Low Doc Loan
A Low Doc Loan requires less information to be provided to the lender as evidence of affordability.
Standard Variable Loan
The interest is variable and will fluctuate in line with financial markets. This type of product tends to provide borrowers with greater flexibility compared to a fixed rate loan. Standard Variable Loans may also be available with facilities such as offset accounts, direct salary credit and redraw facilities.
Basic Variable Loan
The interest rate is variable and will fluctuate in line with the financial markets. A Basic Variable Loan often doesn't include features such as offset accounts, direct salary crediting and redraw.
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Introductory Loan
Sometimes known as Honeymoon loans, they enable you to commence with a lower rate for a fixed period (normally 6-12 months) and then revert to a higher rate (usually the lender’s standard variable rate) for the remaining loan period. These loans can be either fixed or variable rate.
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Fixed Rate Loan
The interest rate on the loan is fixed for a period of time typically between 1 and 5 years. The benefit of this product is that you know how much you are required to pay during the fixed rate period. However, even if variable rates increase or decrease during the fixed rate period, your repayments will not change. Locking in your interest rate will also reduce some or all of the flexibility available under the variable rate products.
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Line of Credit
This is generally an interest only loan that gives the borrower freedom of choice in respect of principal payment. Monies paid against the loan can be withdrawn up to the original limit.
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Bridging Finance
May be available should you decide to purchase a new home before you sell your existing property. The lender will take security over both properties providing there is sufficient equity and that both debts are affordable. The maximum borrowing is usually based upon 80% of the value of the properties.
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Reverse Mortgages
This loan is designed especially for seniors, allowing them to access the equity in their home. The interest is added to the loan, amongst other conditions. The debt is repaid on death of the borrower or sale of the property.
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Professional Packages
Many lenders offer discounted loan packages to attract professionals or larger loans. Eligibility of a Professional Package is based on the loan size, or could be the amount of salary, or the profession, or a combination of all. Depending on the amount you borrow and the type of loan you choose, you could be entitled to an interest rate reduction and many other benefits in relation to your borrowings under this package. Professional packages usually attract an annual fee in return for a range of benefits.
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