Mortgage Jet’s Mortgage Blog

If you are in the market for a home loan in Australia, then you need to do your research and become familiar with the different types of home loans that are available to you. This article will attempt to give you the basic of the types of home loans that you can choose from when searching for a home loan in Australia.

The first type of home loan is the basic home loan. This is a variable loan rate with no “extras.” Your monthly payment is based on the interest rates. If interest rates fall, so will your payment amount. The good thing about this type of loan is that you can choose to pay the higher monthly payment when the interest rates fall and pay off your loan faster. Just make sure that you can afford to pay a higher monthly payment if the interest rates rise. You also need to make sure that this type of loan has no penalty for additional repayments or for paying the loan off early.

The next type of home loans in Australia is the standard variable rate loan. This is much like the basic home loan but with a few more options. If you choose a standard variable rate loan your payments will go up and down according to the interest rates. But there are no penalties for extra payments and you can split between fixed and variable rates.