Home Loans Features

Basic and Standard Variable Home Loans

  • Interest rate of loan will rise or fall over the period of the loan (usually following official interest rate set by Reserve Bank of Australia)
  • Ability to make extra repayment without financial penalty
  • Basic generally offers a discounted rate, but has fewer loan features, such as 100% offset, redraw facility and repayment flexibility

Fixed Rate Home Loans

  • Interest rate is fixed for a predetermined period of time
  • Repayments remains the same regardless of changes in official interest rate
  • Ability to fix or switch to variable at the end of the fixed period
  • Restrictions on extra repayments
  • Financial penalties / break costs will be charged if loan is repaid before the end of the fixed period

Split Rate Loans

  • Ability to split the total loan amount into portions of fixed and variable
  • Usually the same flexibility applies to the variable portion only
  • Usually the same restrictions / financial penalties apply to the fixed portion only

Interest Only Loans

  • Monthly repayment exclude principle repayment
  • Mainly for managing cash flow
  • Popular for investors, or home owner looking to sell property in the near future

Line of Credit

  • Usually higher interest rate
  • Flexible and works like a credit card / overdraft facility
  • Popular with investors or home owners looking to finance purchase at home loan rates

Low-doc Home Loans

  • Popular with self-employed people, as these loans require less documentation or proof of income
  • Usually higher interest rate

Contact GC Finance Solutions for more information.