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If
you want the flexibility to pay extra into your home
loan, while having the access to your money in the
future, you should choose a loan that offers that
flexibility with no penalties. The good news is that
most lenders provide this option. These days the banks
have had to adapt to keep up with their competitors. The
loan products that best provide this flexibility are :
-
Standard
Variable Loan with a free redraw
-
Standard
Variable Loan with 100% Offset
-
A True Line
of Credit or an Equity Loan
Paying extra into your home loan will reduce the amount
of interest paid and also the term of the loan. It is
important to keep in mind that most lenders have
restrictions on how much extra can be paid into a loan
during a fixed term. |