Home Loan Types
Each person is different and as a result there are many home loans available to suit a variety of needs. This article will explain what types of home loans are offered and who they are suited to.
Why are There Different Types of Home Loans
There are a variety of home loans that are available on the market. Each home loan type has its own advantages and disadvantages and therefore they will suit different people. This section will explain why different home loan types are offered:
- Different repayment schemes. Different loans will have different repayment schemes. Some loans may make you pay only the interest for a while or they may even allow you to repay your loan monthly, fortnightly or weekly. As different loan will have different repayment schemes you can be sure that you can find a loan that will suit how you earn and spend your money.
- Different incomes. People will have different incomes. People on tighter budgets have very limited amount of money they can dedicate to their loan while people on larger incomes will have much more disposable income. Most providers will be able to offer different loans to suit people of all income types.
- Personal preference. The way you repay your home loan basically comes down to your personal preference. You may prefer to pay the loan off each week when your pay comes in through direct deposits. However you would like to pay off the loan there a variety of loans that will suit your needs.
What are the Different Home Loan Types
There are a variety of different loan types. This section will explain what types of loan types there are and who is suited to each of the loans. The loan types are:
- Variable. The variable rate loans are loans where the interest rate will vary. This means that if the interest rates will rise or fall your repayments will do the same. These loans are suited to people who would like flexibility of being able to pay the loan when they want. Furthermore, these loans are also suited to people to people who would like to save money when the interest rates fall but have enough income to pay the increased payments when they rise.
- Fixed. With the fixed rate loans the interest rates will stay the same even if the interest rates rise. These loans are suited to people who would like stability in their repayments. The fixed rate loans will usually require you to repay the loan each month. Furthermore, they will be suited to people who are on a fixed income. Because the repayments will not change over the fixed rate term you can be sure that you will always be able to afford the repayments.
- Line of Credit. Line of credit loans are a specific type of loan that is usually best suited to investors. The line of credit loans are best suited to people who would like the most flexibility that is available under a loan scheme. Most line of credit loans will allow you to pay only the interest that accumulates on your loan or they may even allow you to make no repayments for a while if the amount you owe is below the agreed limit.
- Home equity. Home equity loans are home loans that use the equity from one property to purchase another property. This loan is obviously suited to people who have paid off some of their existing home loan would like to use the equity to invest.
When you are applying for a home loan it is important to know exactly what you hope to get from the loan. Many people will want different things from their home loans and as a result there are many different home loans available. If you would like to know more about home loan types then please contact us.
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- Home Loans Types available in Australia
- Buying Your Next Home with a NAB Home Loan
- First Home Buyers Loan Australia – Loans, Special Offers & Comparison
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- ANZ Five Year Fixed Loan
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher​ | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 6.13% | 6.47% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 UBank UHomeLoan (Variable Rate) | One of the market leading variable interest rates. The maximum loan amount needs to be 80% of the property value. | 6.14% | 6.14% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded the 2011 Non bank Lender of the Year this feature-packed loan rewards customers with a bonus rate drop of 0.20% after 5 years. | 6.22% | 6.45% | $0 / $345 | 95% | $150,000 / $2,500,000 |
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