Loan Term Glossary

No Doc Home Loan - This loan is a pure asset-lend, no documentation loan. It must be unregulated i.e. business or investment purposes only and suits those borrowers who do not wish to provide any details regarding income, assets and liabilities. Income must be self-certified.The wrong home loan could cost you a fortune – so it’s crucial to find the one that’s right for you.

Construction Loans - Construction Loans are for those particular people who are considering building a new house or performing renovations, as now some banks and lenders provide the same type of loan for that purpose as well.

Fixed Rate - A fixed rate home loan locks in the interest rate for the term that you choose, between one and five years. The loan will then revert to the standard variable rate after the fixed term expires.

Variable Rate - The variable interest rate is based on many factors and can fluctuate depending on ecomonic conditions and times of year. Government policies can also affect the rate that is set at any given point in time.

Residential Home Loans - A traditional loan for owner-occupiers or investors. Most suitable for borrowers who require a flexible loan with all the features whilst still receiving a competitive variable or fixed interest rate.

Lo Doc Residential Home Loans - They have all the features of our Standard Loan without the hassle of providing your tax returns, which usually don’t reflect your true income due to your accountant’s efforts to reduce your tax liability.

Asset Lends - Providing the loan amount doesn’t exceed 70% of your properties worth, it’s done, we don’t need to know your income or your asset and liability situation. Remember even on this loan type, you can pay extra and redraw it for free at any time.

- A policy that protects lenders against some or most of the losses that can occur when a borrower defaults (cannot refuse to pay a mortgage loan. mortgage insurance is mandatory for borrowers with a down payment of less than 20% of the home’s purchase price. If you manage to have a deposit greater than that amount, insurance is not required.