Loan Types
There are hundreds of different loan products across the Australian mortgage market today, all with different features and benefits. Without the latest tools and industry knowledge, finding the right loan can be a nightmare. In addition, the wrong choice of lender could cost you thousands of dollars more over the life of the loan.
Express Mortgage Market is here to help you safely navigate this complex market for a better solution. Your local Express Mortgage Market Adviser will review your circumstances and objectives and, using our powerful software, develop a shortlist of lenders that could best meet your individual needs.
You’ll find a summary of the main loan types below to get you started, but nothing beats a chat with your local Express Mortgage Market mortgage adviser. Request an obligation-free appointment today.
Standard Variable Rate
This is often known as the ‘benchmark rate’ and will traditionally move up and down with the Reserve Bank interest rate adjustments. It is a ‘full feature’ loan that allows for maximum flexibility including additional repayments, redraw and loan splitting.
Basic Variable Rate
Often referred to as a ‘no frills’ loan, the basic loans provide a cheaper variable option for borrowers who don’t require many special features.
Fixed Rate Loans
This is where you ‘lock in’ your rate for a defined period so that you avoid possible future interest rate rises. Although you have the security of knowing your monthly repayments will not increase, you do not enjoy interest rate reductions that occur during your fixed period.
Combination or split rate
Who says you can’t have the best of both worlds? Many institutions allow you to split your loan so that you can have some on fixed interest on some and variable.
Low Doc
Low Documentation loans, more commonly known as ‘Lo Doc’, are designed for self employed people who may struggle to obtain all the normal documentation required to verify income. Because these loans have less stringent approval criteria, they typically attract a slightly higher interest rate.
Non-conforming
Do you have a bad credit history? Many ‘non-conforming’ lenders will often help where the banks won’t, although the rate of interest charged is usually higher.
Home Equity
Also know as ‘lines of credit’, these are interest-only loans with a set ‘limit’ available for drawdown at the borrower’s discretion. Perfect for minor home renovations or share investment.
Offset
An Offset loan is where a every day transaction account is linked to the loan account. Any funds held in the transaction account are automatically offset against the loan balance, thereby saving interest. The more in your account, the greater the saving.