Types of Loan
Variable Rate Loans
Standard 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 Loans
Fixed 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 Loans
Split 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 Loans
Home 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 Loans
Debt 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 Loans
Low 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 Loans
Non 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 Credit
A 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 disgression. 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 Loans
Interest 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 Mortgage
Reverse 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 - Australia
A 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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