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Home Loan Types

Are you confused about the sheer number of home loan types available? You’ve probably stumbled across way too much mortgage jargon which complicates what should be a simple decision!

By dealing with one of our mortgage brokers, all of this jargon can be simplified and we can compare and contrast the many different home loan products from our panel of lenders to find the right mortgage for you.

Our popular articles on home loan types

What home loan types are available?

Every lender has their own name for each of their home loans. There’s no need to be daunted though because in reality there are only a handful of different loan types.

Call 1300 889 743 or enquire online so one of our brokers can can tell you which loan best meets your needs.

Which one is right for me?

When selecting the type of loan to apply for, you should firstly work out what features you need and which you do not.

The more features your loan has, the higher the interest rate.

This is particularly true for low doc loans, fixed rate loans and line of credit loans (LOCs).

The main things you need to consider are:

  • Do I need to be able to make extra repayments?
  • Do I need to be able to redraw any extra repayments I have made?
  • Do I need easy access to my funds via an offset account or ATM access to my loan?
  • Can I prove my income?
  • Would I like the security of knowing exactly what my repayments are each month?
  • Would I like to be protected from interest rate fluctuations?
  • Is my loan large enough to negotiate a professional discount? (Generally $250,000+)

Find out more

Our mortgage brokers have sophisticated software and deep knowledge to help you choose the most suitable home loan.

Why waste your time researching online when you can call us on 1300 889 743 or enquire online and let us do the hard work for you!

  • Hudson

    I’m applying for a home loan with CBA in the coming month, however I am not sure whether I should fix the rate or not. Can someone explain whether it will be good for me or not.

  • Hi Hudson,

    It all depends entirely on your need for the cashflow and your other requirements. Usually fixed rate loans give you the security and certainty of knowing your each repayment amount, however you may be charged for making early repayments.

    Please refer our https://www.homeloanexperts.com.au/fixed-rate-loans/ to know more about fixed rate loans.

  • omega

    Will business loans be assessed like commercial property / investment loans or are there other methods?

  • Hey omega,
    With business loans, banks are generally less strict with their lending requirements. as they’re not regulated by the National Consumer Credit Protection (NCCP) act. However, to qualify, you’ll need a strong application and a strong business. Please check out the business loans page to find out more about this:
    https://www.homeloanexperts.com.au/business-loans/

  • Abe

    Do Citibank and AMP bank offer any offset account products?

  • Hi Abe,
    Citibank offer offset accounts with their mortgage plus package home loan and AMP offers professional & basic loans with offset accounts.

  • Me

    is it possible to buy a house overseas with a home loan, personal loan or equity from an existing loan with an Australian bank?

  • Yes this is possible however many Australian banks will not accept a loan for this purpose. We can help if you have a property in Australia that you’d like to refinance to release equity to invest overseas.

  • JLogsdon

    Hello, I am an electrical engineer and want to know if I can get a no LMI home loan. I have a $138,000 income, more if rental income can be added.

  • Hi JLogsdon
    Rental income can be considered but to qualify for a no LMI home loan, your income must exceed $150,000 per annum. This way, you can borrow up to 90% of the property value with waived LMI. If you can’t qualify for this then there are still some lenders that can offer LMI waivers for up to 85% of the property value and we can help you negotiate an interest rate discount with this too.

  • Graham

    Hi, I initially just wanted a basic home loan type but now am very much interested in getting a professional package with maybe an offset account so I can pay it off faster. The only thing that worries me is my living expenses. How do lenders calculate this? Can I get an estimate of what they’ll use when assessing?

  • Hey Graham,

    Most Australian banks use the Household Expenditure Measure (HEM) when assessing your borrowing power for a mortgage application. You can get an estimate for this yourself by using the living expenses calculator. However, do note that the result should be used as a general guide only, as your living expenses can vary significantly depending on how you choose to spend your money. Here’s the link to the calculator:
    https://www.homeloanexperts.com.au/mortgage-calculators/living-expenses-calculator/