Basic Variable Home Loans have less features compared to that of a standard variable loan, such as an offset account. However, the good news is that many basic loans these days come with redraw facilities (a redraw facility allows you to draw down on additional repayments made on your loan at any time). Basic Variable Home Loans often have lower interest rates & less fees. They are also known as a "No frills loan".

Honeymoon Rate Home Loan offers a discount introductory mortgage rate which after a time reverts to a variable home loan rate. Honeymoon rate home loans generally incur costs such as large exit fees if you decide to refinance in the first few years of the loan. We recommend not to take this option if you are planning to sell or refinance within the exit fees applicable years. Usually within 4 years. Good for investment purpose as during the honeymoon period interest payable is less.

Fixed Rate Home loans allow you to fix your home loan rate for a certain number of years. By fixing your rate for example, 3 years, it means you are entering into an agreement with your lender that your interest rate will remain the same for the next three years regardless of increases or decreases in the current rate market. If you decide to break the fixed rate before the fixed period expires, break costs usually apply and can be quite substantial. The major reasons for breaking a fixed rate is usually due to a house for sale or refinancing for better rates.

Split Rate Home Loans allow you to have part of your home loan on a fixed rate and another part of your home loan on a variable rate. So if you are concerned about rate rises then maybe you need to consider this type of loan.

Line of Credit Loans (LOC) are variable rate loans. The Line of Credit is my favourite loan type, however the line of credit loan is not really suitable for everyone. Line of Credit home loans give you access to an agreed limit (say 80% of your property value as a guide). For example, if you get approved for $500,000 you can make as unlimited amounts of repayments as you wish and then you can also withdraw the balance right up to the limit again. This may not be suitable for someone who has a problem with large spending habits.

Low Doc Home Loans are loans that require little income documentation for the purpose of income verification. No tax returns or financial reports are required. These type of loans usually attract higher interest rates and most lenders will only lend up to 60% of your property value and will require Lenders Mortgage Insurance (LMI) for lending above 60% up to 80%.

Non Conforming Home Loans are loans for people who are having difficulty to source home loans from banks. This is generally due to prior poor credit rating history. Non conforming home loans attract higher interest rates.

1. "Stand Alone" No Deposit Home Loans allow you to borrow 100% of your property's purchase price. However, evidence of secure employment and the ability to repay the loan is required and a higher interest rate usually applies for the first few years. "Stand Alone" what this means is that the loan is secured by 1 property only. - THIS PRODUCT IS NO LONGER AVAILABLE IN THE MARKET. I will update you all once it is becomes available again. Which I hope it will be.

2. "Joint Security" No Deposit Home Loans that let you borrow 100% of your property's purchase price as long as you are willing to use another property as added security. The condition is, the LVR (Loan to Value Ratio) can not exceed the allowed LVR (which is 90% for bank's new customers or 95% for bank's existing customers who already have a mortgage product and have shown a satisfactory history of repayments). - THIS IS STILL AVAILABLE

3. "Security Guarantor" Another way for First Home Buyers to get a No Deposit Home Loan is by getting a "Security Guarantor". This can either be relatives or close friends that are not related. So the aggregate LVR between your new property's purchase value + the value of the property given by the security guarantor can not exceed the maximum LVR allowed eg 90%. However, if possible I would suggest to keep the LVR at 80% to avoid LMI.

The Australian Government has announced a First Home Owner Boost, which supplements the NSW Government funded First Home Owner Grant Scheme. Refer to First Home Owner Boost factsheet for information.

First Home Benefits Top 20 Postcodes