Basic Home Loan
As the name suggests this is a basic loan, and often comes with additional features that can incur a pay for use cost. (Not always as cheap to run as the interest rate implies) As with a standard variable rate, the rate may go up or down over the term of the loan.
Discount variable / Honeymoon / Introductory Rate Loans
These loans are usually fixed for a year or six months and then often revert to a standard variable rate. You can sometimes switch to a lower rate after the discount period has finished for a fee.
Fixed Rate Loans
Your interest rate is fixed for a specific term (usually from 1 to 10 years). With a fixed rate you know what your repayments will be for that term, but you are often limited in your ability to make extra repayments. If you want to break the fixed rate you will probably incur early break costs.
Lines of Credit / Equity loans
These loans allow you to take advantage of any equity you have in your home by setting a loan limit and giving you access to the funds for whatever you want them for. Most lenders require an interest only repayment based on the outstanding balance.
Low Doc Loans / Self Employed
These loans allow the self-employed to declare their income through Bass Statements, Trading Statements or an Accountants Declaration rather than providing financial statements and tax returns. These loans are designed for the self-employed who haven’t fully completed Tax Returns.
A facility aimed predominantly at retired people to provide either an ongoing income or a lump sum. The loan is taken against equity in the home, and usually no repayments are required, but interest will capitalize on the loan.
A construction loan is different from a normal home loan because it can be drawn in stages rather than a lump sum at settlement. These stages are in line with the stages of construction. The loan is normally at a variable rate during construction, and you normally make interest payments on the amount drawn down only.
These loans usually offer a discount on the Standard Variable Rate and extra benefits such as credit cards and other banks services inclusive in an annual fee. They are normally available on loans above $150,000.00.