Loan Types

A variable rate loan is a home loan with an interest rate that will change over the loan term, depending on the market. This type of loan allows you to take advantage of any decreases in interest rates and will often offer a wider range of features, such as mortgage offset accounts.

Fixed Rate loans have an interest rate that doesn’t change for a set period of time, usually 1-5 years. As your repayments remain fixed, you have the certainty of knowing what your repayments will be over that time.

Interest Only loans require you only to pay the interest portion of your loan for a particular period. This means that your repayments during this time are lower. Once the set period ends the loan changes to be both principal and interest.

A Construction loan, also known as a building loan, caters to those who wish to build or renovate. Generally this type of loan has progressive draw down to allow for repayments to the builder as certain stages of the build are completed.

A Split or Combination loan, as it is also known as, allows you to divide your loan into part fixed and part variable. This allows you to take advantage of the features a variable loan offers whist also having the certainty that some of your loan is protected against interest rate increases.

A Line of Credit loan provides the ability to access equity that may have built up in your home over time, via a transactional facility with a set credit limit. This approved credit limit is secured against the value of your property.

Most major lenders offer Professional Package loans, which offer rate discounts for larger loans when they are combined with other products on offer such as transaction accounts and credit cards.

Low Documentation loans is a type of loan that can be secured using different income verification documentation then generally required by a full doc home loan. This type of loan may be suitable for a self-employed borrower, someone with a more complex income structure, or someone whose tax returns are not available.

Bridging Finance is a short-term loan option. This loan allows you to “bridge” the gap between the sale of one property and the purchase of another. This can be useful if you’re looking to upgrade from one property to another and the proceeds from the sale of the first property are not enough to cover the purchase price of the second

Non Conforming loans is a loan offered to borrowers who don’t meet the standard criteria of traditional lenders. This may be suitable to those with limited deposit funds or previous credit problems.