Home Loan Types in Australia

There are hundreds of different home loans on the market, all with different interest rates, fees and features. If you haven't already decided, the following information might help you choose the type of home loan that's best suited to your situation. Australian Home loans are generally categorized under:  

Australian Home Loan Types  

Ø Standard Variable Rate  

Ø Basic Variable Rate  

Ø Fixed Rate  

Ø Combination or Split Rate  

Ø Low documentation Loans  

Ø Home Equity Loans  

Ø Line of Credit  

Ø All-In-One Loans  

Each mortgage lender on the CPA Homeloans panel has slightly different terms and requirements. Request an obligation free home loan appointment and your Home Loan Consultant will explain the differences and how each home loan could suit your individual needs.  

Standard Variable Rate  

Standard Variable Rate loans typically offer you maximum flexibility and great features, including the option to fix or split your home loan, the ability to make additional repayments when you can afford to, and the option to redraw these funds for any purpose when you need to.  

Basic Variable Rate  

Basic Variable Rate loans offer a lower interest rate, but fewer features. However, you usually have the option to pay for additional flexibility and features when you need them.  

Fixed Rate  

Fixed Rate loans protect you against interest rate changes for an agreed time, so you have peace of mind knowing your repayments won't increase. However, you won't benefit if rates go down during the fixed term of the home loan.  

Combination or Split Rate  

Combination or Split Rate loans combine the flexibility of a variable rate and the certainty of a fixed rate, so you benefit when interest rates drop, and are protected when they increase.  

Low documentation Loans  

Low documentation Loans have been designed especially to help borrowers who do not meet 'standard' lending criteria, including those who have an impaired credit history and unable to provide the required financial documentation in support of their loan application.  

Home Equity Loans  

Home Equity Loans allow you to unlock the equity in your existing property for other opportunities such as renovating your home, investing in shares or managed funds, or financing an investment property.  

Line of Credit  

Line of Credit loans are interest only variable rate loans that allow you to borrow against the equity in a home with the added flexibility of a transaction account built into the home loan.  

All-In-One Loans  

All-In-One Loans feature an everyday transaction account linked to your home loan. By keeping all your money in your loan account, and only redrawing your living expenses as you need to, you can reduce the amount you owe. This, in turn, reduces the amount of interest you have to repay, making your money work much more effective for you.  

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