Standard Variable rate loans are the most common type of home loan in Australia. The interest rate on a Variable loan moves up and down with movements in the Reserve Bank cash rate and may be influenced by your banks cost of funding.
A fixed rate loan has a fixed interest rate which doesn’t change during the term of the fixed rate period. Fixed rate terms vary between 1, 2, 3, 5 and 10 years.
Basic home loan offer a low ongoing interest rate and often reduce fees (including application fee) at the expense flexibility and convenience.
Split rate loans are divided into separate loans, whereby, one part is variable and one part fixed. The borrower decides what portion is variable and fixed.
Interest only loans require only require interest payments on the loan for an agreed period of time. Interest-only periods are usually 5 years although some lenders offer longer interest only terms.
A line of credit (LOC) is a type of loan drawn down using the equity in your home or investment property and repaid as the borrower chooses with interest being charged on the outstanding balance.
A home equity loan allows you to borrow against the equity in your home to carry out renovations, pay bills, provide a deposit for a family member to purchase a property, invest in shares or add to your property investments.
Low Doc loans or low documentation loans are a flexible loan option for the self-employed and are typically designed for borrowers who are not in a position to provide tax returns and financial statements as evidence of their income.