Designed as a low rate, no-frills loan.

Restrictions can include limits on additional repayments, limits on redraw amounts and frequency, lack of a 100% offset feature and the ability to combine with other products.

Usually has an upfront fee but low ongoing fees which could be an expensive option if you require a lot of other bank facilities.

Many lenders charge an early repayment penalty when you discharge or refinance this loan type within the first 5 years.

Rate tends to move in line with the official cash rate set by the Reserve Bank.

Features generally include salary credit, unlimited redraw, unlimited lump sum

repayments without penalty, ability to split with other products, parental leave, and repayment holiday to name a few.

No early repayment penalties.

Can be in a Company or Trust Name and used for business purposes.

Often used by investors for share or property investment.

Other uses include renovating, car purchase, travel, debt consolidation.

Variable rate loans with an approved limit which can be used as needed.

Repayments are interest only or can be capitalized.

Repayments are based on the outstanding loan balance not on the limit.

Designed for disciplined borrowers able to manage their finances.

The home loan, savings account, day-to-day transaction account, credit and cheque accounts are combined into a single account into which income is deposited and from which expenses are paid.

Usually a separate account to your home loan with the same interest savings benefit as an All-In-One Loan.

Generally applies to variable rate loans.

Result in interest savings and are tax effective.

Some are transactional while others are only suitable for parking savings.

Favoured by borrowers who are concerned about rate rises and prefer the peace of mind of having a set repayment amount.

Fixed rate terms are generally for 1, 2, 3, 4 or 5 years.  7, 10 and 15 year terms are also available.

The fixed rate that applies is what is current on the date the loan settles unless a rate lock fee is paid guaranteeing a rate for 30 or 60 days from approval. Lenders have different methods of calculating this fee.

Penalties referred to as Breakcosts apply if you switch products in a falling interest rate market.  Breakcosts compensate the lender's loss from having to reinvest the funds at a lower rate.

Generally there are limits to lump sum payments and no ability to redraw.

At the end of the fixed rate term the rate reverts to the standard variable rate.

A lower rate for the first 6 or 12 months.

Can be fixed, variable or capped.

Usually reverts to a standard variable rate at the end of the honeymoon period.

Can be used by lenders as a marketing tool to attract new borrowers.

Generally has a hefty penalty for borrowers wanting to switch to another product after the honeymoon period.

Commonly a combination of variable and fixed portions.

Favoured by borrowers who want to lessen the negative impact of rising rates but still want the flexibility to make additional repayments on the variable portion.

Can be a combination of products which is useful for borrowers who have a principal and interest home loan combined with an interest only line of credit for investment purposes.

Eligibility can be based on membership to specific professional associations such as those for doctors and solicitors, or can be based on loan size.

Benefits include rate concessions; fee waivers on application fees, credit cards and transaction accounts; discounts on home and contents insurance and life insurance policies insurance premiums; and more.

Rate discounts increase with larger loan amounts.

Most lenders charge an annual fee.

There are similar packages on the market such as Shareholders Package.

Designed for borrowers who don't have a deposit but do have good cash flow.

Borrowers need to demonstrate genuine savings of 3% of the purchase price and have enough funds to pay for costs on top of the purchase price.

Applicants must have stable employment and residential backgrounds and a good credit history.

Available for both owner occupiers and investors.

Not all products are available.

The one-off mortgage insurance premium is higher than traditional loans.

Designed for borrowers who are unable to provide acceptable documentation to verify a savings history.

Borrowers can borrow up to 97% of the purchase price.

Balance of funds to pay the 3% deposit and purchase costs must not be borrowed but can come from other sources such as a gift or the sale of assets.

Available for both owner occupiers and investors.

The one-off mortgage insurance premium is higher than traditional loans.

Lo Doc Loans are designed for borrowers who are unable to prove their income by way of tax returns.  These borrowers are required to self certify their income or provide a certification from their accountant confirming their ability to repay the debt.  Income is confirmed in other ways such as by way of bank account statements.

No Doc Loans are designed for borrowers with equity who don't want to, or are unable to, provide income verification.  Although no income declaration is required, borrowers must provide a warranty that they can repay the loan.

Both are useful for self employed individuals, companies and trusts who have a short term trading history; have uneven cash flows; or don't have up to date financial documentation or the time to prepare same.

Often rates automatically reduce each year of the first 3 years if there is a satisfactory repayment history.

Designed for borrowers who have paid or unpaid credit defaults, loan arrears or previous bankruptcy.

The level of credit impairment influences the interest rate and the loan amount that can be borrowed.

Designed for borrowers who have purchased a new home but need to sell their existing home.

Repayments vary depending on a borrower's circumstances.  They may be interest only on the total loan or may come out of the proceeds when the existing home is sold.

Usually a maximum 6 month term.

Construction loans are tailored to draw down in stages over a limited period.

Generally there are 5 draw downs of the total construction cost: slab down (15%); frame up (25%); external brick work completed (20%); lock up (20%); and practical completion (20%).

Most lenders require interest only repayments during the construction phase however some lenders allow repayments to be capitalized for a limited period.

Different policy applies to owner builders to that of licensed builders.

Some land loans require construction to commence within 2 years.

Designed to assist "asset rich, cash poor" retirees who need money to supplement retirement income for many reasons such as home upkeep, or take an overseas holiday, or pay medical bills.

For borrowers over 60 years of age. The amount of equity that can be released depends on the borrower's age and the value of the property.

Variable and fixed options are available.

Choice of receiving payment is available:  lump sum; regular payment; or combination of both.

Some lenders offer a "no negative equity guarantee" for any debt exceeding the value of the home.

Designed for borrowers who permanently reside out of Australia and are not Australian citizens or for Australian citizens who have been living and working out of Australia for more than 6 consecutive months.

Foreign nationals need to obtain foreign investment approval prior to purchasing property in Australia.  For policy details go to www.firb.gov.au.