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Home Loan Types – Explained

Choosing the right home loan can feel overwhelming, especially with so many options available. To help you get started, here’s a simple guide to the most common types of home loans.

Talk to an expert

Basic
Variable Loan

A no-frills loan with a lower interest rate and fewer features.

Best for:

Budget-conscious borrowers who don’t need extras.

Standard Variable Loan

The most popular home loan option. It offers flexibility and features like:

  • Making extra repayments
  • Splitting your loan
  • Accessing extra funds through a redraw
Best for:

People who want flexibility and plan to pay off their loan faster.

Fixed
Rate Loan

This loan lets you “lock in” your interest rate for 1 to 5 years. Your repayments stay the same during this time, giving you peace of mind if rates go up. Be aware, there can be extra costs for locking the interest rate before settlement.

Best for:

Those who want certainty and stable monthly repayments.

Combination (split) Loan

Part fixed, part variable – this loan gives you the best of both worlds. One portion of your loan has a fixed rate, the other moves with the market.
Best for:

Borrowers who want some protection from rising rates, while still enjoying flexibility.

Low Doc
Loan

Designed for self-employed people or small business owners who may not have all the usual paperwork like tax returns.

Best for:
People with a solid income but non-traditional documentation.

100% Offset Loan

Links your home loan to an everyday bank account. The more money you keep in that account, the less interest you pay on your loan.
Best for:
Borrowers who keep savings and want to reduce interest without locking money away.

Non-Conforming Loan

For people who don’t meet the usual lending criteria, such as:

  • Starting a new job
  • Casual or contract work
  • Low savings or deposit
  • No credit history
  • Life changes like divorce
Best for:
Borrowers with non-standard situations.

Credit-Impaired Loan

For those with a history of missed payments, defaults, or bankruptcy. Some lenders may still be able to help.
Best for:

Check your credit file at www.equifax.com.au to see where you stand.

Bridging Loan

Helps you buy a new home before selling your current one. It’s a short-term loan where you usually pay interest only, with the full amount due after you sell.
Best for:
Homeowners in between properties.

Construction Loan

Designed for building or major renovations. You receive funds in stages as work is completed.
Best for:
People building their home or completing major renovations.
Note: This is general information only and doesn’t consider your personal circumstances. Always speak to a mortgage expert before choosing a loan.

What our customers are saying...

Michael Batten
Michael Batten
We had the best experience with Paul!!! We couldn’t get a loan and got told BS lies by other main stream businesses, which just left us with a bad fingerprint. We were lost and about to give up on the dream. Until we got recommended to go see Paul. It totally changed our lives as we now have our own family home and loving it!! So stoked and grateful. Thanks a lot guys!!!
Cameron Jones
Cameron Jones
I had a great experience working with Brenton. He provided valuable information along the way and helped walk my wife and I though the purchase of our first property! I would highly recommend Brenton and Eadon home loans
Jarrett Niejalke
Jarrett Niejalke
Best service ever! I had no idea where to even start but they went above and beyond and walked me through every step to get me into my first home. Can't praise them enough. Highly recommend. Big thanks to Stewart and the whole team.
Dermy17
Dermy17
Working with Paul and the team was so effortless. The access they have in their office to answer any questions is top shelf. Learnt a lot and they helped us achieve a dream of purchasing a holiday house. Couldn’t recommend high enough.