Variable Rate Home Loans
Variable rate home loans are one of the most popular types of home loans in Australia. With this type of loan, the interest rate can fluctuate over time, depending on market conditions. This can be an advantage if interest rates fall, as your repayments will decrease, but it can also be a disadvantage if rates rise, as your repayments will increase. Variable rate home loans can be a good option for those who want flexibility in their loan, but it’s important to budget for potential rate increases in the future.
Fixed Rate Home Loans
Fixed rate home loans offer a fixed interest rate for a set period, usually between one and five years. This can be an advantage if you want certainty in your repayments, as your repayments won’t change during the fixed term. Fixed rate home loans can be a good option if interest rates are low or are expected to rise in the future, but it’s important to be aware of potential break fees if you want to pay off the loan early.
Split Rate Home Loans
Split rate home loans allow you to split your loan between a fixed rate and a variable rate. This can be a good option if you want some certainty in your repayments, but also want to take advantage of potential rate decreases in the future.
Line of Credit Home Loans
Line of credit home loans allow you to borrow money up to a set limit, using your home as security. This can be a good option if you want access to funds for things like home renovations or investment opportunities, but it’s important to be aware of potential interest rate increases and fees.
Low-Doc Home Loans
Low-doc home loans are designed for self-employed borrowers who may not have the same documentation as traditional borrowers. These loans can be a good option for those who have difficulty providing financial statements or tax returns, but they often have higher interest rates and fees.
Construction Home Loans
Construction home loans are designed for those who want to build a new home or renovate an existing one. These loans typically have progressive drawdowns, where funds are released at various stages of the construction process.
Bridging Home Loans
Bridging home loans allow you to borrow money to buy a new home before you sell your existing home. This can be a good option if you want to avoid the stress of buying and selling at the same time, but it’s important to be aware of potential costs and risks.