Home Loans Guide, Step 2 of 7, Purpose

While it may sound remarkably obvious, when considering which home loan is best for you the first thing you need to establish is why you require the loan.

Each home loan provides different features, some which would suit one person but not the next, so the answer to this question will help steer you down the right path to finding your ideal home loan.

Once you establish the purpose of your loan you can start shopping and comparing lenders and products based on your desired loan requirements to find one that can tailor to your needs.

So, is the purpose of your loan:

Owner occupied – This is for anyone, including first home buyers, who will reside in the property they wish to purchase. You should consider standard principal and interest loans, which can offer fixed, variable and split interest rate options.

Investment property – If you plan on purchasing a property to rent out or renovate and sell, then you may need to apply for an investment loan. If you are purchasing a property for investment purposes you can also consider standard variable and fixed rate home loans but look into loan features each lender is offering to make sure they offer investment friendly features, such as interest only repayments. 

Walk through the complete Home Loans Step by Step guides below;

Home Loans Guide – Step 1 of 7 – Amount
Home Loans Guide – Step 2 of 7 – Purpose
Home Loans Guide – Step 3 of 7 – Type
Home Loans Guide – Step 4 of 7 – Deposit
Home Loans Guide – Step 5 of 7 – Features
Home Loans Guide – Step 6 of 7 – Application
Home Loans Guide – Step 7 of 7 – Fees & Charges

Compare home loans in Australia