subject: Different home loans in Australia [print this page] A wide range of home loans is available in Australia to cater different situations of borrower.
Let's explain in brief some of the home loan choices:
Basic Home Loans
Basic Home Loan usually offers a very low variable interest rate with negligible regular fees. But keep in mind that they usually don't offer additional extras or flexibility in paying of extra on the loan or varying your repayments.
These loans are suited to people who are happy to pay a set amount each month for the duration of the loan.
Variable Rate Home Loans
Variable rate home loan is referred as an adjustable rate mortgage and is a very popular home loan due lower interest rates and mortgage payments.
Combination Home Loans
Combination Home Loans combines features of both the fixed and variable loans, where a flexible rate is applied on a loan portion and the fixed rate is also applied on the balance. The buyers are benefited when there is a drop in interest rates and protect the buyer when there is an increase in loan interest rates.
Fixed Rate Home Loans
Fixed rate home loan offers same interest rate and principal payments throughout the course of the loan, regardless of what else happen.
Interest Only Home Loans
Interest Only Home Loan allows many people to qualify for a larger loan amount and is a great option for those that have a lot of liquid cash.
Low Doc Home Loans
Low-doc home loans are high risk home loans in which the borrower is either unable to or unwilling to submit income proof, but has its own requirements, which you are required to furnish to the lender to get an approval for the loan.
Introductory Rate Home Loan
Introductory Rate Home Loan offers lower interest rates than the standard fixed or variable rates for the initial period of the loan before rolling over to the standard rates and is attractive for the same reason and allows flexibility by allowing you to pay extra off the loan. Span of rebate depends on the lender.
People looking to minimize their initial repayments must go for Introductory Rate Home Loan.
No Deposit Home Loans
No Deposit Home Loan is a flexible alternative to first home buyers, which enables the purchaser to borrow maximum percentage of the purchase price, without affecting eligibility for the First Home Owners Grant or first home buyer duty exemptions.
Line Of Credit Home Loans
Line Of Credit Home Loan is a pre-approved limit of money you can borrow either entirety or in bits and is popular due to its flexibility and ability to reduce mortgages quickly.
Non Conforming Home Loans
Non Conforming Home Loan is provided by non-bank lenders where interest rates are higher due to the greater risk and shorter life of the loan.
