What are the main types of mortgage?
The main types of mortgage offered in Australia can be divided into a number of categories.
Firstly, there are owner occupied loans, for people who intend to live in their home, and investor home loans, for those buying property to place tenants in as an investment.
In terms of loan structure, the main two types are principal and interest, and interest only. With a principal and interest loan, your repayments reduce the overall loan balance while repaying interest owed. An interest only loan means your repayments only cover the interest you owe your lender.