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Home loans

Helping you to choose the right type of home loan.

The features of your home loan will have an affect on how quickly the loan is paid off, and how much it will cost you. So it pays to think about the sort of loan, or combination of loans, that would make it easier for you to manage your debt. Most loan types also come with a choice of fixed or floating (variable) interest, so it’s a good idea to check these out as well.

Table loans

Most people choose this type of home loan. Your regular repayments are the same each week, fortnight or month, unless your interest rate changes.

Interest-only loans

With this type of loan you don’t repay any of the money you’ve borrowed until an agreed time – then you repay it all in one sum. Some people take an interest-only loan for a year or two and then switch to a table loan.

Reducing balance loans

With a reducing balance home loan your regular repayments are initially higher than other types of loans, but will steadily decrease.

Offsetting loans

With an offsetting home loan the total amount in your cheque and savings accounts can be subtracted off of your home loan before the interest is calculated.

Revolving credit loans

A revolving credit loan is like having a large overdraft. To save on interest you can keep the daily balance of your loan as low as possible by direct crediting your income into the account and then paying for things only as you need to.

Did you know?

You can split the amount you borrow between more than one type of loan. For example, some people choose an offsetting loan (so they can use cheque and savings accounts to help reduce the interest on their loan) and a table loan with a fixed interest rate (to give them more certainty over their home loan repayments).