Posted on Jul 27, 2018
Wilson Finance Solutions
It’s no secret that everyone has different financial circumstances and goals. Whether you’re taking your first step in to the property market, or have an aggressive investment strategy, no two applications are the same. It’s important to understand the different loan features available to you. With access to many hundreds of loan products there is a wide array of features for different situations. Understanding these features can help you better manage your finances and even pay off your mortgage faster. Here we look at the different loan features and explain them in more detail. Professional Packages The majority of lenders typically offer professional packages. With this option you are required to pay an annual fee but in exchange for different benefits. Dependent upon the lender, this could be anywhere form $250 – $395 per annum. Benefits you may receive could include: Waiving of fees, such as application fees, valuation fees and monthly account keeping fees. Fee free Offset account(s) Fee free Credit Card Extra Repayments Paying only the minimum is enough to meet your repayment obligations. But it also means paying more in interest over the life of the loan. Making extra repayments allows you to pay more of the Principal debt, potentially saving you thousands of dollars in interest. For example, paying an additional $100 per week off a $300,000 loan on 4% interest would save you $85,000. You’d also pay the loan off 10 years faster.