Basic Variable

Workforce Finance offers a Basic Variable rate home loan which is one of the lowest in Australia. If you require extra flexibility, this may not be the loan for you. The basic home loan is ideal for clients who wish to make only their minimum payments and are not concerned about the features of a standard variable home loan.

It is also suitable for the budget conscious borrower who does not intend to make extra repayments or is working to a set budget.

As with all variable rate loans, the interest rate may be increased or decreased according to the market.

Standard Variable

Workforce Finance's Standard Variable Rate Home Loans are traditionally the most popular type of loan and rates will vary depending on the market. If rates go up or down, so will your repayments.

This type of loan is traditionally the most flexible and includes additional features such as an offset account and the ability to make extra repayments, to redraw funds or to split your loan.

Fixed Rate Home Loan

Workforce Finance has access to Fixed Rate home loan options. Fixed Rate loans can offer you a set term and interest rate which will generally range from 6 months to 10 years. Fixed rate loans may appeal to borrowers who like to keep a set budget as you can be certain of your home loan repayments for the fixed period.

Fixed loans however do not allow the reduction of repayment amounts if official interest rates fall and therefore you will not receive the financial benefit that a variable rate loan can offer in this circumstance.

Generally fixed rates are higher in interest in comparison to a more flexible variable rate loan. Once the fixed rate period is completed the rate will usually revert to a variable rate unless you take up the option to rollover for another fixed term.

Fixed rate home loans can also be combined with variable rate products to gain the best of both worlds; a variable rate loan for flexibility and a fixed rate loan for security.

Honeymoon Rate Home Loans

Workforce Finance have access to Honeymoon rate home loans (also known as introductory rate home loans).

These types of home loans offer a low interest rate usually for the first six months to a year of the home loan. Once the Introductory or Honeymoon period is finished the interest rate usually reverts to the standard variable rate.

The advantage of an Introductory Rate is that it offers borrowers a chance to reduce the principal quickly by making extra repayments during the honeymoon period.

The main disadvantage is that most banks charge penalties if you discharge these types of mortgages within the first 0-5 years after settlement. You are also returning to a standard variable rate which, depending on the lender, may not give you access to long term savings past the honeymoon period.

If you need more information on these types of home loan products and how they suit your individual home loan needs, enquire online or call 1300 666 500 to speak with an experienced Workforce Finance consultant.