If you are considering taking a home loan, there are certain factors you should consider before opting for loan. The first and foremost of it being is the home loan rates. In a recent update, the National Australian Bank estimated that the demand for mortgages in Australia will remain the same even as the house prices grow consistently. The bank’s head told the press that the price growth will probably settle at 2-3% per year. If the real estate market is changing like this, so are the home loan rates.

first-home-buyer_first-home-loansAustralian market has offers varied types of home loans for enthusiastic buyers. Rates of these home loans keep changing from time to time depending on the market condition. For instance, comparison rate as of June 27, 2014 is ranging from 4.71% to 6.17% among the top 5 private firms and banks. The rates can be calculated mainly based on three factors: loan type, loan purpose and loan duration.

As a buyer, you should conduct a thorough market research to know about the latest trends, different rates, different types of loans available and variations in all these. The following are different types of loans:

  1. Traditional purchase mortgage Loans

  2. Refinance loans

  3. Second mortgage Loans

  4. Fixed and Variable interest rate loans

  5. Building & Construction Loans


  6. Honeymoon and Introductory Loans

  7. Split Loans

  8. Low Documentation Loans

  9. Line of Credit or Home Equity Loans

A buyer must carefully weigh and decide which type of loan suits him/her from the above list. Not only should you consider the changes in rates, but also the various features associated with each of them. Now you must be wondering how to calculate the loan rates. That is also made easy through various lenders now-a-days.

Home Loan Calculators and How to Use Them:

Any basic loan calculator should have the aforementioned three variables in it (type, purpose and duration). You can be either a home buyer or an investor interested in home loan rates. There are a lot of online tools in the market which help you for a better loan search. Also there are expert dealers who reach out audience through their company websites. These sites offer you a great deal of information through means like free PDFs, DIY rate comparisons and personalized services. The services these companies offer are very flexible and fit to any requirements of their customers. Various companies allow users to compare and calculate home loans using different home loan calculators.