Obtaining a Home Loan in Australia
The best place to start your home loan search
Obtaining housing finance in Australia can appear a daunting process due to the large number of lenders and competing products, so having access to the right information can make a big difference.
Educating yourself about home loans is the only way to avoid paying more than necessary to banks and other lenders. Lenders are in business to make a profit from rates and fees at your expense, not to offer free advice. Their loyalty is to their shareholders, not their customers.
Using a Mortgage Broker to find you the best home loan is a good alternative but only if you ask the right questions.
Ultimately you are the one who signs your name to the mortgage and accepts the financial responsibility. It is up to you to confirm you have been offered the best possible home loan.
This site aims to empower you the borrower with knowledge based on my 20 years of experience in obtaining finance to buy houses, land and investment properties in Australia.
Std Variable Rate Loan
Basic Variable Rate Loan
Fixed Interest Loan
Split Rate Home Loan
Home Equity Loan
Debt Consolidation Loan
Low Doc Loan
Line of Credit
Interest Only Loan
Refinancing in Australia
Home Loan Resources
Types of Loan
Variable Rate LoansStandard Variable rate loans and Basic Variable loans are the commonest type of home loan in Australia. Very popular over many years as the standard home loan, they are currently just above 20 year lows in terms of finance rates. Still a very good option for most home buyers. The Basic "no frills" loan is usually the cheapest type of loan on the market but lacks flexibility. Rates for both types are usually very competitive among lenders. Construction loans and renovation loans are examples of other types of variable loans. For detailed variable loan information - click here
Fixed Interest Rate LoansFixed interest rate loans are often used by investors to ensure costs do not exceed income on their investment properties. These days they are also used by ordinary house buyers who want to take a conservative approach in case of increased rates. The rate is higher than on a variable rate loan. For detailed info. on fixed interest loans - click here
Split LoansSplit loans are a combination of variable and fixed rate loans. They are a compromise designed to minimize the impact of fluctuating lending rates. Good insurance in uncertain times with an each way bet. For detailed information on split loans - click here
Home Equity LoansHome Equity loans allow you to borrow against the equity in your existing home. Funds are commonly used to improve an existing property by additions, alterations or renovations or as a deposit on an investment property. When funds are used in this way they can increase the value of your home or property portfolio, adding more equity. Used for vehicles, boats or holidays borrowed money can be a liability. Typically this is a variable rate loan. For detailed info. on home equity loans - click here
Debt Consolidation LoansDebt Consolidation loans are used to amalgamate various loans into a single loan resulting in only a single loan payment per month. Usually debts with higher credit charges are rolled into an expanded home loan, extending the term but reducing monthly payments. Consolidation loans need to be used correctly to achieve long term gains. For detailed info. on debt consolidation loans - click here
Low Doc LoansLow Doc loans are available to the self employed who traditionally have had problems borrowing money because of irregular incomes or delays in obtaining a current tax return. It usually costs a little more than the variable rate but the opportunity to move to the standard rate exists when certain conditions are met. For detailed info. on low doc loans - click here
Non Conforming LoansNon Conforming loans are available to certain borrowers who have poor credit histories depending on their current financial situation, and the location and value of the home being used for security. Rates are higher than standard variable and depend on the risk profile of the borrower. For detailed info. on non conforming loans - click here
Line of CreditA Line of Credit is a flexible type of loan having certain characteristics in common with a credit card. There is a specified limit up to which a customer may draw at their discretion. Interest rates are similar to a standard variable loan. Popular with property investors in Australia in combination with other finance. For info. on a line of credit - click here
Interest Only LoansInterest Only loans are often used by property investors in Australia to minimise expenses and increase income. Monthly costs are usually lower than a variable loan as repayments are only made on interest during the term of the loan. For detailed info. on interest only loans - click here
Reverse MortgageReverse Mortgages are designed to assist retirees who are asset rich but cash poor to access equity in their home without selling the property. There are no monthly repayments and interest and fees are capitalised. For detailed info. on reverse mortgages - click here
Home Loan Resources - AustraliaA home loan utility area where we list information relevant to Australia, including resources and tools you may require to find, apply for, or settle on a loan or property purchase. There are mortgage calculators, a borrowers check list, information on Credit Comparison Rates, recommended loan/mortgage brokers and recommended Solicitors/Land Brokers. Also other useful web-sites and a recommended book list for further quality information if you are looking to purchase property in Australia. For more info. on home loan resources for Australia - click here
Thank you for visiting our web-site. We hope the overview on Home Loans in Australia has proven useful.
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