What are the different types of home loan?

There is a staggering array of different home loan products in the market. If your home loan doesn’t suit your needs, there is sure to be another product from a competing lender that will suit you.

The most common type of home loan is the Standard Variable loan with an interest rate that can rise and fall. A fixed rate home loan avoids that uncertainty by locking in a particular rate for a fixed length of time.

A discount variable home loan may have very few features (like offset or redraw) but have a very low interest rate.

A package loan may include a credit card, offset account, redraw and even other features like insurance or line of credit.

Source: Bankheadlines.com.au

Advertisement