Is buying a new home a top priority on your list? If so, the thought of obtaining a home loan would have crossed your mind many times. It is exciting to purchase a new home, but along with it comes a combination of stress and tension including the paperwork, financing procedures, home loan rates and deciding on the type of home loan you prefer to pursue.

You will qualify for a home loan depending on credit history, the balance between your debt and income ratio and the advance payment you are wiling to make on the new home. The loan which is most common among many people is standard variables, basic variables and fixed rate. All these loans come with various benefits but you need to determine which loan you most qualify for and what will serve you best in the future.

From the home loan rates Australia the most popular is the standard variable home loan. This type of home loan offers people many advantages which include reducing your payment in case of fall of interest rates where you are able to save more money with low interest rates, and any additional payments made can be withdrawn. The standard variable home loan is the most flexible for people as you are given the option of paying off the loan principal without penalties. The only disadvantage of this type of loan is in case the interest rate rises, so will the payments on your house.

The fixed rate home loan on the other hand is more attractive as you always are aware of the exact payment that you will need to make, irrespective of the interest rate changing from one year to the next. Therefore, in case the interest rate rises, your monthly payments do not get affected and remain the same. The disadvantage of the fixed rate home loan is there is not much flexibility and your loan amount will not shorten simply by making additional payments. The fix rate can expire at a certain point which means that the payments you make can become higher.

The third option is the basic variable home loan which provides low interest rates in comparison to the standard variable loan. This means that you will be paying lower repayments as well. In the instance that the interest rate drops, the payments that you make also drop and extra payments can be made with no penalties. The disadvantage of the basic variable loan is that it comes with very few features and in the instance interest rate rises, your payments will also increase.

There are several types of home loans aside from the common loans taken by people. Other home loans include split home loans, bad credit home loans, offset home loans, non conforming loans and low doc home loans. To obtain the most effective loan for the purchasing of your home meet with a mortgage broker, fill in the loan application and receive the conditional approval. This is the point where you need to check if your credit history has any issues that need ironing out. Once you've sorted out your credit history you next require a valuation report ordered by the mortgage broker where an unconditional approval can be made on your home. Once you've obtained this unconditional approval, you can start looking at home construction loans that fit your family budget the best.