Introductory

• Introductory loans can be capped or fixed. Fixed is more common.
• If capped they can go down but not up during the period. Fixed stay the same.
• A low introductory interest rate (usually 12 months) after which most revert to the variable rate.
• Lifestyle: First home buyers and anyone concerned about cashflow during the first year of a loan in which there are usually more expenses.  Remember to take into account the variable amount to which it will revert at the end of the year.
• Exit costs: rarely charged

• Australia's most popular type of home loan.
• The interest rate generally moves in line with wholesale interest rate markets.  Repayments will decrease if interest rates drop and increase if interest rates go up.
• In this category we have combined Basic Variable and Standard Variable. The main difference is Basic Variable home loans tend to have lower interest rates but fewer features. Take note of features such as redraw, extra repayments etc..
• Lifestyle: If all your expenses are going into the home loan and general living you may be better off choosing a lower rate loan with less flexibility.
  We have grouped basic and standard products together so you can easily see the price/feature tradeoff.
• Exit costs: rarely charged.

• Interest rate remains fixed for the period of the loan - usually one to five years.
• If interest rates go down your rate will remain unchanged so you will not benefit.
• Most fixed loans default to a variable loan at the end of the term but can rollover to another fixed term.
• Extra repayments (if available) may incur a charge.   However, you are sometimes able to make additional repaymets up to a certain amount at no charge.
  Lifestyle: for those wishing to hedge against possible future rate increases and know exactly how much their repayments will be over the fixed period.
• Exit costs: there is usually a fee.

• Also includes 100% offset account which operate in a similar manner.
• This category is increasing in popularity - your total income is deposited into the loan account allowing you to reduce the balance and term of the loan.
• Money can be withdrawn from the loan account as required and there is no minimum withdrawal.
• The potential saving depends on your earnings and ability to leave funds in the account.
• Lifestyle: for those with spare cash after paying off their regular mortgage repayments.
• Exit costs: rarely charged.

• A revolving line of credit secured against your assets.
• The interest rate tends to be higher than other home loans.
• You are only required to meet your monthly interest payments which could be dangerous depending upon how disciplined you are.
• The advantage is great flexibility for purchasing investments
• You can opt for interest only or principal and interest repayment method.
• Allows you to draw up to the prearranged credit limit - rather than redraw any excess funds.
• Exit costs: rarely charged.

Notes:
Split or Combination loans allow you to split products. For example, a combination of fixed and variable lets you hedge against interest rate fluctuations. The availability of this feature is displayed in the results tables. See FAQ's for a more indepth explanation.