Fixed Interest Loans - owner occupiers
Fixed interest-rate loans have an interest rate set for the term of the loan which is not affected by market fluctuations. Some loans are available with a fixed interest rate for an initial period of the loan, after which it reverts to the current variable interest rate, or is renegotiated at a new fixed rate.
Fixed Interest Loans – investors
A fixed interest investment loan is usually short term with repayment periods from 1 to 5 years and an interest rate fixed for the whole term. If required beyond the initial repayment period, the loan is usually renegotiated at the current fixed rate with additional establishment or “roll-over" costs.
Low Start Loans
A low-start loan has reduced repayments at the beginning to accommodate particular financial circumstances. The repayments are increased each year to a normal repayment level, ensuring the loan is paid within the specified repayment term.
High Start Loans
High-start loans commence with repayments which are set higher than normal home loan repayments. This option is designed primarily for people who can afford higher repayments in the earlier years of the loan. As financial circumstances change, the repayments are adjusted to normal repayment rates.
Interest Only Loans
An interest-only loan has repayments which only pay the interest charged on the loan. The principal does not have to be repaid until the end of the loan.
Line of Credit Loans
A line-of-credit loan operates the same as a bank overdraft facility. You draw as much as you need (up to your limit) and repay – usually interest only – at a predetermined rate. Interest is charged only on the funds you use.
Consolidated Loans
Several existing loans can be combined (or consolidated) into one loan. Existing loans are paid out and the total amount can be financed at owner-occupier rates.
Vacant Land Loans
Loans for the purchase of vacant land are available at normal home loan interest rates provided it is for owner-occupier use and you commence building on the land within a prescribed time.
Home Improvements Loans
Home improvement loans are specifically for extensions or renovation projects. They are usually available at normal home loan interest rates and can be added to existing home loans, or undertaken as separate loans.
Property Investment Loans
Property investment loans are tailored for property purchases which are not intended as owner-occupier. Some lenders charge a marginally higher interest rate in these circumstances.
Commercial Property Loans
Commercial property loans are specifically for commercial property as opposed to home or housing. Interest rates and equity requirements are usually determined by specific criteria and market conditions at the time.
