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| Types of Home Loans |
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| At myloanonline.com.au we offer a range of products enabling us to offer the product that best fits your needs. We offer all of our loans with a choice of either Fixed or Variable rates, with the flexibility to have your loan split, having a portion fixed, and portion variable. |
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| We also offer both traditional ‘full documentation’ loans for those who can substantiate and confirm their income, and ‘low documentation’ loans suitable for self employed people who cannot provide full financial documentation. |
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| We offer all of our loans in both ‘Standard’ and ’Premium’ form. These are just as their names suggest. |
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Our Standard loan is a no frills loan with a discount rate. It has no ongoing fees or charges and can be used for both owner occupied and investment properties. |
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Our Premium loan offers further discounts over our Standard product, and allows the borrower further flexibility in tailoring their products to best suit. The Premium loan comes with an annual fee of $300. |
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| On each of these formats we offer a wide range of fixed rates, variable rates and line of credit options. Please read below for an explanation of each. |
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| Fixed Rates |
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| Fixed Rates are loans where the interest rate is “locked in” for a specified period of time, in our instance 2, 3 and 5 years. They provide certainty as your repayments will not change if interest rates increase whilst your loan is fixed. Accordingly, for those who are more risk averse they work best. |
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| However, there are some downsides to a Fixed Rate loan. They are more expensive to get out of if you decide to “break” your fixed term. You should always try to match your fixed term to your medium term goals. They also offer very little flexibility (no redraw, no extra repayments), and the current interest rates are higher than our variable rates. |
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For those who are risk averse and prefer to know well in advance their monthly commitments, Fixed Rates are a better product. They provide certainty over the life of your fixed term; however they do not guarantee to be cheaper over the life of the loan.
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| Variable Rates |
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| These loans have an interest rate that is linked to money market rates and are subject to change in line with changes by the Reserve Bank of Australia (RBA), or general market changes. |
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| In recent years we have seen these interest rates increasing; however they do fluctuate up and down over the longer term of a home loan. |
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| Variable loans are far more flexible than Fixed loans. They provide extra options such as redraw, the ability to make extra repayments, and a product called a Line of Credit which is not available as a Fixed Rate loan. |
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| Our Variable Rate loans also have a lower interest rate than current Fixed Rate offerings. |
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| Low-Documentation Loans / Lo Doc (Self Employed) |
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| A growing area in the financial market are these loans which are tailored for borrowers where at least one applicant is self employed (generally for at least 2 years with a registered ABN). |
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| Lo Doc loans allow self employed people to buy or refinance their properties without the need to provide to lenders their complicated financials and tax returns. The borrower needs to provide a declaration confirming income, and the lender accepts this as verification. |
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| These loans are suitable for anyone who has an ABN (must be registered for GST and have 2 years trading history as a minimum requirement). |
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| These can save an enormous amount of time and energy spent trying to convince a bank about your financials and can save in accounting fees. |
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Our Lo Doc loans are offered in both fixed and variable rates and we also offer a line of credit.
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