These days there are a number of different home loan types available, so you can choose the one that’s best suited to your lifestyle.
Fixed rate home loans
You may pay the same interest rate for a certain number of years (usually 1-5). Even if the Reserve Bank increases the official interest rate and your lender passes on the increase to variable loan customers, your rate remains the same.
Variable rate home loans
The interest rate goes up and down, based on the Reserve Bank’s official interest rate and your lender’s pricing.
Interest only home loans
You pay only the interest on the loan amount for a period of time, making your repayments lower than a standard home loan. At the end of this period, it goes back to being a standard home loan, and you will begin making repayments on the full loan amount plus interest.
Low-doc home loans
With a low doc home loan, you don’t have to show all the financial documents (tax returns, financial reports, etc.) normally required to get a loan. This may be the best option for you if you’re self-employed.
Construction home loans
Construction loans make up around 8% of the home loan market – but at Resolve Finance over 80% of the home loans we write are construction finance, making us experts in the field.
Designed for people who are building a new home, a construction loan may be an interest only loan that’s originally based on the value of the land, and increases in stages as your home gets built. It usually converts to principle and interest on completion.
Guarantor home loans
Instead of paying a deposit on your loan, your parents put up their property as security. This can significantly reduce the deposit required as well as the amount of mortgage insurance you’ll have to pay.
These are just a sample of the many loan types available in the market today. With so many options, it makes sense to speak to a Resolve Finance broker, who will assist you in finding the right loan for you.