Loan Types

Viewing 4 posts - 1 through 4 (of 4 total)

strawberry
Member
@strawberry
Join Date: 2005
Post Count: 12
March 22, 2007 - 4:02 am
Just how many different loan types are there (for both property investment and PPOR) apart from the standard provided by banks?
The other day I heard about a “bill” or a “30 day bill” – which I haven’t been able to get any further info on just googling.
Does anyone have any info on these and also what other unusual loans are out there – that are worth considering.
Alistair Perry
Participant
@aperry
Join Date: 2004
Post Count: 891
March 22, 2007 - 6:09 am
The other day I heard about a “bill” or a “30 day bill” – which I haven’t been able to get any further info on just googling.
Most commercial loans are benchmarked off bank bills, they don’t have any relevence to residntial loans.
Regards
Alistair
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
March 22, 2007 - 11:44 am
There are probably only 3 broad types of loans:
Principle and Interest (PI)
Interest Only (IO)
Line of Credit (LOC)
Terryw
Discover Home Loans
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RhysQLD
Participant
@rhysqld
Join Date: 2004
Post Count: 53
April 3, 2007 - 6:47 am
Just to expand on APerry's comment about bank bills. These are generally for commercial facilities, the bank bill rates are considered as the lender's cost of funds and they charge on a margin above these. 30/90day bank bills are used for variable facilities and 1/3/5 BBSW etc. are used for fixed term facilities.
Bank bills are market traded instruments that are influenced by the 'markets' assessment of future interest rates.