Considering the ever increasing value of residential properties, buying a home can be a tough task. Therefore, getting into the property market with a limited budget may prompt you to get interest-only loans to at least kick start your financial journey.
Interest-only home loans only last a shorter period of the repayment term. This means during that time you get to pay only the interest on your home loan rather than principal plus interest amount. This reduces your monthly payments during this short period, freeing you little cash to sort other necessities.
Since with an interest-only loan your interest accrues on what is left of your principal amount to pay out, you end up paying more on the home loan in the long run. Thus, interest-only loans should be a short-term solution for you.
Due to the limitations of interest-only loans, you might consider looking for other flexible home loan options such as no-frills home loans, fixed rate home loans, split home loans, or better yet professional home loan packages.
Home Loans for Professionals
Professional home loan packages mainly target high-earning professionals such as medical practitioners, accountants, and lawyers. Most professional home loan packages come with benefits of fee-free transaction accounts and discounted interest rates. The home loans for doctors, dentists and other professionals are more flexible compared to those offered to other borrowers, says MediPro Capital Finance.
The main benefit you can get from a professional home loan package is banking without additional monthly costs. Lenders tend to consider these professionals’ banking needs so that you easily consider their package. Most professional packages may look similar but they contain differences to benefit different people depending on your long-term borrowing needs.
While looking for a home loan for doctors’ package, consider one that allows you to acquire extra properties without valuation fees. In addition, look for one that waives fees when you want to change the type of your home loan, say from a variable rate to flexible rate loan.