This is the most popular type of home loan. The interest rate can move up and down when the Reserve Bank of Australia makes adjustments to the official interest rate, changing your repayment amount.
The interest rate is fixed for a period of time. Depending on the lender, this can be 6 months (as an introductory rate) or as long as 10 years. Repaying the loan in full (e.g. refinancing or selling the property) can have expensive breaking fees depending how long is left of the original loan term. Also some lenders limit the amount of extra repayments into the fixed loan. However, a fixed rate can be great for budgeting.
These are accounts where the balance is offset, or in otherwords calculated, off your home loan balance, so that your daily interest charged on the mortgage is lower. Not offered by all lenders and some charge a premium for the service. A great mortgage reduction tool if used well.
These are home loans, usually targeted a First Home Buyers, who don't have a deposit and can borrow the purchase price of a new home. Mortgage insurance fees will need to be paid and some lenders charge a higher interest rate for this type of loan. If you are not a First Home Buyer, stamp duties will also need to be paid.
A Line Of Credit is a fully transactional account seperate or joined to your mortgage that allows you access to surplus funds. ATM and EFTPOS fees may apply depending on the lender. Some lenders charge a premium for this type of loan.
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