| Home Loan Types | |
| Bridging Home Loans | A type of short-term loan typically used when in the process of selling one property and purchasing the next or when waiting for the arrangement of longer term finance. |
| Construction Home Loan | This loan is used to build a new home or property and generally involves draw down payments where you receive the funds in instalments after a body of construction work is complete. |
| Fixed Rate Home Loans | A fixed interest rate home loan is taken out for an agreed period of time between 1 and 10 years and when this ends you have the choice of fixing the rate again or switching to a variable interest rate. Your repayments will remain constant during the fixed term, regardless of any interest rate changes. |
| Interest Only | Interest only means that no principal repayments are required. You only pay the interest portion for a period of up to 10 years. After this time the home loan will revert to a principal and interest loan allowing the home loan to be paid in full. |
| Land Only Home Loan | A home loan to purchase a block of land that does not have a dwelling on it. |
| Split Home Loans | A Split loan allows you to have a portion of your home loan with a fixed interest rate and the remaining portion with a variable interest rate. You have the option of selecting the percentage you would like fixed and variable, as long as the minimum fixed amount is covered, as per the individual home loan requirements. |
| Principal & Interest (P&I) Home Loan | This type of loan requires you to make set repayments each month of both principal and interest. The principal is the amount borrowed or remaining unpaid. The interest is the fee charged for borrowing the money. |
| Variable Rate Home Loans | This home loan is subject to changes in interest rates and the amount of your home loan repayment. If the interest rate rises or declines your repayment will follow. |
| Home Loan Features | |
| 3rd Party Direct Debits | You can pass your loan acount number & BSB to another financial institution to take money periodically from your home loan account. |
| Application Fees (no) | Free Home Loan Application (fees waived) |
| Australia Post Deposit | Ability to make mortgage repayments at Australia Post. |
| Bpay In | Ability to make mortgage repayments from your existing bank account (that has Bpay set up) using Bpay. |
| Bpay Out | Ability to make payments from your mortgage account to another financial institution using Bpay. |
| Break Fees (low) | This fee applies to fixed rate home loans that are terminated prior to the completion of the fixed period. |
| Capitalise Your Upfront Mortgage Fees | Allows you to add your upfront purchasing costs to your home loan amount to be paid off over the term of the loan. |
| Capitalising of Interest | The ability to skip one or more repayments if you have enough redraw funds available for the interest to be deducted from. |
| Capitalising of LMI | The ability for the Lenders Mortgage Insurance (LMI) premium to be added on top of the loan. This saves paying for the premium upfront. |
| Cash Card | A cash card if included on this loan. |
| Cheque Book | Facility to have a cheque book linked to your home loan account. |
| Company as Borrower / Gaurantor | Ability to have the mortgage written in the name of a Business or to have the business act as Gaurantor on the mortgage. |
| Credit Card | Option of having a credit card linked to your home loan account. |
| Debit Card | An electronic card issued by a Financial Institution which allows you to access their account to withdraw cash or pay for goods and services. |
| Deferred Establishment Fees (DEF) | This fee applies to loans that are paid out early, normally within the first 5 years, or refinances with another lender. |
| Deposit (no or minimal) | Loans that require 10% or less of the purchase price to be saved and the remaining balance is borrowed from a mortgage lender. |
| Deposit Book | Facility to have a deposit book linked to your home loan account. |
| Direct Credits | The ability for an external party to pay directly into a borrower’s loan account. |
| Direct Debit | Allows youto have your mortage repayment automatically drawn down from a nominated bank account. |
| Exit Costs (low) | Fees associated with ending the loan contract prior to full loan term. |
| Extra Repayments | Allows you to pay an amount in excess of the minimum loan repayment amount in order to save interest and repay the loan earlier. |
| Family Pledge | Allows you to borrow 100% of the purchase price plus an additional 10% to cover the purchasing costs, provided you have an immediate family member willing to offer security support. |
| Genuine Savings (loan doesn’t require) | A loan that does Not require you to have genuine savings (ie savings that have been in an account for a minimum of 3 months and is not a loan or required to be paid back). |
| Home loan Portability | Allows you to take your home loan with you if you move house, keeping your same BSB and account details. |
| Internet access to your loan account | Internet access provides you with 24/7 access to your loan account, including statements. |
| Introductory Rate Home Loans | Also known as a Honeymoon Rate, it has a short period, normally 6 months, where the variable interest rate is reduced. At the end of the period the rate reverts back to the standard variable rate for the remainder of the home loan term. |
| Lender’s Mortgage Insurance (LMI) | An insurance to protect the Lender against the home buyer defaulting on their repayments. Normally applies to home buyers borrowing more than 80% of the value of the property. |
| Line of Credit Home Loans | A Line of Credit home loan allows you to borrow money up to a specified limit. The funds will be made available to you and you access them as required. A line of credit, generally arranged before the funds are actually required, provides flexibility for the customer in that it ensures the ability to meet short-term cash needs as they arise. |
| Loan to Value Ratio (LVR) | The ratio of the amount lent, to the valuation of the property. |
| Mortgage Insurance not Required | Lender’s Mortgage Insurance is not required to be paid on this loan product. This could save thousands on the set up of a loan. |
| Low Doc Home Loans | A type of home loan suitable for the self employed or people who are unable to provide full financial statements and other evidence of income. |
| Offset Facility | Allows you to use the money in a linked savings account to offset the amount of interest you pay on your home loan. |
| Phone Access | Access via the phone to administer your home loan. |
| No Annual or ongoing fees | No ongoing account keeping fees (weekly,monthly or yearly) |
| Non-Conforming | A non-conforming loan is loan that fails to meet normal lending criteria from a bank and is normally an option for people with an impaired credit history. |
| Offset Account | Allows you to use the money in a linked savings account to offset the amount of interest you pay on your home loan. |
| Redraw Facilities | The ability to make extra repayments on your home loan which are you able to access and withdraw at a later date for personal use. |
| Repayment Frequency (w,f,m) | Ability to choose to repay your home loan weekly, fortnightly or monthly. |
| Repayment Holiday | Allows you to temporarily stop making home loan repayments for a given period of time as long as your account remains in credit. |
| Repayment Sweep of Credit Card | Allows your home loan to automatically clear your credit card linked to this loan back to zero each month. |
| Salary Credit | Have all or part of your income paid directly into your loan account. |
| Telegraphic Transfer | Allows you to transfer money from your home loan account to another account on the same day. |
| Trustee as Borrower / Guarantor | Ability to have the mortgage written in the name of a Trustee or to have the Trustee act as Gaurantor on the mortgage. |
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