Standard Variable rate loans

The Standard Variable is the most common home loan. It is based on the housing market's variable rate of interest. Just as it is subject to rate rises this home loan can also provide you with interest rate decreases should the rate go drop during the year. Generally taken as part of a professional package.

These home loans are the most flexible offering a range of features: 

Additional Repayments
Additional repayments are not only permitted without penalty but encouraged, with features such as Direct Salary Crediting and Redraw.

Redraw
This feature gives you quick access to any additional payments you have made on your loan. Additional payments are those extra payments you make above the normal scheduled repayments. To access your additional funds, the redraw option needs to be available and activated on your home loan. You can transfer the funds from your home loan account into your transaction account; however, a redraw fee may apply in some cases.

Direct Salary Crediting
You can have your salary deposited direct into your home loan, thereby reducing your home loan balance and saving you interest. You can still draw on this money using the Redraw facility.

Offset
Use your savings account to save interest on your home loan. With an offset loan every dollar in your savings account is credited against your home loan. Every day that you have extra money in your savings account saves you interest on your home loan.


Portability
This is the ability to move your home loan as you move homes. It's convenient because you save the time and trouble of establishing a new loan and save on fees and other costs.

Payment Frequency
You can nominate to make your repayments weekly, fortnightly or monthly. The more frequently you make repayments, the more interest you will save over the life of your home loan.

Repayment Holidays
If you need a break from your loan repayments, you can access the repayment holiday option. To get access to this option you must build up extra funds in your loan account by making additional repayments. These extra funds are then used to meet your normal loan repayments while you take a break for a short time. A repayment holiday fee may apply.

Top Up
Extend the limit of your existing home loan. If you're planning things like renovations or an extension and you need extra funds, a top-up lets you increase the limit on your existing loan. This saves the time, hassle and expense of establishing another home loan.



Introductory Home Loans
Introductory Home Loans are also known as 'Honeymoon' Loans. These loans are Standard Variable Home Loans that offer a discounted interest rate for an introductory period, which is commonly 12 months.

Guaranteed Rate
When the rate is guaranteed, it is fixed for the introductory period. During the introductory period extra repayments are limited and all the other Standard Variable Home Loan features are not available until the fixed introductory period expires.

Discount Rate
When the rate is discounted it is still variable, and is subject to rate increases and decreases. However, the rate is always below the standard variable rate by the amount of the discount.

Introductory loans provide you with a head start on paying off your home loan. At the end of the introductory period, your loan reverts to the Standard Variable Home Loan. Or if you like, you can choose another home loan option. Introductory Home Loans are only available for new loans and attract a penalty for repayment of the majority of the loan within 5 years.

Basic Home Loans

These are on offer from most lenders, and are basic loans or “Discount Home Loans” with no or very few extras and less flexibility. In return for fewer features, you get a lower interest rate than the Standard Variable rate.

Additional Repayments
In most cases additional repayments are permitted; however, they may be limited.

Redraw
Some basic home loans have a redraw feature; however, it can come at a cost of up to $50.00 per redraw.

Direct Salary Crediting Not Available

Offset Not Available

Portability Not Available

Payment Frequency Monthly only – this might not be the best option for you if you are looking at paying loan off quickly.

Repayment Holidays Not Available

Top Up Not Available

Fixed Rate Home Loans

With a Fixed Rate Home Loan you can choose to fix the interest rate for a set period, usually between one and five years. After this, a new fixed rate can be agreed upon, or the loan can revert to the lender’s Standard Variable rate.

Having a fixed-rate loan can be wonderful for a borrower if interest rates go up. They also allow you to manage your loan repayments so you can budget for other financial priorities in your life. Fixed rate loans only allow limited additional repayments without penalty. Once the fixed term of your loan ends, you can choose another fixed rate or convert to the Standard Variable Home Loan rate.


Line of Credit

A Line of Credit provides you with the flexibility you need, allowing you to unlock up to 90% of the equity you have in your property, at any time. A Line of Credit facility also allows you to combine your transaction account, savings account, home loan and personal loans into one account, making your money work harder for you. Everything you earn goes into it, and immediately reduces your outstanding loan balance, automatically reducing the interest you pay.

Everything you pay comes out of the Line of Credit. The difference between your income and expenses goes towards paying off your loan quicker. Use your interest free period on your credit card to leave money in your Line of Credit for longer, saving you more interest.

Family Loans

In some instances it is possible today to obtain loans with no deposit at all, depending on your circumstances. Some may not be qualified for these loans. The other alternative for you if you can not come with the deposit needed is to use equity in other family member’s property.

Usually, you will use 80% of the property you are buying as a security, and the other 20% you can use other family member’s property as a security. This usually allows the guarantor(s) to nominate a specific amount that the guarantee is limited to (the 20 %).

Also these loans usually allow the guarantor(s) to be released from the guarantee much sooner than would normally occur.

By reducing your Loan to Value (LVR) ratio, you can reduce or avoid paying Lender's Mortgage Insurance.


Margin Lending Loan
A Margin Lending facility is a Line of Credit facility that is secured by cash, shares and/or managed funds, to enable you to leverage, diversify and grow your investment portfolio larger than you might otherwise. A Margin Lending Facility provides you with the potential for tax effective financing and access to competitive variable and fixed interest rates.