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Basic or premium package? What’s right for you.

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Whether you’re thinking about refinancing or looking to purchase your first home, the world of mortgages can feel like a complete minefield. We understand how difficult it can be to decide on which home loan to go with, which is why we’ve developed a playful guide on how to choose the right one for you based on your mortgage holder personality.

The prudent saver

You have dreams of paying off your mortgage early and have healthy savings habits. On top of your goal-oriented savings, you’ve also built up a bank of funds for a rainy day – perhaps it’s sitting idly in an account you don’t give too much thought to.  

If this is the case for you, make your rainy-day fund work harder by putting it into an offset account that’s linked to your home loan. An offset account allows mortgage holders to offset interest costs with their savings. For example, having $100,000 in an offset account that’s linked to a mortgage of $300,000 means you’ll only pay interest on $200,000. Be wary though, as not all offset accounts are created equal.

Some may only allow you to offset the interest by a portion of your balance. At Gateway, our Premium Package Home Loan offers Members 100% Loan Offset Accounts, meaning you’ll offset interest on 100 per cent of the funds in your account.  

An added benefit that may also be appealing to some is that most offset accounts are at-call. This means you remain in full control over your money and will be able to access your cash instantly should you need to via online banking, mobile banking or a Visa Debit Card.

The risk-averse homeowner

Keeping your finger on the economic pulse is second-nature to you and religiously scouring the news for events that could affect interest rate movements is one of your favourite past-times.

With the current state of economic uncertainty, hearing the word ‘variable’ makes you feel a little nervous. What you’re really looking for is some stability and the assurance of knowing what’s around the corner. 

You’d be happy to trade in the gamble of lower rates now for some certainty, and the ability to sleep soundly knowing you’re steering clear of the ebbs and flows of the volatile property market.

In this instance, you should consider fixed rate options to lock in your repayments. Our Premium Package Fixed Rate home loans give you the option of fixing your interest rate for one, two, three or five years. On top of this, we make sure that fixed remains flexible, allowing you to split the loan into fixed and variable, just in case you’d like to take advantage of current low interest rates while simultaneously hedging risk.

The rate hunter

You’ve finally saved up the deposit for your first home and you’re looking out for low rates and great deals. Your goal is to keep your repayments as low as possible and avoid any ongoing fees while you’re still building your wealth and growing the equity on your home.

If this sounds like you, take a look at a no-frills product that will provide you with basic features and an attractive ongoing interest rate, such as our award-winning Low Rate Essentials home loan. You won’t be paying a premium for the features you don’t need, but you’ll still have the option to split your loan between fixed and variable, make additional repayments and access a redraw facility when you need to.  

Can’t decide where you fit in? Speak to a member of our customer care team today. They can help you find the perfect product to best suit your needs. Call us on 1300 302 474.

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