There are many types of home loans available in the Australian housing market, each with their own advantages and disadvantages for a variety of different types of borrowers. Choosing the best home loan that’s right for you depends on your overall affordability. Variables such as how much you can pay monthly, the amount of your down payment, the reason for your loan, stability versus flexibility, your current employment situation, current assets, age, and your finance goals now and in the future.
Standard Variable Rate Home Loan
This is a flexible, adjustable rate loan and is the most popular variety of loan in Australia. As the name suggests, the interest rate of a variable rate loan is not locked. It changes regularly and is linked to the Reserve Bank of Australia’s rates with the final amo…Read More
Basic Variable Home Loan
Like the standard variable loan, the basic variable home loan features an adjustable interest rate that changes according to the rates set by the Reserve Bank of Australia and individual lenders’ policies, fees and rates. Where this loan is considered “basic” inst…Read More
Split Rate Home Loan
A split home loan, also known as a “combination” loan, offers the attractive features of both variable and fixed loans. With a combination loan, a borrower has their loan broken into two parts. One part has a fixed interest rate, while the other part has a variable …Read More
Honeymoon Rate Home Loans
In an introductory rate home loan, the interest rate is lower for a period at the beginning of the loan (the “honeymoon” period), and then goes up. The honeymoon period is typically one year, but the specifics (duration, rates, fixed or variable) vary by lender. Thi…Read More
Line of Credit Home Loan
The line of credit home loan, which is also known as an Equity Home Loan or a Revolving Credit Home Loan, the home’s equity (the difference between what the home is worth and what you owe on it) functions as a line of credit available to the borrower. The home owner c…Read More
Low Doc Home Loan
A low documentation loan can be helpful for borrowers who don’t have adequate records or credentials to secure a traditional loan. This includes borrowers who are self-employed or borrowers without sufficient financial records like tax returns or satisfactory proof of…Read More
Bridging Home Loan
A bridging loan is a handy tool for home owners who are trying to sell their old home and buy a new one. It is difficult to perfectly time the purchase of a new home with the sale of the old home. A bridging home loan allows a buyer to purchase their next home right …Read More