This is the fourth article in a series of articles on mortgages in Australia. This series of articles contains some mortgage news as well as some information on home loans and the property market in Australia. Hopefully this information will help you choose the right product for your home. This article continues with an analysis of the different products available today.

Construction Mortgages

Owning your own home is the Australian dream. Many people also dream of building their own home. If you are considering building a house then you might need to finance it with a specialist construction mortgage.

A construction mortgage is a home loan product that is specifically tailored to suit the finance requirements of the house building process. Money is released in stages instead of all at once like it is on a regular mortgage. The money released is used to pay the builder. There are usually about three stages at which money is released, ensuring that you do not pay interest on the whole amount for the entire duration of the construction period.

Once the home is finished being built the construction mortgage will revert to a standard product. Interest will be chargeable on the entire balance and at a normal rate. It is therefore important that you are ready to move into the home immediately otherwise you will be paying interest on a vacant property.

If you are just looking to renovate your home or fix it up a bit you will not need a construction mortgage. Instead, you might like to consider drawing down on the equity in your home. If you have a flexible mortgage product you should be allowed to draw down some funds to fix up your home.

Investment Mortgages

If you are looking to get into property investing then you will most likely need to finance your investment with a loan. Most lenders offer special investment mortgages for this purpose. You can use this type of loan rather than a standard product to buy an investment property.

Traditionally, deposits required on investment properties have been higher than for residential properties. However these days many lenders have loosened the criteria on investment mortgages. Deposits required can be as low as three percent which means that many more people can now enter the property investment game.

Many products also come with flexible options these days. Investors often use equity built up in one property to fund deposits on new property purchases. This means that draw down facilities are a helpful flexible option to have with this type of loan. Many investment mortgages come with flexible options such as this, helping investors grow their portfolios with as little trouble as possible from their lenders.

Property investment has fared well in recent decades and will likely continue to do so. If you are looking to shore up your retirement with investment properties then you should speak to a mortgage broker about your finance options. A good finance strategy used in tandem with a long term investment strategy could yield great benefits in time.

Author Bio: Read the latest Mortgage News and stay in touch with the home loan market at http://www.moneynet.net.au/. http://www.moneynet.net.au/

Category: Finances
Keywords: mortgage news, home loan news