A guide to the different types of home loans and in mortgages Australia

In Australia, there are different types of mortgages and home loans available to suit your individual circumstances. Whether you are a first home buyer, an investor, or looking to refinance, it’s important to understand the different types of loans on offer and how they work. In this article, we will take a look at the different types of mortgages and home loans available in Australia, as well as the features and benefits of each.

Fixed-rate mortgages

A fixed-rate mortgage is a home loan in which the interest rate is set for a fixed term, usually between one and five years. The interest rate on a fixed-rate mortgage is usually higher than on a variable-rate mortgage, but it is fixed for the term of the loan, so you know exactly how much your monthly repayments will be. This can make budgeting easier. Fixed-rate mortgages are available from most lenders in Australia. You can compare fixed-rate home loans on the Compare home loans page on our website.

Variable-rate mortgages

Variable-rate mortgages in Australia are mortgages where the interest rate charged on the loan varies over time. The interest rate is usually linked to an underlying index, such as the cash rate set by the Reserve Bank of Australia (RBA). Variable-rate mortgages can offer borrowers a number of advantages. For example, if interest rates fall, the borrower’s repayments will also fall. This can provide significant financial relief, particularly for borrowers on a tight budget. 

Additionally, variable-rate mortgages often offer features such as offset accounts and redraw facilities, which can help borrowers manage their finances more effectively. However, variable-rate mortgages also come with a number of risks.

First home buyer loans

First home buyer loans in Australia are available from a variety of sources, including banks, credit unions, and other financial institutions. The terms and conditions of these loans can vary significantly, so it’s important to compare offers carefully before choosing one. Most first-home buyer loans in Australia are variable-rate loans, which means that the interest rate can change over time. This can make budgeting for your loan repayments difficult, as your monthly payments may increase or decrease depending on market conditions.

Refinance loans

There are many reasons why people choose to refinance their loans in Australia. Some people do it to get a lower interest rate, while others do it to consolidate their debt. Some people also choose to refinance their loans to switch from a variable interest rate to a fixed interest rate. Whatever the reason, refinancing your loan can be a great way to save money. 

Investment loans

There are many different types of investment loans in Australia, each with its own set of benefits and drawbacks. The most common type of investment loan is the home loan, which can be used to purchase a property or an investment portfolio. Home loans usually have low-interest rates and can be repaid over a long period of time. However, they may require a large down payment and may have strict eligibility requirements. 

Another type of investment loan is the personal loan, which can be used for a variety of purposes, including investments. Personal loans usually have higher interest rates than home loans, but they can be repaid over a shorter period of time. Personal loans may also have more flexible eligibility requirements than home loans.


In conclusion, the types of mortgages and home loans in Australia can be confusing for first-home buyers. However, with a little research and advice from experts, you can find the right home loan for your needs. The most important thing is to compare home loans from different lenders to find the best deal for you.

Please get in touch with us regarding any queries related to different types of mortgages and home loans in Australia or other services offered by Fincue. You can call us at +61 490 348 767 or shoot an email at info@fincue.com.au.