Choosing My Home Loans:

Basic Home Loan:

At a Glance: When you don’t need feature or flexibility (Bells and Whistles) but you do want low interest rate and fees.
Pros: Lower rate and fees
Cons: Cost involved to access features eg Offset,

Bridging Home Loans (or Home to Home Loans):

At a Glance: Use it to buy your next home while you are still selling your existing.
Pros: You don’t have to make the purchase of your new home conditional on the sale of your existing home. Standard variable rate. Many conditions apply
Cons: Can be confusing. Only standard variable rate. Big problems if you can’t sell your existing home. Only viable in a rising property market.

Construction Home Loan:

At a Glance: Use for construction of your residence or investment property.
Pros: Standard Variable rates. You get the design you want
Cons: Can be drawn out and confusing. Where do you live during construction

First Home Owner Grant (FHOG):

At a Glance: A government grant to people who are buying their first home if you meet their criteria. P.S. Purchase may be Stamp Duty free if it is below $500,000
Pros: $7000 gift if you qualify.
Cons: N/A

Keystart Government Assisted Home Loans:

At a Glance: To qualified applicants they may offer limited assistance to purchasers to help with deposit and stamp duty. Pros: Can help low income earners with small deposits Cons: Many conditions to be met. Limits to home purchase price.

Honeymoon Rate / Introductory Rate:

At a Glance: Cheaper interest rate for the 1st year. Used to attract new customers to a bank.
Pros: May save you some money for the first year.
Cons: May be more expensive overall, as it jumps to standard variable rate in year 2 and beyond.

Home Equity Loans / Line of Credit:

At a Glance: May be used as a flexible investment tool. May be used as part of a rapid mortgage reduction plan
Pros: When used properly can be very effective in reducing a mortgage term
Cons: When Not used properly can be ineffective at reducing debt.

Interest Only Loans:

At a Glance: Pegs the interest rate at a given percentage for anything between 1 and 10 years
Pros: You know exactly what your repayment will be for the fixed period.
Cons: Can be more expensive. Banks rarely lose with fixed interest

Low Doc Loans:

At a Glance: Ideal for small business who are not up to date with tax returns
Pros: No need to verify income with mountains of paper work.
Cons: Less feature and flexibility. Can be higher interest rate

No Deposit Home Loans / 100% loans:

At a Glance: Ideal for applicants who are short of deposit but have very strong income and credit rating. Mostly used in rising market.
Pros: Saves having to save a deposit. Ideal for people starting again.
Cons: Can take some time to gain equity. Watch for falling property markets

Professional Package Home Loans:

At a Glance: Offers a package of loan, transaction account and credit card. Used to attract high income earners.
Pros: Sometimes has reduced loan interest rate. Convenient.
Cons: Often has higher overall fees. Often works on ego more that logic

Standard Variable:

At a Glance: Usually offered with a suite of features at standard variable interest rates
Pros: Has flexibility to accommodate client changing needs. May be the most economical long term option.
Cons: N/A

Transportable Home Construction Loans:

At a Glance: Short term finance used for construction of Transportable homes
Pros: It is often the only finance available for applicants to build their transportable home.
Cons: Only for applicants with clean credit and long term employed are eligible.