Products at a glance
BASIC HOME LOANS
Pro - Interest rates are often half to one per cent below the standard variable rate.
Con - Limited features, less flexibility and possible penalty fees for early loan repayment.
LOW DOC HOME LOANS
Pro - Can help you enter the property market if you're a self-employed, contract or seasonal
worker without regular income or proof of income.
Con - Typically have higher interest rates; you may also have to pay LMI.
STANDARD VARIABLE-RATE HOME LOANS
Pro - Make regular repayments based on the current interest rate; effective if rates do not rise.
Con - Should interest rates increase your regular mortgage repayments will rise.
FIXED-RATE HOME LOANS
Pro - Fix your interest rate for a specific period, giving certainty to monthly repayment amounts.
Con - Should interest rates fallyou'll still need to repay your mortgage at the agreed fixed rate.
SPLIT-RATE HOME LOANS
Pro - Fix a portion of your interest rate to give certainty to monthly repayments while also benefit
from a variable-rate portion should rates drop.
Con - If interest rates do drop you'll be left paying a higher rate for your fixed-rate portion.
INTEREST-ONLY HOME LOANS
Pro - Pay only the interest component on your mortgage.
Con - Repayments do not reduce the principal component of your mortgage.
