Our Products are constantly being revised to meet changing conditions and the needs of our Clients.  Please don't hesitate to call us on 1300 574 428 if you need any help with choosing the best Loan to suit your needs, or if you need any clarification about what is contained in any of our Loan Products.  We want to help you - so simply give us a ring!

Variable (Principal and Interest) home loans

The rate charged on a variable loan moves up or down in accordance with movements in interest rates, as set by the Reserve Bank. Basic variable loans generally have fewer loan features than a standard variable loan. Basic variable loans are suitable if you are looking to pay off a consistent amount over the full term of the loan, but are not suitable if you are looking to pay off your mortgage quickly.

Fixed Rate (Principal and Interest) home loans

A fixed rate loan is a loan that has a fixed interest rate and therefore fixed loan repayments. The time period of these loans varies, but you can usually “lock in” your repayments for between 1-5 years. Although the fixed rate period may be 3 years, the total length of the loan itself may be 25 or 30 years. At the end of the fixed loan period you can decide whether to fix the loan again for another period of time at the current market rates or convert the loan to a variable interest rate for the remaining time left of the loan.

Split Rate (Principal and Interest) home loans

A split rate loan is a loan that has one portion of the loan fixed and one portion variable. You can select how much to allocate to each.

Interest-Only home loans

At First Australian, interest is charged on the daily balance of the loan.  With an Interest Only Loan you only pay the interest on the principal outstanding on the loan, which is charged on a monthly basis. Therefore, loan payments are lower than with a standard principal and interest loan. At the end of the interest only period - usually ten to fifteen years - you must start making Principal and Interest Repayments over the remaining term of the loan, or convert the loan for another interest only term.

Line of Credit home loans

This type of property loan revolves around equity built up in your property and allows access to funds when needed. These products are creative ways to raise funds for investment by providing cash up to a pre-arranged limit. Each month the loan account balance is reduced by the amount of cash coming in and increased by the amount paid on the credit card or withdrawn in cash. As long as there is consistently more cash coming in than going out these accounts can work well. However, they can be very costly if the balance of the line of credit is not regularly reduced. It requires an interest-only payment as a minimum each month, which can add up to a lot of interest over the long term. You need to be very disciplined to make this kind of loan work for you!

Low-doc home loans

A low-doc or no-doc mortgage is ideally suited for investors or self-employed borrowers looking to refinance, purchase or renovate. No tax returns or financial reports are required. To allow for the reduced documentation, a higher interest rate will usually be expected.

Introductory home loan

The interest rate is usually low to attract borrowers. Also known as a honeymoon rate, this rate generally lasts only for around 12 months before it rises. Rates can be fixed or capped. Most revert to the standard rates at the end of the honeymoon period.

This is only a quick overview of the different types of home loans available. First Australian will sit with you and review all the available home loan products against your specific requirements to help you find the loan that best suits you.

Details of our Prime products are available here, and details about our Lo-Doc products are here.