Home Loans – A Comprehensive Guide

Home ownership is a key part of the Australian dream. And while it’s not always possible to buy a home outright, taking out home loans in Australia is one way to make your dream a reality. But with so many different home loan products on the market, it can be hard to know where to start. This is where a mortgage broker can help. A mortgage broker is a professional who can help you find the right home loan for your needs and guide you through the application process. In this blog post, we’ll take a look at the different factors to consider when applying for home loans in Australia.


When it comes to home loans, your “principal” is the amount of money you’ve borrowed from your lender. This is the amount of money you’ll need to repay, plus any interest and fees that are charged. Your monthly repayments will usually be made up of two parts – the “interest” portion, which goes towards paying the interest on your loan, and the “principal” portion, which goes towards repaying the money you’ve borrowed. The principal is the amount of money you borrowed, and it’s important to remember that you’ll need to repay this, plus any interest and fees when you finish your loan. 

Interest Rate

When it comes to home loans in Australia, the interest rate is one of the most important factors to consider. In Australia, the interest rate on home loans is generally lower than in other countries. This is because the Australian economy is strong and stable, and the government offers incentives to encourage home ownership. However, even a small difference in interest rate can make a big difference in the amount of money you end up paying for your home loan. It’s important to compare interest rates from different lenders before you decide on a home loan. 

Loan Period

When you’re considering a home loan, one of the first things you’ll need to think about is the loan period. This is the amount of time you’ll have to repay the loan, and it can have a big impact on the amount of interest you’ll pay. The most common loan period in Australia is 30 years, but you can also choose shorter loan periods of 25 or 20 years. Or, if you’re looking to pay off your loan faster, you could opt for a longer loan period of 35 or 40 years. The loan period you choose will affect your monthly repayments, as well as the total amount of interest you’ll pay over the life of the loan. 

Redraw Facility

Redraw facilities are not available on all home loans, so it’s important to check with your lender before you apply for a loan. How does a redraw facility work? A redraw facility allows you to access the extra repayments you have made on your home loan. This money is typically held in a separate account and can be accessed via an online portal or by contacting your lender.


In conclusion, a home loan is a huge financial commitment and it’s important that you understand all the ins and outs before signing on the dotted line. Use this comprehensive guide to help you make an informed decision about whether or not taking out a home loan is the right move for you.

Please get in touch with Fincue regarding any queries related to home loans in Australia or other services offered by Fincue. You can call us at +61 490 348 767 or shoot an email at info@fincue.com.au.