1
What home loan guidance covers
The guidance treats buying a house as a big commitment. It notes that even small differences in interest rates, in costs and in repayments can grow over the life of a home loan. For first home buyers, it points to planning to save for a deposit and looking into the help that is available.
It then turns to picking a loan: the things worth checking in one, and how to weigh up loans from different lenders. It also covers using a mortgage broker, including what a broker does, finding one, and the questions to put to them.
2
Offset accounts and interest-only home loans
The guidance explains mortgage offset accounts, so a person can judge whether one might suit them. For interest-only home loans it sets out the pros and cons.
A mortgage calculator can estimate the amount a person may be able to borrow, what their repayments might come to, and how they could clear the loan sooner.
The guidance says that help exists for anyone finding home loan repayments hard, and that asking for it sooner leaves more choices open.
3
Switching loans and paying off sooner
Switching home loans has its own question: it asks a person to work out whether a switch could save them money. A switching calculator estimates what a switch would cost, whether it could save money, how long it might take to recover the cost, and what higher repayments could save.
On paying a loan off, the guidance says that small changes in managing a loan can add up over time. The interest-only mortgage calculator works out repayments before and after an interest-only period, the total cost of such a mortgage, and the extra cost it may bring.
4
When repayments become difficult
The guidance says that help exists for anyone finding home loan repayments hard, and that asking for it sooner leaves more choices open. The government agency suggests speaking to a lender when repayments become a struggle.
If a person has received a default notice, the guidance suggests getting free legal advice straight away.
Questions
- What is a home loan?
- The guidance takes in choosing a loan, comparing loans from different lenders, what mortgage brokers do, mortgage offset accounts, interest-only loans, switching and getting help with repayments.
- How does a home loan work?
- The guidance looks at how mortgage offset accounts work and the pros and cons of interest-only home loans, and gives calculators for repayments, switching and interest-only periods.
- How do I compare home loans?
- The guidance covers the things worth checking in a loan and how to weigh up loans from different lenders. It notes that even small differences in interest rates, in costs and in repayments can grow over the life of a loan.
- How can I pay off my mortgage faster?
- The guidance says that small changes in managing a loan can add up over time, and covers paying off a mortgage faster. The switching calculator works out what higher repayments could save.
- What can I do if repayments become difficult?
- The guidance suggests speaking to a lender when repayments become a struggle, and says that help exists for anyone finding home loan repayments hard. Asking for it sooner leaves more choices open. If a person has received a default notice, it suggests getting free legal advice straight away.