Home Loan

Home Loan

Home loan options are many including portability, extra payments, redraws, so on and so on, not all options are beneficial to your particular needs. 

The main choices of Home Loans are 

Standard Variable Rate (SVR)

The interest rate charged in this product moves both increase and decrease as set by the RBA Reserve Bank of Australia.

You normally take a (P&I) Principle & Interest repayment over the loan term on average 30 years.

Mostly these products allow extra payments without penalty allowing you to reduce your loan term but more importantly reduce the interest charged on your loan.

Fixed Rate

This is a great product for the budget-conscious people, it gives you a fixed repayment for the term of the loan you have fixed. Fixed period in general is 1,2,3,4,5  years. There are a select few lenders allowing for extra payments.

Line of Credit (LOC)

This product works like a credit card. Your loan is approved for a set amount, and you can repay and redraw up to the amount. Repayments are normally based on Interest only payment on the outstanding balance of the loan. This product is for the well-disciplined. The advantage is that you can direct credit your wages to this account in turn reducing the interest charged on your loan balance.

Low Doc Loans

These loans are for the Self-Employed who have not yet completed their Tax Returns. You will sign a stat dec declaring how much income you have to service the loan. The lenders in general, charge a small premium for such a loan.

Full Doc Loans

Generally if you are employed with 3 current pay slips and a copy of the previous year's tax return is usually all that is required to confirm your income.

For Self-Employed persons, the lender will ask for 2 years' full tax returns

Interest Only (IO)

You repay interest only on the loan principal for a period of between one and five years. At the end of this period, you revert to making both principal and Interest repayments. This is also applicable during the construction process.

Split Rate (Principal and Interest)

You can divide split-rate loans between fixed and variable interest rates, selecting yourself how much to allocate to each.