There are thousands of different home loan products on the market, all with different rates,
fees and features. If you haven’t already decided, the following might help you choose the type
of loan that is best suited to your situation. Home loans are generally categorised under:
Standard Variable Rate loans typically offer you maximum flexibility and great features,
including the option to fix or split your loan, the ability to make additional repayments
when you can afford to, and the option to redraw these funds for any
purpose when you need to.
Basic Variable Rate loans offer a lower interest rate, but fewer features.
However, you usuallyhave the option to pay for additional flexibility
and features when you need them.
Fixed Rate loans protect you against interest rate changes for an agreed time,
so you have peace of mind knowing your repayments won’t increase. However,
you won’t benefit if rates go down during the fixed term.
Combination or Split Rate loans combine the flexibility of a variable rate and the certainty
of a fixed rate, so you benefit when rates drop, and are protected when they increase.
Non Conforming Loans have been designed especially to help borrowers who do not meet
‘standard’ lending criteria, including those who have an impaired credit history, are unable
to provide the required documentation in support of their loan application, or wish to
borrow more than 100% of the property value.
Home Equity Loans allow you to unlock the equity in your existing property for other
opportunities such as renovating your home, investing in shares or managed funds,
or financing an investment property.
Line of Credit loans are interest only variable rate loans that allow you to borrow against
the equity in a home with the added flexibility of a transaction account built into the home loan.
All-In-One Loans feature an everyday transaction account linked to your home loan.
By keeping all your money in your loan account, and only redrawing your living expenses
as you need to, you can reduce the amount you owe. This, in turn, reduces the amount of
interest you have to repay, making your money work harder for you.