Types of Home Loans
Home Loan Types
Fixed interest rate home loans
Variable interest rate home loans
Split home loans
Bridging home loans
Lines of Credit
Low Doc home loans
Fixed interest rate home loans
Enjoy the security of a fixed interest rate home loan. If you choose to fix your interest rate, it will not change during the fixed rate period and your repayments will remain the same. A fixed rate home loan can be advantageous if variable interest rates rise, or during an uncertain economic climate.
On the downside, a Fixed Rate home loan does often have limitations on estra repayments, and break fees if you need to break the fixed rate contract before the fixed rate expires. Talk to us before you decide if this is right for you.
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Variable interest rate home loans
A Variable interest rate loan is usually a fully flexible loan, which is subject to interest rate increases and decreases in line with the Reserve Bank policies and individual lender policies. There is a wide range of variable rate home loans currently on offer in the market place, each offering a range of different features, benefits and fees.
FINWEB loan consultants keep up to date with variable rate loans offered by a range of lenders and can find the loan that best suits your needs.
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Split home loans
A split or combination home loan brings together the benefits of variable and fixed interest rates into a single home loan. This feature allows you to customise your home loan to reduce the effect of interest rate changes. The loan can be split in many ways, however a 60% variable and 40% fixed or 50/50 split is most common. If you need the security of a fixed rate home loan, but want the flexibility of a variable rate, then a split loan may be the answer.
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Bridging home loans
If you have found your next home, but have not yet sold your existing property, bridging finance may be the best option. If it is not possible to achieve simultaneous settlement, a bridging loan can be used to cover the finance gap between the purchase of a new property and the sale of an old property.
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Line of credit
A line of credit is a flexible transactional mortgage that allows you to access your funds through a variety of methods including credit card, cheque or EFTPOS.
A line of credit is a great option for those wishing to access the equity in their existing home for investment or other purposes such as renovations, a holiday or buying a car.
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Low Doc home loans
Low doc loans are designed specifically for self-employed borrowers who are not able to disclose their income. Instead of providing tax returns or extensive financial statements, borrowers can sign a form stating their income.
Low doc loans are available as fully featured home loans or lines of credit but may be at a higher rate than standard loans.
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