Loan Types

A variable-rate loan has an interest rate that can go up or down over time. If rates fall, your repayments may drop — saving you money. But if rates rise, your repayments go up too. It’s a flexible option with features like offset accounts, but you must watch your cash flow if interest rates rise.

A fixed-rate loan locks in your interest rate for a set time, usually 1 to 5 years. Your repayments stay the same, so you get certainty and can plan ahead. If rates go up, you’re protected — but you won’t benefit if they drop until the fixed term ends.

An interest-only loan means you just pay the interest for a set period — usually 1 to 5 years. That keeps your repayments lower during that time, which helps improve your cash flow. Most property investors use this loan type. After the interest-only period ends, the loan switches to principal and interest.

A construction loan is used when building a new property or doing major renovations. The loan is paid out in stages as each part of the build is finished — not all at once. You’ll need to cover the interest during construction, but most investors only pay stamp duty on the land, which helps with cash flow early on.

A split loan lets you divide your loan into part fixed and part variable. This gives you the best of both worlds — certainty on one side, and flexibility on the other. It means part of your loan is protected if rates rise, while the variable part still gives you access to features like an offset account.

A line of credit loan lets you access the equity in your home, up to an approved limit. It works like a big credit card — you can draw on it when needed, and it’s secured against your property. It gives flexibility, but you need to manage it carefully to avoid building up debt.

Ask your bank or broker for a 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.

A low-doc loan is for borrowers who can’t provide the usual income documents like payslips or recent tax returns. It’s often used by self-employed people or anyone with a more complex income setup. Instead of full paperwork, lenders accept other forms of proof — but interest rates may be a bit higher.

Bridging finance is a short-term loan that helps you buy a new property before you’ve sold your current one. It “bridges the gap” between buying and selling — useful if the sale of your first property won’t cover the cost of the next one straight away. It’s a handy option, but it’s short-term, so you’ll need a clear plan to pay it out quickly.

We work with a panel of non-conforming lenders who offer solutions when the banks say no. These loans are for people who don’t meet standard lending rules — maybe due to a small deposit, irregular income, or past credit issues. They often come with higher interest rates, but they can be a stepping stone back into the market.