Types of Home Loans
A guide to the types of home loans out in the market
| Basic Home Loans | Standard Variable Rate |
| Fixed Rate | Split Rate |
| Interest Only loans | Line of credit loans |
| Lo Doc loans | |
Interest Rate Types
The two types of interest rate, fixed and variable. The fixed home loan gives you a stable payment no matter what happens with the market interest rate. This home loan type is also good for handling your finances as it provides stability against possible rate hikes. Repayment flexibility for fixed rates is limited can penalize people who want to pay off their loan quickly.
Variable home loans go with the market rate and allow a borrower to make extra repayments. Most borrowers opt for the variable rate as market conditions are always changing and variable rate is often lower than the fixed rate.
If you cannot decide between the two, why not get both with a split loan. With this type of loan, you can pay a portion of you loan via a fixed rate and another portion through a variable rate. This type of home loan allows you to make extra repayments, gives you repayment flexibility and stability with the fixed rate portion.
