Fix, float or split – understanding your mortgage options

Whether you’re applying for your first mortgage, restructuring an existing loan or refinancing to a new lender, it helps to understand why people choose different fix-float strategies. This guide is designed to get you thinking before talking with a mortgage adviser and choosing the best arrangement for your circumstances. Basically, you can choose a fixed […]

What is mortgage insurance and how does it work?

There are two main types of mortgage insurance – mortgage repayment protection insurance and lenders’ mortgage insurance. The first is similar to the other types of personal insurance, like life cover and income protection, so this article is mainly focused on lenders’ mortgage insurance. What is mortgage protection insurance? This is a form of income […]

What is a floating or variable rate mortgage?

Also known as a ‘variable mortgage’ or ‘floating home loan’, a floating rate mortgage has an interest rate that can increase or decrease at any time. That means your regular repayments can also change. The other downside is that floating interest rates are usually higher than fixed rates. The main advantage of a floating mortgage […]

What is a fixed rate mortgage?

A fixed rate mortgage has an interest rate that doesn’t change over an agreed period of time – six months, or one, two, three, four or five years. Fixed rates are typically lower than a floating rate. Also known as a ‘fixed mortgage’ or ‘fixed home loan’, this type of mortgage is popular with New […]

What’s the difference between a loan and a mortgage?

When you start planning to buy a home, there’s a lot of jargon to get your head around. But most of it is easily understood, so you’ll soon be talking like a seasoned home owner. If a lender or mortgage broker ever uses a term you don’t understand, be sure to ask what it means. […]

How long should I fix my mortgage for?

The question ‘how long should I fix my mortgage for’ has much in common with questions like ‘what are interest rates going to do?’, ‘how much can I save in a year’ and ‘what should I name my first born’? The best answer depends on crystal ball gazing, personal circumstances and market analysis. While we […]

Guide – How to pay off your mortgage faster

When you have a mortgage ticking away with regular repayments happening automatically, it can be easy to simply let things continue as they are. But finding little ways to repay your mortgage faster will have an ever-accelerating effect. Every little extra you pay off will immediately reduce the interest you have to pay each time. […]

What is an offset mortgage?

An offset mortgage lets you use money in a separate account (savings or everyday) to effectively reduce the balance of your mortgage when it comes to calculating the interest charged. The money stays in its own account and is available as usual, but simply offsets your home loan balance – hence the name. How does […]

Types of mortgages – which one is right for you?

When you’re borrowing to buy a home or an investment property there are several different types of mortgages to choose from. Once you understand how they work, and the pros and cons of each, it’s easier to pick the types that might suit you best. Most people choose a combination of two or more. It can […]

A guide to managing your mortgage

Once you have a mortgage, it’s a good idea to keep a regular eye on how it’s performing for you. You should revisit things every six months or so, just to ensure you’ve still got the best arrangements in place. However, with everything set up on auto-payments and your budget fine-tuned for home ownership, it’s […]

What is an interest-only mortgage?

As its name suggests, an interest-only mortgage means your regular weekly, fortnightly or monthly repayments only include the interest charged. So you don’t repay any of the money you borrowed (known as the principal) until the end. The agreed length, or term, of an interest-only loan is usually a year or two, but it can […]

What is a revolving credit mortgage?

A revolving credit mortgage is like an all-in-one bank account with a large overdraft facility. It lets you draw down a loan, put money in and take it out whenever you choose, provided you don’t borrow more than your limit. The interest is calculated daily, so you can use your income to reduce the loan […]