Basic Variable Home Loan
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Low interest rate (lower than standard variable rate)
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Rate is variable so it moves in line with Reserve Bank changes
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Limited features
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No off-set facility
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Chargeable manual redraws
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Extra payments allowed
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Loan terms: 25 or 30 years
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Fees:
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No annual fees
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No monthly fees
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Professional Package (Discounted Standard Variable)
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Permanent discount on standard variable rate
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Rate is variable so it moves in line with Reserve Bank changes
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Full features:
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Off-set facility
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Free credit card and cheque book
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Extra payments and redraws allowed
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Loan terms: 25 or 30 years
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Fees:
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No application fee
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No redraw fee
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Low Doc Loan
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Suitable for self-employed customers whoch tax returns and financials
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Customers are to sign a Declaration of Income and/or Financial Positions, in lieu of providing full financial information
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Applicants may borrower up to 60% Loan to Value Rate without Lenders Mortgage Insurance. Some of the lenders offer a Low Doc products up to 80% LVR for eligible customers with Lenders Mortgage Insurance.
Introductory/Honeymoon Rate Home Loan
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Low interest rate is usually offered for the first 1 - 3 years of the loan. The rate may be fixed, variable or capped
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Once the honeymoon period is finished the interest rate usually reverts to the discounted standard variable rate
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The initial low rate offers a chance for you to reduce the principal quickly by making extra repayments
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Package features available
Fixed Rate Home Loan
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Interest rate and repayments are locked for up to 10 years
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Once the fixed rate period is finished the rate will usually revert to certain scheduled variable rate unless you decide to rollover to another fixed term
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Limited extra payment allowed
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Possible high break cost for early exit
Line of Credit
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A combinamtion of transaction account and loan account
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Allows you to directly credit your salary to the account
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You can draw down on the loan at any time up to the prearranged credit limit via ATM's, EFTPOS, credit card or cheque book as you need it
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A higher interest rate is usually paid
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Good for investment purposes
