Check out some home loan features before signing up for a mortgage.

When you’re about to begin your home loan journey, you must consider all the factors that are beyond just the interest rate. You might not know it, but some home loan features can help borrowers like you save some money and even allow you to manage your loan structure more effectively.


In this post, we’re sharing with you some information on some of the best home loan features that you should consider when finding the right mortgage loan for you:

Redraw Facility

If you plan to make extra repayments on your mortgage, a redraw facility will let you dip into those additional payments you’ve already made. These extra repayments add up separately from the standard repayments. For instance, if your minimum monthly repayments are $2000 and you repaid $5000 one month, you can choose to withdraw those extra payments worth $3000 any time you want. 


Some homeowners redraw their extra repayments to: 

  • Pay bills & debts
  • Fund home renovations
  • Go on a holiday
  • Fund special occasions like weddings


Remember that you can only get the extra repayments you have made—not the regular repayments. Note that funds in your redraw facility can be less accessible than those in an offset account. The funds may or may not be available for same-day withdrawal, and there could be a limit to the number of withdrawals you can make every month. Still, a home loan with a redraw facility is a valuable option. 

Unlimited Additional Repayments

Another feature of many home loans is additional repayment that allows you to pay extra on top of your minimum monthly payments. If the home loan you get lets you make unlimited additional repayments, you won’t have to worry about getting penalised when you pay extra on your mortgage.

100% Offset

This feature is similar to your typical bank account, with the exception that it is directly linked to your home loan. Offset sub-accounts can offset the money in the account against the home loan principal, and you will only pay interest on the difference.

Loan Splitting

When you get a mortgage, you can typically choose between a fixed rate that is locked in for a specific period or a variable interest rate that can change as the market does. But did you know that you can have the best of both?


A splitrate loan is made up of both fixed and variable rate components. Here, you are provided with the security of a fixed-rate loan for a set period of the mortgage and still enjoy the flexibility of the variable portion of the loan.

Flexible Repayment Schedule

While the standard repayment schedule for home loans in Australia is monthly, many lenders let borrowers make weekly or fortnightly repayments. More frequent repayments could mean you’d be paying off more in a year. 


For instance, one year consists of 26 fortnights. This means if you’re paying $1000, then by the end of the year, you’d have paid $26000 as opposed to the $24000 repayment over the year if you pay monthly. So if that sounds doable for you, get a home loan with flexible repayments. That’s a mortgage loan feature that may make your life more convenient. 


When you get a home loan, you’ll have to pay back the loan’s principal and the interest charged by the lender. With an interest-only home loan, there is a certain period when you will only have to pay the interest instead of principal plus interest. It means there would be lower monthly repayments during that specific period. This feature is popular among real estate investors as they can claim the interest charged on their property come tax time.

Repayment Holiday

A repayment holiday allows borrowers to take a break from repaying their home loans. It’s a temporary yet valuable relief for those experiencing financial difficulties. That’s why it’s one of the most sought-after features among home loans in Australia. 


Repayment holidays are typically available for a short period that can go between a month and six months. Many lenders will require that you make additional payments on your home loan before you become eligible for a repayment holiday. So if you think a mortgage holiday will benefit you in the future, make an effort to provide additional payments whenever you have extra cash.

Loan Portability

A home loan portability is a feature that lets you keep the same mortgage loan, including its interest rates, the balance, and any other feature that comes with it, but change properties. It may be the most commonly used feature by those who sell their existing home and purchase a new one. In many cases, settlements must occur on the same day for it to work.

Learn More About Our Home Loan Features Today

In conclusion, many home loan features are worth considering before applying for a mortgage. If you are interested in a repayment holiday, redraw facility or more of these mortgage features, you should speak with an experienced mortgage broker near you.

You can also reach out to us today. Wealthy You is a trusted mortgage broker in Sydney that has been providing reliable services for about a decade. We can provide a mortgage solution that best suits your needs perfectly. Contact us so we can discuss your options. Let’s talk about the many home loan features we can offer!