Archive for the ‘Types’ Category

What is a Standard Variable loan?

April 19th, 2010

The most popular loan in Australia is the standard variable loan, often called the standard variable rate or SVR loan.

The reason why SVR loans are popular is partly because they are a fairly simple product and partly because these are the loans that mortgage providers tend to roll clients on to once they have come to the end of a promotional or fixed interest period.
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Foreign Currency Mortgages

April 12th, 2010

Foreign currency mortgages are mortgages that are not advanced in Australian dollars but are advanced in another currency.

There are two main types of foreign currency mortgages, those that are advanced on foreign properties and those that are advanced on Australian properties.
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No Deposit Home Loans

March 22nd, 2010

100% Mortgages are home loans that are offered to home buyers without a deposit.

Mortgage Lenders insist on a deposit for a number of reasons.  Firstly a 100% mortgage gives the lender a margin of safety if the borrower defaults and the market goes down (and the number of defaults rises sharply when house prices fall).  A large deposit means that if the home owner defaults then there will be a surplus of the sale over the loan, and so the whole of the loan can be recovered.

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Home loan lines of credit

March 18th, 2010

Lines of credit secured on a home are a growing segment of the mortgage market in Australia. Essentially the lines of credit are a loan that is guaranteed on a house or other property but where a certain sum is held in reserve and not loaned out to the customer.

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Low documentation home loans

March 17th, 2010

Low documentation home loans, also known as “lo doc” and “low doc” home loans, are mortgages that do not need the same level of documentation that most other mortgages need.

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