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Home
Loan Types
There are hundreds of various types of home
loans available in Australia and it is important to know which one
will suite your style of purchase. For example a first home
buyer should consider what not only their current goal is, rather
they should also consider what they intend to do say in five years
time. This will determine how they set up the loan in the
first place and which features will be important to have in their
home loan. The most
common home loans are
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Standard Variable Rate
Loan |
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Basic Variable Rate
Loan |
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Fixed Rate Loan |
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Combination of the
variable rate & fixed rate loan |
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Home Equity Loan |
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Low Doc Loans |
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No Doc Loans |
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All In One Loan
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Line of Credit Loan |
Standard
variable rate - This type of home loan, is one
of the most flexible loans on the market however comes at the cost
of a higher interest rate. With these loans you can pay over
and above your Mortgage repayments, and they have a redraw facility
to access cash when the funds are needed.
Basic variable rate home
loan - This home Loan usually has a lower
rate than the fully featured loan above and often comes as a fairly
flexible home loan these days. Most have redraw facility,
internet & telephone banking, disadvantage is will most likely have
(DEF) deferred establishment fees for the first few years, it is a
good idea to ask us more about this as can be quite costly.
Fixed rate home loan
- The fixed rate home loan protects the borrower from the possible
rise in interest rates; provides peace of mind that if the interest
rates do go up, your mortgage
repayments will not increase during the fixed agreed period. Note if
rates happen to go down you will not benefit from the reduced
amount. If you are considering a fixed loan there is a lot
more to explain, which would be too lengthy to put here as we have
access to over 25 lenders there are so many varieties give us a call
or make an enquiry through this page. For more information on
interest rates
click here
Combination of the
variable & fixed
- Otherwise known as having a split loan, gives
the borrower the flexibility of the variable loan and the security
of the fixed loan, this is sometimes known as hedging your bets.
If you are unsure if you can handle rises in the interest rate and
at the same time require flexibility this may be a good option.
Home equity loan
- An equity home loan is accessing the equity available in your property; it may be
for other opportunities such as investments, renovations or other
projects. For more information re equity loans
click here
Low doc loan
- This home loan often used by the self employed as they often do
not have access to their income financials, less documentation
required. There needs to be a very clean credit
history, we know have low doc loans up to 85% and the lender pays
the Mortgage Insurance. If you would like to know more about
these loans give us a call.
No doc loan
- The low doc home loan virtually
has no paper work the
borrower needs to sign a stat dec to saying they can afford the
loan, this loan does have some restrictions in the (LVR) loan value
ratio
All in one loan
- this home loan has a savings account attached otherwise known as
offset account, these can vary in their functionality from lender to
lender, therefore give us a call to know more about this type of
product. ( can be ideal for investors or those wanting to do rapid
reduction of their loan ).
Line of credit loan
- often favored by investors, as can be kept on interest only for
longer periods, they are slowly becoming less popular as other
products become more flexible.
Home loans in Australia are
changing all the time, as mentioned there are hundreds of loan types
and they vary so much between the lenders. This is the
advantage of using or mortgage broking service, we can help you sift
through what is available and help you structure the loan to your
individual purpose. Give us a call, there is no obligation and
let one of our professional & friendly staff help you with your loan
now.
By calling us now we can
assist you to purchase your home by arranging a home loan for you,
contact us on 07) 31611894 or Mob 0412475554 |
