Standard variable loans. Australia’s most popular type of home loan. The interest rate can vary throughout the term of the loan – both up and down. The term can be up to 30 years.
Basic variable loans. A lower interest rate than standard variable loans but with fewer features. Like all variable loans, the interest rate and your repayments can vary over the term of the loan.
Fixed rate loans. Rates and repayments are fixed for a set period; usually between one and five years. Most fixed loans will automatically default to a variable loan at the end of the term, but can roll over to another fixed term.
All in one loans. Variable interest rate loans that allow you to deposit all of your income into the loan and then withdraw money from the loan account for all your day to day purchases. The longer funds stay in the account, the greater the savings.
Line of credit. A line of credit is a revolving credit line secured against a residential property allowing access to funds whenever you need them. Line of credit products are flexible ways to raise funds for investment purposes by providing cash at call up to the prearranged credit limit.
Introductory loans. The interest rate is usually low to attract borrowers and normally are for a period of two years or less. Rates can be fixed, variable or capped. After the introductory period, most introductory loans revert to the standard variable rate.
Reverse Mortgages Loans for seniors with equity in their property. Allows the asset rich to use the equity in their property without having to repay until death.
Combination loans. A combination loan is where the borrower takes a portion of the total amount borrowed under one loan product and the remainder under another, e.g. half the amount borrowed under a variable interest rate and the other half under a fixed rate.
Professional packs. Discounts offered to clients on a high income. These loans can generally package all of the client’s needs into one special package with a discount on the interest rate and fees.
Kiwi Investor Loans. These are for New Zealand investors only. A variable loan that is available to purchase your investment property or to access the equity in your property for any worthwhile personal or investment purpose. Conditions apply.
Non-resident lending. This will vary from lender to lender. Pre-approval of the Foreign Investment Review Board may be required. Maximum loan to value ratio can be 80%. This means that you will need at least a 20% deposit contribution towards the purchase.
Split loans. The ability to have separate loans within the one package.
Pre paid interest loans. Structured to allow the borrower to prepay the interest due on the loan one year in advance.
Self Managed Super Funds. It is now possible for Self Managed Super Funds to borrow.
Construction loan. Where funds are to be used to develop the security property.