Loans
Home Loan Types
Standard Variable Rate Loans
A standard variable rate loan means the rate can go up or down over the term of the loan. Generally these loans come with redraw, ability to make extra repayments and a greater flexibility at no additional costs, but the interest rate is usually higher than on a basic loan.
Basic Variable Rate Loan
As the name suggests this is a basic loan, and often comes with additional features that can incur a pay for use cost. As with a standard variable rate, the rate may go up or down over the term of the loan.
Discount variable / Honeymoon / Introductory Rate Loans
These loans are usually fixed for a year or six months and then often revert to a standard variable rate. You can sometimes switch to a lower rate after the discount period has finished for a fee. |
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Fixed Rate Loans
Your interest rate is fixed for a specific term (usually from 1 to 10 years). With a fixed rate you know what your repayments will be for that term, but you are often limited in your ability to make extra repayments. If you want to break the fixed rate you will probably incur early break costs.
Combination / Split Loans
Some lenders allow you to fix some of your loan and have some variable. This gives you the flexibility of a variable rate loan, and the security of a fixed rate. |
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Lines of Credit / Equity loans
These loans allow you to take advantage of any equity you have in your home by setting a loan limit and giving you access to the funds for whatever you want them for. Most lenders require an interest only repayment based on the outstanding balance.
Low Doc / No Doc Loans
These loans allow you to declare your income rather than providing financial statements and tax returns. They are usually for self employed people, and can take some of the complexity out of the application process. These loans sometimes attract a higher rate.
Reverse Mortgage
A facility aimed predominantly at retired people to provide either an ongoing income or a lump sum. The loan is taken against equity in the home, and usually no repayments are required, but interest will capitalize on the loan.
Business and Commercial Loans
Affinity is able to organize business and commercial finance including equipment leases and business cash flow – please contact us to discuss your needs contactus@affinitymortgagecentre.com.au
Construction Loan
A construction loan is different from a normal home loan because it can be drawn in stages rather than a lump sum at settlement. These stages are in line with the stages of construction. The loan is normally at a variable rate during construction, and you normally make interest payments on the amount drawn down only.
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Non Conforming Loans
Loans for people with a poor credit rating, short term employment, or other situations that do not fit a standard lending criteria.
No Deposit Loans / Family Equity Loans
You can borrow up to 106% of the purchase price of a home. These loans cover some of the fees and charges that you incur when buying a home. You can do it either all on your own, or by using the equity in a family member’s home to get into your own home sooner.
Professional Packages
These loans usually offer a discount on the Standard Variable Rate and extra benefits such as credit cards and other bank services inclusive in an annual fee. They are normally available on loans above $250,000. |
With so many options available, talk to Affinity. We use our expertise and experience to match you to a loan that suits your needs. Let Affinity do your loan shopping for you and take the hassle out of your home loan.
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