Here is a table outlining some key features of different types of mortgage products in Australia:
|Interest rate remains constant for a set period of time, usually 1-5 years. Monthly payments stay the same.
|Interest rate can change over time based on market conditions. Monthly payments may vary.
|A combination of a fixed-rate and a variable-rate mortgage, with a portion of the loan at a fixed rate and the remainder at a variable rate.
|A mortgage with a linked savings account that allows you to offset the balance of your mortgage against the balance of your savings account. This can reduce the amount of interest you pay on your mortgage.
|Line of credit mortgage
|A mortgage that functions like a line of credit, allowing you to borrow up to a certain limit and make interest-only payments.
|Equity loan mortgage
|A mortgage that allows you to borrow against the equity in your home to finance renovations or other expenses.
It’s important to carefully consider the terms and features of any mortgage product before deciding which one is right for you. It’s also a good idea to shop around and compare offers from multiple lenders to find the best deal.