The easiest way to enter the home ownership market in Australia is by qualifying for an Australian home loan. A home loan gives buyers the ability to pay for their home over time, entering the housing market with little cash up front. With an Australian home loan, the benefits of home ownership start immediately instead of waiting a long time to save up the funds for a home.
For borrowers looking to enter into home ownership, there is a variety of Australian home loans available. Which type of loan you choose really depends on your current financial situation. You’ll choose which Australian home loan best fits you based on how much you can afford to pay monthly, your current state of employment, the amount of the down payment you can afford, your age, and you personal finance goals.
Currently, the most popular Australian home loan is the Standard Variable Rate loan. This is an adjustable rate loan with an interest rate that is not locked. Rather, the interest rate in this type of loan changes periodically, based on the Reserve Bank of Australia’s rates and individual lenders’ policies for the loan. It is a popular loan because the rate fluctuates and borrowers can save a lot of money if the rate goes lower. The standard variable rate loan also includes many features, such as early payoff advantages, that make it a popular loan. There is also a Basic Variable Rate loan that is available. It includes the varying rate feature of the Standard variable loan, but does not include any added features.