Financial services

A variable rate loan is great for home buyers who wish to keep interest rate costs to a minimum and are happy to take a gamble on the direction that interest rates will take in the future.

A fixed rate loan is best for those who want security in knowing their exact repayment each month. With a fixed rate home loan you can generally fix your interest rate for anywhere between 1 to 7 years with 10 to 15 years also being an option with some lenders.

An introductory rate home loan (sometimes called a “Honeymoon Rate”) is mostly aimed at first home buyers offering a low rate for an initial period of anywhere from 6 months up to 3 years.

Most major lenders now offer "professional packages" for home loans above $250,000 (for one loan of more than $250,000 or a total aggregate lend of $250,000). Professional packages were originally set up for certain professions or income brackets but are now available to anyone provided they pay the package fee.

A line of credit or equity loan is somewhat similar to a credit card. A lender will lend up to 80% of the value of the security. This type of loan does not have a set term nor fixed repayments.

An offset account is usually a savings account linked to your mortgage. This type of finance solution allows you the benefit of offsetting funds in your savings account against your home loan, thereby reducing the interest payable on your home loan.

A family guarantee, family pledge or guarantor loan allows your family members (generally a parent, grandparent or in-law) to use the equity in their home as security for a portion of your home loan amount.