Fixed Rate
Home Loans
This type of
loan has a fixed interest rate for a
certain period of time, most often
between 2 and 5 years. Once the fixed
rate period ends, customers may be
offered another fixed rate period or
the rate will convert over to a
Variable interest rate, which can rise
and fall.
Basic &
Standard Variable Home Loans
A loan with a
Variable Interest Rate means that the
rate will fluctuate during the loan
term. As interest rates rise and fall,
as set by the Reserve Bank of
Australia, so will the interest rate on
your Home Loan. Standard variable home
loans usually offer more features than
the basic variable home loan- such as
being able to make extra payments or
being able to redraw money from the
Home Loan.
Line Of
Credit
A Line of Credit Home Loan allows
you borrow against the equity in your
home, at an interest only variable
rate. This may enable you to; for
example, invest in shares or managed
funds, investment property, or home
renovations.
Low Doc Home
Loan
This type of loan assists
customers who do not have the full
documentation normally required for a
traditional "full doc" home loan. The
Lo Doc loan normally assists the
self-employed, people that may have had
credit difficulties in the past, or
people who do not have enough
documentation for 'full doc' home
loans.
Split Loan/
Variable & Fixed
Combines different loan types into
one Home Loan. For example some loans
allow you to have one portion of your
home loan at a fixed rate, and another
portion on a variable interest rate.
Another example would be a fixed rate
home loan and a line of credit. Some
loans allow for multiple splits.
Consolidation Home
Loan
Refinancing your existing Home
Loan and paying off other debt- such as
credit cards or personal loans. Putting
a package together that puts all of
your debts, including your mortgage and
other debts, into one home loan. This
can be beneficial as credit card
interest rates for example, can be much
higher than your home loan interest
rate.
Interest
Only Home Loan
This type of home loan allows
customers to make payments in the form
of interest only. This means that no
payment is put toward the principal
balance of your home loan. Many people
see this as a good option to keep their
payments at a lower level while
speculating that their property value
is going to increase.
