BASIC HOME LOANS:

PRO, Interest rates are often half to one per cent below the standard variable rate.

CON, Limited features, less flexibility and possible penalty fees for early loan repayments.

LOW DOC HOME LOANS:

PRO, Can help you enter the property market if you are self-employed, contract or seasonal worker without regular income or proof of income

CON, Typically have higher interest rates; you may also have to pay LMI

STANDARD VARIABLE, RATE HOME LOAN:

PRO, Make regular repayments based on the current interest rate; effective if rates do not rise.

CON, Should interest rates increase your regular mortgage repayments will rise as well!

FIXED RATE HOME LOANS:

PRO, Fix your interest rate for a specific period, giving you certainty to regular repayment amounts.

CON, Should interest rates fall you'll still need to repay your mortgage at the agreed fixed rate.

SPILT RATE HOME LOANS:

PRO, Fix a portion of your interest rate to give certainty to monthly repayments while also benefit from a variable- rate portion should rates drop.

CON, If interest rates do drop you'll be left paying a higher rate for your fixed-rate portion.

INTEREST, ONLY HOME LOAN:

PRO, Pay only the interest component on your mortgage. CON- Repayments do not reduce the principal component of your mortgage