FEATURES TO LOOK FOR IN A HOME LOAN

At a time of historical low interest rates, low fixed rates sound tempting. But they can come with the downside of reduced flexibility. High break costs apply on the off chance that you need to repay the loan early or migrate, and while some fixed loan allow some extra repayments, there are normally restrictions and some loan don't allow extra repayments at all, which can cost you in resulting in high amount of interest over time.
Don't try to beat the bank – it's very hard to predict if you'll save with a fixed rate over the next three or five years.
Instead, ask yourself if you can afford higher rates. If not, fixing at least part of the loan could be a good option for you. A split loan offers the best of the two worlds, enabling you to make extra reimbursements in the variable part of the loan and as yet giving you the security of a fixed rate.

1. Flexible repayments

Do you want to be able to manage how frequently you make repayments? The capacity to choose how often you repay (weekly, fortnightly or monthly) means you can match your repayments to your pay cycle, which can help give you greater control of your finances. 

2. Additional repayments

At some point throughout the life of your Mortgage Loan you may find yourself coming into some unexpected money. Being able to put this money towards your home loan on top of your regular scheduled payments can help you save on interest and ultimately pay off your home loan faster.

3. Redraw facility

Some home loans let you not only make additional repayments but also redraw these repayments. This can serve two purposes – it can reduce your interest repayments (the lower your outstanding debt, the less interest you’ll have to pay) while .3also providing you with a ready reserve of funds if you need them at some point in the future.

4. Repayment holiday

A repayment holiday is a break from making your house loan repayments for those events where you may need to coordinate your cash somewhere else – perhaps because your partner is going on parental leave, for example, and you’re moving from a double to a single-income household for an extended period.

5. Offset account

Typically, a balanced account is a transaction account connected to your House Loan Dubai into which you can get funds paid and use for your everyday costs. The difference between this and a regular transaction account is that any money you carry in the account is offset against your home loan balance, so you can pay less interest on your home loan while as yet having simple access to your money.

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