By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
NepaliPage | Nepalese Community Affairs in AustraliaNepaliPage | Nepalese Community Affairs in Australia
  • Home
  • Who is Who
  • News
  • Events
  • Jobs
  • Students
  • Photos
  • Videos
  • Nepali NAATI CCL
Font ResizerAa
NepaliPage | Nepalese Community Affairs in AustraliaNepaliPage | Nepalese Community Affairs in Australia
Font ResizerAa
  • Home
  • Who is Who
  • News
  • Events
  • Jobs
  • Students
  • Photos
  • Videos
  • Nepali NAATI CCL
Real Estate

Different Types of Home Loans in Australia Explained

Sugandh Ratan Agarwal
Last updated: May 31, 2020 8:15 am
Sugandh Ratan Agarwal
Share
3 Min Read
SHARE

Selecting the right type of home loan is as important as the home you are choosing for yourself. Since there are so many options available with a person it is easy to get confused. There are loans available for all your needs and various variations can also be done based upon one’s requirements. But broadly, there are five types of loans that are available. Take a look at them below:

  • Variable Rate Home Loan

This is the most common type of loan available in which the rates fluctuate based on the interest rate fluctuations. This means that if the interest rate goes down your loan rate also goes down. Thus you can save in the scenario. These loans provide the flexibility of payment as well so that you pay more amount when the rates are lower. [ads2]

  • Fixed-rate Home Loan

Contrary to the variable rate loans, these freeze the interest rate over a period of time. Generally loan takers fix the rates for the initial period only so as to avoid any rates fluctuation. The challenge here is to when pick an interest rate so that it has chances of not going down in the future and thus saving you from potential losses.

  • Split Rate Home Loan

This is a hybrid loan that allows you to fix a portion of your loan amount for a fixed rate and rest on a variable rate. The split can be 50-50, 60-40, and so on. This is generally taken by large amount borrowers who fear that choosing either of fixed-rate loan or variable rate loans will cause loss to them.

Read Also: Getting your finances together before buying home

  • Interest-Only Home Loan

A loan repayment consists of two parts, principal and interest. Some people prefer starting early repayment for preventing the amount from piling up. Here comes the interest-only loan. Some of the thinking behind interest-only loans is that investors can pay the minimum off their loan while waiting for the property to increase in value, and can then sell it to cover the original loan amount and bank a profit. Thus the loan taker has to pay interest only on the loan.

  • Low Document Home Loan

This is a great option for those who don’t have a regular source of income. Business owners, freelancers often face this problem while taking a loan that their income source is not reliable.  Low document loans require fewer documents and statements but charge a higher interest rate.

 

TAGGED:buying houseFeaturedFixed-rate Home Loanhome loansHome Loans in Australia ExplainedInterest-Only Home LoanLoansLow Document Home LoanSplit Rate Home LoanVariable Rate Home Loan
Share This Article
Facebook Twitter Copy Link Print
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
By Sugandh Ratan Agarwal
Follow:
A fun loving gal set in her own ways. Embarking on a journey to make a name. Write such that someone else can write about you! Cheers!
Previous Article Here's Why Sydney Should Be Your Study Destination - NepaliPage Assessing Your Overseas Qualification In Australia
Next Article Are you the Employee an Employer is looking for in Australia? Find out
Leave a comment

Migration News

2025 NSW Skilled Migration Seminars - NepaliPage
Want Australian PR? Join These NSW Migration Seminars
Migration
Temporary Graduate 485 visa - NepaliPage
Australia Closes Student Visa Pathway for Temporary Graduate Visa Holders
Migration
Migration boost is bad news for Australia’s environment – we mustn’t ignore that - NepaliPage
Australia’s skilled migration policy changed how and where migrants settle
Australia Migration News
How to improve the migration system for the good of temporary migrants – and Australia - NepaliPage
Government to toughen scrutiny of international students as it slashes net migration over two years
Migration News
- Advertisement -

You Might Also Like

Sydney Arieal View
Lifestyle

Top 10 Places to Visit in Australia in 2025

January 26, 2025
Two Nepalese lost life in Sydney water - NepaliPage
AustraliaNews

Two Nepalese lost life in Sydney water

June 9, 2024
CorporateJobs

10 Top In-Demand Jobs in Australia

April 15, 2025
Australia Budget 2025
Opinion

Budget 2024-2025: Shifting Migration Landscape and Its Implications for Nepalese Visa Seekers

June 9, 2024

We acknowledge the Traditional Custodians & First Peoples of Australia (all states & territories) past, present and emerging, and honour their continued connection to the history, country, and culture.

Follow Us on Socials

Twitter Update

Tweets by NepaliPage

About Us

NepaliPage.com (नेपालीपेज डटकम) is an Australian Nepalese Community Media platform connects large number of Nepalese Australians through common interest news, views and reviews. As an Australian Community Media NepaliPage aggregates News, Australian Nepali Community Affairs from all around Australia in both Nepali and English language. Read More...

Follow Us on Facebook

Copyright © All Rights Reserved

Affiliate Disclosure | Terms of Use | Privacy Policy | Community Journalism Policy |
adbanner
AdBlock Detected
Our site is an advertising supported site. Please whitelist to support our site.
Okay, I'll Whitelist
Welcome Back!

Sign in to your account

Lost your password?