Standard Variable Loans (and Professional Packages)
Standard Variable Rate loans are based on the official Reserve Bank rate and will vary with time depending on the market. If rates go up so will your repayments and vice versa if they go down.
This type of loan is the most flexible and generally include optional features such as the ability to make extra repayments, to redraw funds or to split your loan, just to name a few.
Fixed Home Loans
A Fixed Rate Home Loan is a loan which secures an interest rate for a fixed period of time. Fixed rates appeal to borrowers who prefer the security of a set repayment, without the worry of a variable interest rate. Fixed Rate Home Loans often offer lower levels of flexibility as a trade-off for the stability of a guaranteed rate.
Line of Credit
Lines of Credit differ from traditional home loans in that they do not require a minimum monthly repayment as long as you do not go above the approved credit limit. This flexibility over traditional home loans allows a borrower to use their income and savings to reduce the balance and reduce the interest payable.
Lines of Credit are suited to borrowers who want flexibility and control over their home loan.
Low Doc loans are a flexible finance solution for self-employed people who have an income and assets but may not have all the usual paperwork such as financial statements or tax returns. With a Low Doc loan you get all the features of a Standard Variable Product such as, access to redraw, flexible repayment options, ability to make lump sum repayments and even mortgage minimization through an offset account.
Low Doc loans have higher interest rates compared to standard home loans.
If you are building your own home or investment property, a construction loan may be suitable for you. Instead of borrowing the entire amount upfront and paying interest on the entire loan amount, a construction loan allows you to draw money as required while building. There are usually 5 stages for progress payments. This also reduces your risk in case your builder fails to build what is contracted. This loan requires a fixed price building contract from a registered builder.
Bridging Loan Products are perfect if you want to purchase your new dream home before selling your existing property. Bridging Finance provides enough funds to cover the full purchase price and associated costs of your new property purchase. However, the lender will take both your new property and your current property as security for the loan. If you have an existing mortgage over your current home the lender will also advance funds to take over that loan and pay out the existing lender.
Bridging Finance generally carries a term of around six to twelve months (depending on the lender) from the date of settlement of the new property and lenders will require an end to debt before considering.