Variable Rate Home Loan Refinancing
One of the most common types of home loan refinancing options available to Australian homeowners is the variable rate home loan. Variable rate home loans offer a range of flexible options, including the ability to make additional repayments, redraw funds, and offset your mortgage with a savings account. Variable rate home loans also often come with lower fees and charges compared to fixed rate home loans. However, variable rate home loans do come with the risk of interest rate fluctuations, which can impact your repayments.
Fixed Rate Home Loan Refinancing
Another popular option for homeowners looking to refinance their home loan is a fixed rate home loan. Fixed rate home loans offer the security of knowing your interest rate won’t change for a set period of time, typically between 1 and 5 years. This can be particularly appealing for homeowners who prefer stability and want to budget for their repayments over a fixed period of time. However, fixed rate home loans often come with higher fees and charges compared to variable rate home loans and typically do not offer the same flexibility in terms of making additional repayments or accessing redraw facilities.
Split Rate Home Loan Refinancing
A split rate home loan is a combination of a variable rate home loan and a fixed rate home loan. This allows you to split your loan into two parts, with one part being a variable rate and the other part being a fixed rate. This can offer the best of both worlds, providing the security of a fixed rate home loan for a portion of your loan while also allowing you to take advantage of the flexibility of a variable rate home loan. Split rate home loans can be a good option for homeowners who want the best of both worlds.
Low Doc Home Loan Refinancing
Low doc home loans are designed for self-employed individuals who may not have the traditional financial documentation required for a standard home loan. Low doc home loans typically have higher interest rates and fees compared to standard home loans, but they offer the flexibility of not needing to provide traditional financial documentation. Low doc home loans can be a good option for self-employed individuals who may have difficulty securing a standard home loan.
Line of Credit Home Loan Refinancing
A line of credit home loan is a flexible home loan option that allows you to access funds as needed up to a set limit. Line of credit home loans often come with higher interest rates and fees compared to standard home loans, but they offer the flexibility of being able to access funds as needed. This can be particularly appealing for homeowners who may need to access funds for unexpected expenses or investments.