It should be remembered that this will, however, increase the total amount of interest that is repaid. It is a good idea to talk to a bank when you are deciding how much you want to borrow and how long you want to take to repay the loan to ensure that what you want to do is acceptable to the lender. Do not commit yourself to the purchase of a house or other major expenditure without first ensuring that you will be able to obtain the finance required. Lack of flexibility can be costly in the future if you find yourself tied to terms which no longer suit you. Banks have the ability to structure repayments to meet the different needs of customers and to allow for flexibility in future repayments.
Borrowers are able to structure repayments to match changing circumstances.
For example, if you are a young couple buying your first home you might wish to pay off more of your loan in the early years when financial circumstances may permit, so a 'high start loan' would suit you. STEP 2 Select the type of loan you require When you have identified your requirements it is time to consider the type of loan you want. There is now a good choice of different types of loans available and you should be able to find one that suits you well. Banks can also provide literature which explains the features of these different types of loans. In addition, for home buyers, most banks have kits which provide helpful information about many aspects of buying a home, not just the different types of home loans.