Category : Finance
How does it work?
Flexible finance works like most other mortgages – you have a rate and a debt and they must be met. But flexible finance allows you to choose how you pay that debt off. Maybe you are struggling and need to take a payment holiday, well you can with these types of mortgages. Or maybe you just need to change the amount you pay at the end of the month – either an over payment or an underpayment is possible with flexible finance. Of course your debt and your rate may be affected by your choice of payment method but the important thing is that if you need it, it’s there.
With flexible finance there are also options to change your type of mortgage. Lenders are now offering deals that will allow you to switch from a fixed rate to a tracker rate at any give time. This means you can take advantage of whatever economic situations arise in the AU in the future. Flexible finance of this kind must always be taken after advice, but again it’s there if you need it.
Is it complicated?
Flexible finance is not complicated at all. Many people may feel like they are out of their depth with rising mortgage rates and tightening credit. Add to that the rocketing prices of food, energy and fuel and you may think it could all be too much. Lenders of flexible mortgage for investment property understand this, and that’s why they make sure that borrowers are fully advised and fully up to date with all their flexible finance products.
Will I be eligible for it?
The only way to know if you are eligible for flexible finance is to ask. The first step is to talk to your current mortgage lender. Ask them if they offer flexible mortgage deals and tell them why you should be eligible for it. Whatever they say, don’t sign on the dotted line just then. Ask other lenders if they have a flexible finance mortgage that could help you. The best way to get the best deal is to do your homework.
Finally, take all your offers to a licensed mortgage broker and see what they can offer you. The finance broker perth may tell you to take one of your existing offers or they might find you a better flexible finance deal themselves. Regardless of where you get your flexible finance deal, make sure you have the advice and the knowledge of what you are getting into first.