Home loans
With so many different lenders and home loan products in the marketplace, finding the loan that best suits your individual needs can be a challenging task. Listed below are some explanations of the various loan types available to prospective homeowners:
- Basic Variable Rate Loans
Basic variable rate loans are extremely popular due to their low interest rates.
The trade-off with these types of products is that they are limited in features
- Standard Variable Rate Loans
Standard variable rate loans are known for their flexibility and features.
Partly fixing, loan splits, offset, additional repayments and redraw are usually
standard with this type of product
- Fixed Rate Loans
Fixed rate loans protect borrowers against interest rate rises for a given period of time although
this can work against borrowers when rates fall. Fixed rate loans are popular amongst investors and home owners
who require a level of security when planning their repayments
- Combination or Blended Loans
Combination or blended loans allow borrowers to split their home loan into fixed and variable portions. This provides borrowers with the flexibility of a variable rate product
along with a measure of security provided by a fixed rate loan
- Equity Loans or Lines of Credit
Equity loans or lines of credit allow borrowers to unlock the equity in their
properties for any worthwhile purpose such as renovating, investing, motor
vehicles, children's education, etc. These types of products provide a low cost
option to other forms of personal lending with the flexibility of allowing
interest to capitalise
- All In One Loans
All in one loans are everyday transaction accounts where salary and expenses are paid and withdrawn from the loan. The idea is that by depositing your salary into your loan account and only withdrawing your living expenses as required, the interest charges are reduced. The trap with this type of product is that it requires a high level of disciple or borrowers could end up spending more than they should. To realise the same benefit whilst minimising the overspending risks,
we recommend a variable rate product with a 100% offset facility.
- Low-Doc Loans
Low-doc loans are a great solution where borrowers can afford loan repayments but are unable to disclose full income details. Low-doc loans are popular amongst self employed applicants or where they have an irregular income stream.
- Non Conforming
Non conforming loans are designed to benefit borrowers who do not meet mainstream lenders' criteria. These types of loans are the perfect solution where a borrowers' credit history may have been impaired due to a one-off situation such as divorce, failed business, illness, or temporary unemployment.
Speaking to a mortgage broker
If these explanations have clarified your requirements, or if you'd like to speak to a mortgage broker about your mortgage needs,
please visit our apply online page to have a broker in your area give you a call