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How to Choose the Right Home Loan

Firstly, it’s important identify what you need, and then find home loan products that suit your situation. Home loans are categorised as follows:

The two main types of home loans

  • Fixed rate – an interest rate that’s locked in for a set period of time
    OR
  • Variable rate – an interest rate that fluctuates with the market

The two simple loan uses

  • Owner-occupied – for those looking for a property to live in
    OR
  • Investment – for those looking to build a property investment portfolio

The two different repayment types

  • Principal & interest – where you pay off the loan amount plus interest
    OR
  • Interest Only loans - where you only pay the interest

There are some basic things to consider:

Interest rate - try and get the lowest rate you can, as even a small difference can add up to thousands of dollars over the life of the loan.

Loan term – this impacts the size of your repayments and the interest you’ll pay (i.e. shorter term = higher repayments but less interest).

Fixed or variable interest rate – a fixed rate helps you budget because your repayments remain the same, but if interest rates fall, you won't benefit. A variable rate usually offers more loan features, but your repayments will go up if interest rates rise.

Loan features – these include redraw or line of credit facilities and an offset facility that lets you use your savings to lower the amount of interest you pay and reduce the overall cost of the loan. Most of these features cost extra, so choose a loan with only the features you’ll use.

Loan fees - these can include application fees, valuation fees, annual fees, and settlement fees.

Our Tiimely Home application is different to traditional processes. It’s not a manual form that you fill out digitally, but a live application that assesses your information and eligibility in real time. And because our application process is online, we’re able to use the efficiency of our process to offer some of the best interest rates in the market.

Plus, we have experienced brokers if a Tiimely Own home loan isn’t suitable for you.

If you still have any questions or need a little more information, you can contact us at Tiimely Home to assess your individual needs.

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Important information about rates
*Tiimely Own products are subject to loan-to-value ratio (LVR) requirements, eligibility and credit criteria and terms and conditions. Rates apply to new Tiimely Home customers only and are subject to change without notice.

**The rates shown for products available from panel lenders via Tiimely Home brokers are current based on information from panel lenders and are subject to change without notice. The home loan with the lowest current interest rate is not necessarily the most suitable for your circumstances, you may not qualify for that particular product and the product may not include all the features relevant to you. All applications are subject to lender assessment and approval, and eligibility requirements and terms and conditions apply.

^Comparison rates are based on a loan amount of $150,000 over a 25-year term. They factor in fees associated with applying for the loan, ongoing fees and fees associated with leaving the loan. Tiimely Own fixed loans roll to a variable principal and interest rate at the end of the specified fixed term. If the interest only period is not specified, the comparison rate is calculated on a 5-year period.

WARNING: The comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Other important information
+Tiimely Home is known for its fast approvals for Tiimely Own products and responsive service, powered by our technology and supported by our team of experts. Application and approval times are estimates only and not guaranteed. Turnaround times are dependent on individual circumstances. Applications for a Tiimely Own loan may require an assessor to obtain more information. Assessment times for home loan applications made via Tiimely Home brokers are dependent on individual panel lenders.

The information provided does not constitute an offer of credit and does not take into account your objectives, financial situation or individual circumstances. We recommend seeking independent financial, taxation and legal advice to check how the information provided aligns with your individual circumstances.

Tiimely Home receives commissions from Tiimely Own loans and, where customers apply for a loan with the assistance of a Tiimely Home broker, from loans settled with panel lenders. Tiimely Home brokers do not receive individual commissions. More information about the credit services provided by Tiimely Home is available in the Tiimely Home Credit Guide (PDF) and Tiimely Home Broker Credit Guide (PDF).