Types Of Loans

With so many different lenders and loan products in the marketplace today, making a decision on the loan that best suits your individual needs can be a challenging task.

Listed below is an explanation of the various loan types that may help in your endeavor.

Basic Variable Rate Loans
Basic variable rate loans are extremely popular due to their low interest rates. The trade-off with these types of products is that they are limited on features.

Standard Variable Rate Loans
Standard variable rate loans are known for their flexibility and features. Partly fixing, loan splits, offset, additional repayments and redraw are usually standard with this type of product. The standard variable rate loans are usually in packages with an annual fee which includes all banking fees and credit card fees.

Fixed Rate Loans
Fixed rate loans protect borrowers against interest rate rises for a given period of time although work against borrowers when rates fall. Fixed rate loans are popular amongst investors and home owners that require a level of security when forward planning their repayments.

Line of Credit
This account allows you to turn the equity in your property into a ready source of funds up to an agreed limit. You can use these funds for any personal purpose and any principal repaid is available to be redrawn. A line of credit home loan is a credit facility secured with a first mortgage on a residential property. Similar to a credit card, they allow you to withdraw funds up to a set limit at any time.