Home Loans

Types of home loans

BrightKey Finance can help you understand the different home loan options available and how each one may suit your situation. Below are some of the common loan types we can guide you through, depending on your goals, budget and lending requirements.

Variable rate loans

A variable rate home loan has an interest rate that can move up or down over time. Your repayments may change depending on lender rate movements, broader market conditions and changes to the Reserve Bank cash rate.

Variable rate loans can suit borrowers who want flexibility. Potential benefits may include the ability to take advantage of rate decreases, make extra repayments, access redraw facilities or use an offset account, depending on the loan product.

This type of loan may also be suitable if you prefer more control over your loan structure and want the option to adjust your repayments if your circumstances change.

At BrightKey Finance, we compare your options and explain the pros and cons clearly, so you can make an informed decision based on your goals, budget and future plans.

Fixed rate loans

A fixed rate home loan allows you to lock in your interest rate for an agreed period, usually between one and five years. During the fixed term, your minimum repayments generally stay the same, which can make budgeting easier.

Fixed rate loans may suit borrowers who want repayment certainty and protection from potential rate increases during the fixed period.

• More predictable repayments during the fixed term
• Peace of mind if interest rates rise after your loan is fixed

At BrightKey Finance, we can compare fixed rate options, explain the limitations and benefits, and help you decide whether fixing part or all of your loan suits your financial goals.

Construction Loans

Construction loans are designed for clients building a new home or completing a major build project. Instead of receiving the full loan amount upfront, funds are usually released in progress payments as each stage of construction is completed. This means you may only pay interest on the amount drawn down at each stage, rather than the full approved loan from day one. At BrightKey Finance, we can guide you through the construction loan process, explain lender requirements, and help structure the finance to suit your build, budget and overall goals.

Guarantor Loans

A guarantor loan may help eligible buyers enter the property market sooner by using support from an immediate family member, usually through limited security over part of the loan. The guarantor does not normally provide cash upfront, but they agree to support a portion of the borrowing if required.

• May help reduce or avoid Lenders Mortgage Insurance, depending on the loan structure
• May allow eligible buyers to purchase sooner with family support

At BrightKey Finance, we can explain how guarantor loans work, what lenders usually require, and the risks both the borrower and guarantor should understand before moving forward.