Home Loans

What are Home Loans?

A home loan is the agreement that you have between a lender (usually a bank) and a borrower (yourself). The lender will usually require a deposit around 20% of the value of the home to be purchased. The remaining funds on loan will incur an interest charge from the lender that will make them a profit above the cash rate. The term of home loans are usually long term from 15 to 30 years.

Why have a Home Loan?

Home Loans enable you the investor, to have the ability to own a property over time. Paying back your loan is a form of ‘force savings’ that has been shown to be much easier than trying to save for the entire amount of the property. Along with this it is most common for the property to increase in value at a greater rate than inflation.




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