Which Loan Is Right For Me?

Don’t know where to start when it comes to choosing the right home loan?

With features and fees varying from one loan to the next it might seem like a bewildering array of options, but the good news is that you don’t have to go it alone. At Laungani Finance, our role is to work with you to assess which of these loans will prove the best match to your income, goals, budget and lifestyle.

Fixed Rate (Principal and Interest)

Fixed rate loans are priced according to a pre-determined interest rate and therefore have fixed loan repayments.

The time period of these loans can vary, but you can usually ‘lock in’ your repayments for between one and five years. When the fixed term expires, you can decide whether to fix the loan again for another period of time at the current market rates or convert the loan to a variable interest rate.

Variable (Principal and Interest)

The rate charged on variable loans moves up or down in accordance with interest rates. A basic variable has fewer features and flexibility than a standard variable, which may typically offer low introductory rates and the ability to make additional payments (redraw).

Split Rate (Principal and Interest)

You can divide split rate loans between fixed and variable interest rates, selecting yourself how much to allocate to each.

Interest-Only

You repay interest only on the loan principal for a period of between one and five years. At the end of this period, you revert to making both principal and interest repayments.

Line of Credit

A line of credit allows you to access additional funds by drawing on the equity value of your home. After fixing a limit on how much you can borrow, you direct income from all sources into your loan account and then draw down funds as required.