Most families that have purchased a home will have a home mortgage or home loan – same thing, just different terminology. A standard home loan will have a term of 25 or 30 years. The interest rate on the home loan can be variable (meaning it fluctuates as a result of changes in interest rates from the Reserve Bank (AUS)) or fixed (which is a static interest rate for a pre-determined time frame).
Home Mortgages can be obtained from a bank, building society, or other financial institution. A Mortgage Broker may even be useful in helping you find a loan suitable for your circumstances.
Generally, borrowing more than 80% of the value of your home will result in Lenders Mortgage Insurance (LMI). LMI is an additional fee payable, either upfront or built into the loan, to compensate the lender for taking on additional risk due to your deposit being less than 20% of the home value.
Hey, why not check out some blog articles that I have written on home mortgages and home loans?