Local Home Loans in Somerton VIC

Different types of home loans

When looking to select a home mortgage loan, there’s a sea of options available. Here’s a breakdown of the most common types of home loans available to borrowers.

• Variable rate loans: the go-to option for many homebuyers. Interest rates change depending on the Reserve Bank’s cash rate. Many variable loan products have a redraw facility, offset account and extra repayments facility.
• Fixed rate loans: this type of loan locks in your interest rate for a set period at a rate above the current variable rate. Borrowers who worry about affordability may prefer having a set rate.
• Interest only loans: popular with property investors, it allows you to own your own abode without much in your piggy bank.
• Low deposit home loans: with some extra interest and costs, homebuyers can access the real estate market with lower savings.

Before selecting your home loan, don’t forget to seek professional advice from an independent mortgage broker or financial advisor. Why not have a look through our online directory for easy home loans near you.