In preparing a mortgage proposal, your personal situation and wishes are the focus at AHI. Moreover, your mortgage will be structured to ensure there’s enough money left after commitments to live life as you want to.
An AHI mortgage is built up as follows:
AHI offers two types of mortgages: the annuity loan, and the endowment mortgage. The difference lies in the way the loan is paid off. We recommend you seek advice from our experts or your broker to decide which mortgage structure suits you best.
With an annuity mortgage the principal (the amount you borrow) is paid off over the full loan term. Provided the mortgage interest rate does not change, you will pay a fixed amount each month that is part interest, part repayment. In the first few years the bulk of your monthly commitment consists of interest. As you begin repaying your home loan, the interest part of your monthly commitment gradually decreases, and the repayments increase.
An endowment mortgage is an attractive option for individuals or families on higher incomes. No debt is paid off at any time during the term of an endowment mortgage, only interest. As a result, you benefit from the maximum interest relief (income tax deduction) over the full loan term. You also take out life insurance. If you die before the end of the loan term, your life insurance pays off your mortgage debt.