Despite property prices cooling slightly towards the end of 2017, taking out a home loan remains a financially strenuous task for many Australians, especially first-time home buyers (FHBs). SCU is looking to address this with a new 40 year home loan product designed to help FHBs take out their first loan.
This loan is one of the few long-term loans currently available in the market and features a 3.77% variable interest rate.
"High property prices in many parts of Australia and an older retirement age the long-term loans could become more common in the future."
The loan will only be available to FHBs. Mozo Property Expert, Steve Jovcevski noted that with high property prices in many parts of Australia and an older retirement age, these long-term loans could become more common in the future.
He noted said that young home buyers must pay close attention to the trade-off between making lower monthly repayments on one hand while paying more in interest over the longer lifespan of the loan.