Because of the coronavirus pandemic, home interest rates are the lowest they’ve ever been. At the same time, more and more people are working from home, making them consider switching from living in an apartment to owning their own property. Whether you’re looking for a condo or a full-fledged single-family home, there are dozens of options available for first-time homebuyers. That being said, getting a home loan might be more challenging than you’d think, so it’s a good idea to compare your options first.

When you’re looking for a low rate home loan, there are a variety of choices to weigh. From fully-featured options to more stream-lined packages, there are a few different types of loans to think. Whether you’re interested in a lower monthly payment or something that maximizes your interest rate, here are just some of the loan options to consider as a first-time homebuyer.

Understanding offset loans.

Offset loans combine a home loan and a redraw offset facility to make it possible to reduce the amount of money you pay over the life of the loan. Put simply, a redraw offset facility is similar to a bank account, but with some exciting features that make it a more enticing offer if you’ve also got a home loan. For example, if you have $10,000 in your redraw offset facility and a home mortgage of $250,000, you actually only need to pay interest on the difference of your redraw offset facility and the loan itself. In the previous example, that means you’re only paying interest on $240,000 of your mortgage, which is a win-win if you want to pay off your loan faster and with fewer interest charges.

Super savvy new homebuyers may even choose to have their paycheck deposited into their redraw offset facility. Since the offset facility is fully transactional and linked to a Visa debit card, you can use it just as you would any other bank account.

When a Smart Booster loan might make sense.

If you’re really serious about lowering the amount of interest you pay on your mortgage, it’s hard to go wrong with a Smart Booster loan. With an initial rate of 1.99 percent, you’ll save thousands of dollars over the term of your loan thanks to such a discounted rate. As a discount variable loan, you’ll always stay competitive with your interest rate, and you have a variety of other features that can be helpful when it comes to paying off your mortgage faster.

For example, you’ll get unlimited additional repayments when you set yourself up with a Smar Booster loan, as well as the ability to register for recurring transfers directly from your debit account. This makes managing your mortgage and its monthly payment simpler than ever while allowing you to get the lower rate you’re after to really save money on your purchase.

The right time for a Smart Home Loan.

Not to be confused with the Smart Booster loan, the Smar Home Loan is another ultra-low interest rate loan. When compared to the Smart Booster, the Smart Home Loan is a little bit higher in terms of its interest rate (at 2.57 percent), but it’s important to note that the Smart Home Loan isn’t a variable rate mortgage, so you’ll have that 2.57 percent interest rate on your loan amount for the life of the loan.

This loan type has no ongoing fees and unlimited redraws, just like the Smart Booster loan—as well as the ability to schedule automatic and recurring payments to make sure that your loan amount gets paid appropriately each month. If you aren’t so sure you want a variable rate mortgage, the Smart Home Loan may be an ideal option while rates are this low.