TYPES of home Loan 

Basic Home Loans

Basic loans are just that. They offer very few additional features, however as a result they do offer a discounted rate below the standard variable rate. These loans are also more restrictive, and any options you may choose normally have higher service fees attached (for example redraw facilities), therefore the choice of a basic home loan must be carefully considered and fully cost.

Variable Interest Loan
Your interest rate will vary, up or down, as interest rates move with the economy. In many cases this type of loan allows full offset of salary and surplus funds against your home loan to reduce the balance owing.

Fixed Rate Home Loans

The real benefit of fixed rate loans is the peace of mind they provide. Fixed over a specified period, generally between 1 to 10 years, all or part of your loan can be fixed, guaranteeing part or all of your repayments will remain constant throughout the fixed period, regardless of interest rate fluctuations.

Generally interest rates between fixed and professional or other discounted loans are reasonably similar, however by fixing part (or all) of your loan you can plan for the future, regardless of market forces.

Low Doc Home Loans

Designed for applicants such as the self-employed who are unable to provide tax returns to prove their real capacity to repay the loan, low document loans are generally restricted to 70% LVR, although some lenders will consider up to 80% LVR.

Applicants must still confirm they can make the required payments via a declaration, and generally some form of proof of income is required (such as previous invoices).

Split Facility Loan  
Provides interest rate flexibility by allowing part of the borrowed money to be allocated to a fixed rate and part to a variable rate.


Loans for First Home Buyers
First home buyers can take advantage of the first home buyer’s grant that effectively increases their equity in the property they purchase. Click here for First Time Buyers information .

Non-Conforming Home Loans

Non-conforming home loans refer to loans for applicants that usually have a blemished credit history, or applicants who have circumstances outside the conforming banks acceptable credit criteria (such as a history of defaults, judgments, bankruptcy or a poor loan repayment history).

Whilst in the past non-conforming loans were generally far more expensive than standard loans, with the highly competitive lending market and Victoria Finance's strength we can offer non-conforming loans at only a marginally higher rate.

Honeymoon Home Loans

Honeymoon Home Loans are generally referred to by the industry as "sucker rates" as whilst they offer a heavily discounted rate for the first year they lock the customer into the standard variable rate (or greater) for the remaining term (usually 3-7 years). Generally there are also high fees attached to such loans, negating any real benefit of the initially low interest rate.

Line of Credit Loan
Similar to a secured overdraft, a Line of Credit loan allows your equity to work for you by providing a revolving line of credit with repayment flexibility to suit your personal needs.

Reverse Mortgages

Reverse mortgages are loan products designed for those older members of our community. By accessing the equity in their homes, applicants over the age of 60 can borrow a small percentage of the overall value of their home. The older the applicant the more they can borrow.

Reverse mortgages are only repayable on sale of home or when the borrower's estate is settled after death.

Shared Equity Home Loans

Shared equity home loans are becoming a more popular loan product, particularly for parents who wish to help their children enter the property market. The "investor" contributes a percentage of their funds into the purchase of the home, thereby allowing the purchaser to service a smaller loan, with a smaller deposit.

Generally the investor then takes a percentage of the profits in return at the sale of the home.