UNDERSTANDING the different types of home loans

There are different types of home loans designed for different types of borrowers.

Read our easy to understand definitions and then contact a Tradies Finance loan planner to find out if you are no doc, low doc or full doc.

Full doc – standard variable and fixed rate home loans

The most common form of home loans, full doc loans require full income declaration and regularly scheduled principal and interest or interest only repayments on a fixed or variable rate. With these types of loan you are able to borrow up to 100% of the purchase price of a property.

Lo doc and No doc loans

Lo doc and no doc loans were originally designed for self-employed borrowers who weren’t able to disclose or verify their income. They are now becoming more popular and common with many different types of borrowers.

Lo doc and no doc type loans are available as fully featured term loans or lines of credit but may be at a higher rate than standard home loans.

No deposit loans

Rising costs of living, food and fuel prices, the demands of every day life - all up, getting a deposit together is becoming more and more challenging.

For many Australians, particularly those who can service a loan but maybe not save a deposit, no deposit loans are a fantastic way to get out of the rent cycle and into your own property.

100% Offset loans

100% offset loans may help you to decrease the amount of interest you pay on your home loan. They work by a structure of depositing your salary straight into an offset account. The benefit is that you immediately reduce the amount of interest you are paying.

MultiFlex Home Loans

 Pay off your home loan faster and save on interest. One of the only fully featured fixed rate loans with 100% offset available today. Make sure you check out the MultiFlex Home Loan.

Honeymoon rates

As the name suggests, honeymoon rates are designed to offer an attractive rate for the beginning period of a loan. They can be up to 1% point lower than mainstream home loan rates. This might help if you need that extra bit of assistance to get started but are confident you will be able to manage joining the mainstream rates within a set time period (usually between six and twelve months but some lenders offer honeymoon rates for up to five years).

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