There are a large variety of loan types available on the market. Generally the main differences between the loans are based on cost, convenience and reliability. Depending on what you require out of your home loan we will identify the most appropriate loan for you.
Standard Loans (Variable or Fixed rates)
The most commonly used type of loan which offers a wide variety of features. Some examples of these features include redraw facilities, the ability to make extra repayments without penalty, offset accounts and the flexibility to split your home loan. Loan rates can be fixed or variable. Variable rates can go up or down dependingon the official interest rate. Fixed rates mean that the interest rate is fixed for a period of 1-5 years. One restriction of fixed interest loans is that lenders will limit the amount of extra repayments you are able to make without penalties.
Low Doc Loans
Low doc loans are designed for customers who are unable to verify their income with tax returns or pay slips. Some lenders may require a larger deposit and may charge a higher variable rate.
Line of Credit Loans
Line of credit loans will allow you to borrow against the equity in your home or investment property. You only pay interest on the money used and not the actual Line of Credit limit. Interest rates on these loan types are slightly higher than your standard home loan.
Construction loan provides you with money to buy the land and the cost of building or renovating your home. A lender will often release additional funds to pay the builder through each stage of construction with interest only charged on the amount paid out to you instead of the approved amount.