All mortgages have the same basic principles: you borrow money to buy a property, the bank takes security over a property, you pay interest on the loan and perhaps you pay it back in full. Then they start getting complicated and you are looking at:
different interest rates
different ways to repay
borrowing for different periods of time
particular mortgages for special situations
various charges to pay
With dozens of lenders and thousands of loans out there it can be difficult to know where to start, or which one is the most suitable for you. There is also a lot of industry terminology which can be confusing. We have built an explanation of some of the most popular loan objectives, or loan types. There are many variations of these as well. Follow the links below to explore some of these loans, what they mean and how they might assist you.
First Home Buyer
Buying a house for the first time can be quite daunting. It is really no different to someone buying for the fifth time. Plus there are potential first home buyer benefits to be had.
The majority of home loans are principle & interest (P&I) which means the loan reduces over time. There is also the option of interest only (IO), which is popular with investors. A line of credit is another type.