RESIDENTIAL FINANCE

VARIABLE RATE

Standard variable home loans are one of the most popular rates in Australia. As the name suggests, a variable rate can fluctuate with the rise and fall of interest rates depending on the official cash rate set by the Reserve Bank of Australia.

Other contributing factors include funding costs and the individual decisions of each lender.​

FIXED RATE

Fixed Rate:
A fixed rate loan locks in the interest rate usually for the first 1-5yrs of the loan. The rate will not change regardless of how much interest rates change during the fixed period. A fixed rate can give you security knowing your repayments will be the same for the length of the fixed period. At the end of the fixed period you have the option of fixing the rate in again at the current lenders offer, change to variable or refinance to another lender if the offered rate is not competitive.

PROFESSIONAL PACKAGE

A professional package home loan was originally introduced by a number of banks to reward low risk, high profit customers such as Doctors, Lawyers and Accountants.

Banks will have certain levels of requirements to qualify for their pro packages regarding income, length of time of employment, the type of profession and loan amount.

Overall a professional package are great if you are looking to borrow a larger sum of money as the more money borrowed the more discount on rates the banks are likely to give. Annual package fees may incur which can offset the benefits of borrowing smaller amounts, so it’s wise to speak with a broker to find out if this option suits you.

BASIC

A basic home loan is a home loan which is light on features but offers a lower interest rate and mortgage fees. This type of home loan is useful for borrowers who want to lower their periodic repayments and ongoing costs.