The best mortgages

When choosing the most fitting mortgage for you remember that each loan is targeted at a different profile, so there is no black and white advice as to what is a ‘good’ or ‘bad’ home loan. Therefore it is important that you shop around to find a loan that is ‘good’ for you.

Common home loan types

• Basic home loan. Generally good interest rates. They are similar to standard variable home loans but tend to have less features
• Fixed rate home loan. The interest rate will be fixed for the agreed term, usually from 1 to 3 years
• Variable rate home loan. Most common loan type in Australia due to its flexibility and features
• Low-Doc Home Loan. Suitable for people who are self-employed and can’t provide the usual amount of paperwork required to show a regular income stream
• Interest only home loan. Can be used for owners living in the property but is more suitable for investment property. Borrower only has to pay the interest on the balance. For more information see our article on interest only home loans
• No Deposit Home Loan. Applicant borrows the full purchasing price of a property without any initial deposit. The loan-to-value ratio is 100%.