Home Loan Mortgage Comparison
Are you struggling to decide which home loan deal you should opt for? Understanding the implications of a home loan’s interest rate is vital to make sure that you are getting a bargain!
Included introductory terms and rates may add an additional layer of confusion to what you initially thought was a simple process. However, choosing a home loan deal does not have to be so complicated!
Odin Mortgage’s home loan comparison calculator can help you compare home loans. You can compare and contrast different home loan options and see how much each alternative will cost your bank balance.
Why Do I Need to Use a Loan Comparison Tool?
Using a loan comparison tool ensures that you get the best deal. Have you been attracted to an amazing introductory interest rate that is persuading you to opt for that home loan deal? How does the ongoing interest rate compare to the introductory rate?
Some lenders entice the consumer with unbelievable introductory interest rates. Your monthly payments look great and you think you have your dream homeowner locked down. But is this home loan deal really as good as it looks?
A loan comparison tool compares financial products and monthly repayments, calculating the total interest payable across the loan term.
This takes into account the amount you pay during the repayment period according to the financial institution’s terms. Introductory and ongoing interest rates are totalled to compare interest rates from your service provider.
Discover which home loan can save you money. But, be aware that it might not be the home loan product that you initially assumed looked great!
How Do I Use a Loan Comparison Tool?
Use a trusted loan comparison tool from Odin Mortgage today! You will find a clear layout and prompts containing the information that you need to input into the calculator tool.
Follow these simple steps to use a loan comparison tool:
- Enter the amount of money that you want to borrow, followed by your ideal loan term.
- Choose which loan you want to compare and enter any relevant fees such as upfront fees and ongoing fees.
- Enter the introductory and ongoing interest rates as well as the introductory loan term.
- Now, complete the same details for a second home loan.
- Odin Mortgage’s home loan comparison tool will calculate the monthly repayments during the introductory period and the ongoing monthly payments.
- You will also find the total amount payable under each home loan, providing you with an all round comparison so you can make an informed decision.
Can I Only Compare Home Loans Using the Loan Comparison Calculator?
Odin Mortgage’s loan comparison calculator can be adapted for any type of loan. Compare unsecured personal loans and secured loans, as well as guarantor loans and bad credit loans. As long as you know the interest rate, the loan term, and any introductory rates and terms, you can compare any loan.
Simply enter the relevant details into the loan comparison calculator! You will find out how much you will need to pay under each deal over the duration of the loan. Your monthly payment details will be clear, helping you to effectively compare loans.
Do I Need a Loan?
You may need a loan for a variety of circumstances. But, what is a loan and what factors should you consider before agreeing to loan terms?
What Is a Loan?
A ‘loan’ involves borrowing money from a lender for a specific purpose. You will need to pay back the money you have borrowed within a specific timeframe, however.
Most loans will also attach an interest rate to the loan. This will require that you pay back the lender more money than you initially borrowed.
For this reason, it is only ever recommended that you apply for a loan if you really need to. A prime example is a home loan as most people will never be able to save enough money to buy a house outright. This is particularly true in Australia’s surging property market!
Why Would You Need a Loan?
Buying a home is the dominant reason why most people need a loan. However, there are several other reasons, also.
Perhaps you need to borrow money to make a series of home improvements, or you want to take your family on holiday? Maybe you want to pay for a dream wedding?
You may need a personal loan to buy a car. The cost of the car is divided across a few years with car finance so that you can pay for the car whilst using it. Of course, interest is also added to the loan.
However, some people need a loan to consolidate existing debts. If you have several debts with different lenders, a debt consolidation loan will merge your debts into one.
This will leave you with one payment to pay each month with one interest rate to contend with. In this case, taking out a loan is a sensible idea and can help you reduce your debt and save money in the long run.
An additional reason why you may need to take out a loan amount is if you need to buy a new property before your existing property has sold. This is called a bridging loan and is a temporary stop-gap.
What Types of Loan Are Available?
There are various types of loans that you could consider applying for to raise some much-needed cash.
1. Secured Loans
Secured loans are secured on an asset, such as a property. If you default payments, your property could be seized under a secured loan.
Typically, a home loan is a secured loan, being secured on the property you are buying. However, you can apply for other types of secured loan, secured to a valuable asset. It can be easier applying for a secured loan as the lender has some leverage if you fail to maintain payments. See how much you can borrow today!
2. Unsecured Loans
Unsecured loans are typically personal loans. Personal loans are not secured on any asset. Therefore, if you default on the loan terms and fail to pay repayments, your home, and other assets are safe. However, your lender will still chase you for payment of the defaulted loan.
Usually, you will need a good credit score and a good credit history to secure an unsecured loan. The lender does not have any leverage with an unsecured loan and may never get their money back in some default cases. Lenders will therefore aim to ensure that unsecured loans are not granted to those with a poor credit history and a bad credit score.
3. Guarantor Loans
There are financial products for those with a poor credit history, however. You could apply for a guarantor loan, asking a friend or family member to guarantee your personal loan.
However, if you were to default on the financial institution’s terms of the loan, your friend or family member will be liable to pay your debt. This may address your financial needs and personal circumstances but may strain your relationships and friendships.
4. Bad Credit Loan
If you do not want to involve your friends or family members with a guarantor loan, a bad credit loan could be available to you despite your bad credit score. Bad credit loans will offer a higher interest rate to mitigate against the high risk. There may also be a limit on the amount of cash you can borrow from a financial institution.
How Can I Pay Less Interest?
Pay less interest on your loan when you pay your loan in full earlier. By making extra repayments each month, you can shave years off the loan term and the amount of interest you will pay.
The savings you can make will total thousands of dollars! Check out the benefit your extra repayments will make and use Odin Mortgage’s Repayment calculator now!
Contact Odin Mortgage Today!
To discuss a vast range of loan options, contact Odin Mortgage today! Specialising in Australian mortgages for Expats and beyond, our professionals understand which financial products are open to your loan application. We have fantastic rates available!
Complete our online form now, or review numerous knowledgeable resources available from our specialist brokers. You could also speak directly with our mortgage brokers for tailored advice.
Our range of calculator tools is the best place to start to compare loans and secure the best deal for you!
Frequently Asked Questions
Do you want to compare loans with Odin Mortgage? Here are some frequently asked questions to help you get started!
Will my credit record affect the personal instalment loans I can apply for?
Yes, credit scores on your credit record do affect the loan options that you can apply for. Whether you are apply for a homeowner loan or varying personal loan rates, a better credit score will open up favourable loan rates.
A good credit score could result in cheap loan rates as other lenders assess your financial history and risk. You could borrow the maximum loan amount. A bad credit report may mean that higher loan rates are charged and less money can be borrowed.
Are cash rebates available with a loan?
A cash rebate or successful loan drawdown option could be available with your loan. However, this is not available with all loans even with good credit.
What financial tools does Odin Mortgage offer?
Who can use Odin Mortgage?
Odin Mortgage is specifically for Aussie Expats, Australian PRs, and foreign nationals who live overseas. Find out more about Odin Mortgage and read our FAQs.
How does tax-residency status in Australia affect a home loan application from overseas?
If you are a foreign resident and you are considering applying for a home loan in Australia, it is important to speak to a specialist mortgage broker about your specific circumstances. They will be able to advise you on the best way to proceed and help you to ensure that your application is successful.
It is also important to be aware of the tax implications of owning property in Australia as a foreign resident. You will be liable to pay Australian tax on any rental income you receive from your property, and you may also be liable to pay capital gains tax on any profit you make when you sell the property.