Frequently Asked Questions

What are the different loan rate types?

In Australia the two common home loan rate types are Variable and Fixed rate loans.  As a compromise Split loans are also available.  Click on the links above for a detailed explanation.

What are the different repayment types?

Principal and Interest (P&I) and Interest Only (IO) repayment along with Lines of Credit (Loc) provide options to reduce loan balances or manage cash flow.

What is an Offset account and how is it different than a Redraw facility?

Offset accounts and Redraw facilities  help to reduce the interest charged on a loan learn more here

What is LMI and are there any ways to avoid paying it?

Lenders Mortgage Insurance is often referred to as LMI. It is insurance that a lender takes out to insure itself against the risk of not recovering the full loan balance if the borrower (you) were unable to meet loan repayments.  One way to avoid is to receive a family pledge, find out more here

Before I consolidate debt (credit cards or personal loans) into a home loan is there anything I should consider?

Debt consolidation involves bringing your existing debts together into one new loan. The objective is to reduce the number of individual payments you make and reduce the interest rate you are paying on your more expensive debts.  There are some things you should consider, read more here