Loan Features
At The Finance Architect, it's our responsibility to guide you in the way of which features and benefits are best for you. There are a plethora of options out there and each individual will have their unique requirements, so we'll make sure we explain everything in an easy-to-understand manner in order to help you make an informed decision.
A guide to some common loan features and benefits
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Offset AccountAn offset account works just like an everyday savings or transaction account complete with ATM and card access. This account is linked to your home loan and is a great way to reduce the amount of interest payable over the life of the loan. The more money you have in your offset account, the more money you'll save. For example, say you have a loan of $400,000, and you have $25,000 sitting in your offset account, you will only be paying interest on $375,000.
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Redraw FacilityOnce you have made additional repayments over and above your minimum repayments, you may have access to 're-draw' the additional contributions. Some lenders do have minimum dollar amount re-draw conditions and sometimes additional fees are associated so it's prudent to check the terms and conditions prior to accessing your re-draw facility.
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Extra RepaymentsMaking extra repayments is a great way to reduce the term of your loan and in turn, save you money. Any additional funds are deducted from the principle of the loan. If, in an emergency you needed to access these funds, you may be able to using a Redraw Facility.
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Weekly or Fortnightly RepaymentsMany people choose to have their loan repayments come out on the same cycle as their salary gets paid, however paying your loan off more regularly than monthly, for example fortnightly or weekly, increases the amount of payments you make and saves you interest by means of reducing the life of the loan
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Professional PackageA professional package was originally introduced for people with larger home loans however in reality, these are available with nearly every type of home loan on the market. Put simply, it is the loan with all the bells and whistles - credit cards, offset accounts and sometimes added bonuses like frequent flyer points. What's the catch, well most of these professional packages come with an annual fee.
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