Home Loan Types

There are many home loan types available in the market for you to choose from. If you don't know which one would work best for you, it would be good to talk to your mortgage lender or broker about these home loan types so that you'll learn about their advantages and disadvantages.

Home Loan Types: Low-Doc Home Loans

Unlike traditional home loan types, low-doc home loans won't require you to provide much documentation as proof of your income, assets, and liabilities. Low-doc home loans are among the home loan types which will just require you to state your income. This is a process called self-verification.

Home Loan Types: Introductory Rate Home Loans

Introductory rate home loans are among the home loan types out in the market nowadays. These introductory rate home loans will offer you with a significantly lower interest rate during the introductory period (which usually lasts from 6 to 12 months, although there are those which have a duration of up to 3 years). Getting an introductory rate home loan will help you save more money not only during the initial period since these can offer reductions in the long run.

Home Loan Types: Home Equity Home Loans

A home equity home loan is a transaction account which will be secured by a mortgage over your residential property. Home equity home loans will allow you to do more than just purchase a house. You may use the loan for other purposes such as renovating your home or paying the bills.

Home Loan Types: Variable Rate Home Loans

Standard variable rate home loans and basic variable rate home loans are home loan types which feature changing interest rates. The interest rates of these variable rate home loans encounter fluctuations because they are based upon the Reserve Bank of Australia's official cash rates.

Home Loan Types: Fixed Rate Home Loans

Unlike variable rate home loan types, a fixed rate home loan will provide you with certainty and security because of its unchanging interest rates. This means your repayments will remain the same over the fixed term.