a strategic approach to finance your home. With us, you not only gain a partner well-versed in the current home loan rates, be it for fixed interest rate home loans or variable home loan rates. You gain a trusted advisor.

So, when you're ready to take the next step in your home buying journey, remember Margin Finance is here. With our in-depth knowledge and access to a comprehensive range of lending options, we're poised to navigate the home loan landscape on your behalf. Let us help you secure the key to your new home with confidence.

Let's talk about Fixed Rate Home Loans & Variable Rate Home Loans

Let's talk thought some of the loan options you have to make informed choices about whether to fix now, in the future or not at all:

1. Understanding Fixed and Variable Rate Home Loans

Variable rate home loans are like the chameleons of the finance world, flexible and adaptable, offering more features such as redraw facilities and the ability to make extra payments. On the other hand, fixed-rate home loans are more like tortoises, steady and predictable, with consistent repayment amounts over the fixed term.

However, breaking free from a fixed-rate home loan term can feel like escaping from Alcatraz, often incurring significant extra costs.

2. Fixed Home Loan Interest Rates: Predicting the Future

Fixed home loan interest rates are like your personal financial weather forecast. Lenders assess the cost of holding money at a certain rate for a specific amount of time and determine the interest rate accordingly.

When a borrower locks in their interest rate, they're betting on the variable rate rising above the rates they've secured. If a borrower fixed their loan today at a five-year fixed rate that's 2% higher than the variable rate, they would start paying an extra 2% interest immediately.

3. The Pros and Cons of Fixed Rates: A Balancing Act

A fixed-rate loan offers a fixed interest rate and, consequently, fixed loan repayments. You can usually "lock in" your repayments for between 1-5 years, even though the total length of the loan itself maybe 25 or 30 years. At the end of the fixed loan period, you can choose whether to fix the loan again for another period of time at the current market rates or convert the loan to a variable interest rate for the remaining time left of the loan.

While fixed rates provide peace of mind and precise budgeting, they don't decrease if rates fall. They also limit additional payments and penalize early payout of the loan.

4. Variable Home Loan Interest Rates: Riding the Economic Wave

Variable home loan interest rates are like surfers riding the wave of the economic climate. They fluctuate approximately in parallel with the Reserve Bank of Australia’s “cash rate”.

The Reserve Bank uses the cash rate as a tool to control inflation – when the economy is thriving (and inflation is high), the cash rate goes up; when the economy is weakening (inflation usually is lower), the cash rate often comes down.

In conclusion, whether you opt for a fixed or variable-rate home loan ultimately depends on your financial circumstances, risk tolerance, and market expectations. Use our free home loan quote to see if you could save by refinancing to a fixed or variable rate, or find out your borrowing capacity if you're looking to get a home loan. Your dream home might be just a few smart decisions away!