You may find a range of loan products in the market designed to meet your unique needs & objectives. Here are some of our most popular options.

Standard Variable Rate Loan is one of the most sought-after products in the market, mainly due to the high flexibility it offers. The rate of this product is variable and is aligned with the economy of the country, which in turn has a direct relationship to the Cash Rate of the Reserve Bank of Australia. Many Lenders consider Standard Variable Loan Rate as the base for determination of interest of other loan products.

  • Offers additional repayments without penalty.
  • Can be linked with off-set accounts which facilitate faster repayment of the loan.
  • Option of redraw to withdraw excess repayments already made for any purpose, facilitating access to cash in case of need.
  • Allows loans for a longer period, usually up to 30 years.
  • Rate moves up or down with the market. Though there had been a direct link to the cash rate of Reserve Bank in the past, Banks have been making changes to the rate without aligning 100% to the cash rate for some time now.
  • There is a risk of increased monthly repayments in a scenario of higher interest rate as well enjoying the lower repayments when rates are low.
  • Rate is usually higher compared with other standard loan products. However, Lenders offer discounts to Borrowers if they subscribe to Professional Packages.

Basic Variable Rate Loan is more similar to Standard Variable Rate Loan with the exception that it offers a comparatively lower rate of interest and less features. This loan type is also called “No frills” Loan due to its limited features.

  • Rate of interest is lower than Standard Variable Rate Loan.
  • Less features, usually no off-set facility, However, additional repayments and/or redraw allowed.

Fixed Rate Loans offer a fixed rate of interest for a given period of time and reverts back to a variable rate loan at the expiry of the fixed term. However, the Borrower has the option to choose another Fixed Rate Loan at the rates applicable at that time. Majority of Lenders offer Fixed interest periods from 1 year to 5 years.

Changes in fixed rates are not always related to the changes in variable rate in the market. Variable rates are somewhat linked to the cash rate of the Reserve Bank whereas fixed rates are determined by the demand and supply factors in the market.

  • Protects against risk of increasing repayments due to rise in interest rates, for an agreed period of time.
  • Provides certainty of amount of repayment duration the fixed term, thus making budgeting easy.
  • Some Lenders offer partial off-set facilities.
  • Additional repayments can be made up to a limited amount per annum depending on the Lender. Any additional payments above such a limit attract fees and penalties.
  • In the event of settling the loan in full before the end of fixed rate term, penalties are payable. The amount of the penalty (also known as “break cost”) may depend on the contracted rate, prevailing market rate and several other factors.
  • Reduced flexibility as repayments will be fixed even if there is a reduction in market interest rates.

Construction Loan is designed to finance the building of a home, facilitating the Borrower to meet the obligations under the standard building contracts. Unlike the other type of loans, constructions loans are drawn in stages, usually to make payments to the Builder in 5 different stages in line with the progress payment schedule of the Building Contract.

Construction Loan is predominantly a Variable Rate Loan product though there are a few lenders those who offer fixed rates.

  • Drawn in stages usually to pay the Builder directly, after verification of work completed per the Building Contract.
  • Borrower need to pay only the interest on the amount of the loan drawn until the loan is fully drawn.
  • Drawdown fess are payable to most of the Lenders.
  • All the features of the Variable Loan may not be available while the loan is not fully drawn.

Line of Credit operates in a similar way to a Credit Card or Overdraft account. Lender set-up a LOC limit for the customer within which the customer can operate. Funds can be withdrawn and deposited within in this limit according to the requirements of the Borrower.

  • It is one of the most flexible accounts which do not have any fixed repayment terms, as far as the balance is within the approved limit.
  • Interest calculated on the drawn balance is debited to the account, usually on monthly basis.
  • Requires high level of financial discipline to manage this type of an account, as it does not have fixed repayments. However, subject to proper management of finances, the product provides a lot of flexibility.
  • More appropriate to Borrowers who experience fluctuations in their cash flow.
  • Usually the limit is restricted to 80% of the value of the security.
  • Rates are generally higher than standard home loan products, but lower than Personal Loans or Credit Cards.

Bridging Loans are intended to bridge the gap between the purchasing of a new property and selling of an existing property. Both tasks cannot be achieved together in a convenient way, unless there is simultaneous settlement, or a Lender is prepared to carry the total debt during a short period of time.

  • Most of the Lenders calculate serviceability on total debt negating its purpose, though desirability is to calculate on the end debt.
  • Repayments during the bridging period is on interest only basis. Hence, higher rates may apply without the benefit of special pricing.
  • There are conditions to sell the property within a given period, usually 12 months. If not sold, based on the policy of the bank either the lender may grant an extension or sell the property to reduce the debt.
  • There are variations in policies among the lenders. Hence, it is necessary to understand the operation of the loan and the risks involved before proceeding.