All home loans come with benefits and disadvantages. Therefore, before taking out any loan it is advisable that you compare what each type of loan has to offer, and just what its drawbacks are, so that you can make an informed decision as to which loan is right for you. The most common loans you will encounter have been compared below.

 

Most common loans compared

PROS
  • Budget and plan ahead with confidence over the life of your fixed loan period.
  • Repayments don’t change during the fixed rate term.
  • Affordable when rates rise.
CONS
  • Loan exit fees can be high if you exit the loan before the end of its term.
  • Some fixed loans don’t allow you to make extra repayments without incurring a fee.
  • Most fixed loans don’t have redraw available.
  • If the fixed period expires when interest rates are high, repayments may be harder to meet.

Contact us at Dominion Finance for more information.

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