Standard Variable: has all the features you want with a standard variable rate. No interest rate discount is offered and normal fees may apply.

  Basic Variable: has most of the features you want with a lower variable rate. These loans are often available with no establishment or ongoing monthly fees. Very attractive to buyers who want to reduce their monthly repayment and save on fees, while still having most of the regular loan features.

  Professional Package: has a reduced variable rate with no establishment or ongoing monthly fees on the first loan or any subsequent loans taken. Other benefits include discounts on insurance products, credit cards, financial plans or transaction accounts. Most lenders will charge an annual fee of $300-400 however.

  Low Doc Variable: is designed specifically for self-employed people who do not have sufficient proof of income to qualify for a normal loan. Higher deposit needed and rates may be higher.

  Offset Variable: loan account is linked to a separate savings account to enable interest earned on the savings account to offset or reduce the interest which would normally be calculated on the loan account.

  Parental Guarantee: allows parents to offer their home as additional security so that 100% of the purchase price can be borrowed, plus costs in some cases. The loan will not exceed 80% of the combined security value and no mortgage insurance will be payable. See Parental Guarantee question.

  Property Share: easy to manage home loan option which allows friends or relatives to purchase a property together but keep their loans separate.
For example, a $400,000 loan can be split into two separate portions with two separate account numbers. Property Share can help first home buyers and investors to make a puchase which might not otherwise occur.

Most lenders will approve 95% of the purchase price and then add the mortgage insurance premium to the loan amount as well. This could bring the total loan to approximately 97.5% of the price. You would then need to contribute

  2.5% deposit

  State Government stamp duty

  Titles Office fees

  your solicitor's fee

  your share of the annual Council rates charge

  service connection fees if applicable

Some lenders will approve 100% of the purchase price including the mortgage insurance premium. You will then pay a higher mortgage insurance premium because of the additional risk to the lender. The other fees and expenses listed above must still be paid.

The First Home Owners Grant will assist you pay some of the State Government stamp duty, but usually not all of it.

It is not recommended that borrowers consider loans in excess of 100% of the purchase price.

In general terms, the best course of action is: start saving as early as possible, save as much as possible and keep your bank statements to prove your savings record.

What types of variable rate home loans are available?
What is the maximum loan to value percentage I can borrow?
Can I have a combination of Fixed and Variable rates?
Can I "lock in" my fixed rate prior to settlement?
What is a Parental Guarantee?
What do lenders look for in assessing a loan application?
Do I need to prove genuine savings?
What home loan features are available to me?