Glossary | Different Loan Types

Glossary

Loan Types Explained

Standard Variable

  • Take advantage of Interest Rate movements
  • Principle and Interest or Interest only
  • Direct Salary Credits
  • Free Re-Draw available
  • Split Loans available
  • Construction
  • Unlimited Extra Payments

Low Start Loan

  • Have a low introductory rate for up to 2 years while you are establishing your new home
  • Make extra payments if you wish
  • Redraw available
  • Choose variable or fixed rates during honeymoon period and then elect to go fixed or variable at the end

Fixed Rate Loan

  • Higher premium or interest rate in return for a stable rate.
  • Restrictions on extra repayments
  • Penalty or break cost if loan discharged before it has expired

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