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Please select from the following and let us help you find the best possible option:
Choosing the right home or investment loan from the many hundreds available can be a daunting task.
Making the wrong choice can cost you substantially in the long run.
If it was simply a matter of finding the lowest interest rate you wouldn’t need the services of an experienced broker.
Understanding the jargon, knowing the potential pitfalls and being aware of slick marketing trickery used by some lenders is important when analysing and comparing mortgage products. That’s where we come in.
Because we know the right questions to ask we will listen to and understand your requirements and match the most appropriate product to your needs.
Some of the types of home and investment loans we can provide are:
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Standard Variable Home Loan >>
Standard Variable Rate loans are the most popular type of loan, are based on the official Reserve Bank rate and, as the name suggests, will vary with time depending on the market. If rates go up so will your repayments and vice versa if they go down.
This type of loan is traditionally the most flexible and may include optional features such as the ability to make extra repayments, to redraw funds or to split your loan, just to name a few. It may also be possible to incorporate an introductory discounted rate with this type of loan. Introductory rates are usually effective for the first 12 months of the loan, at which it then reverts to the standard variable rate for a prescribed period.
Basic Variable Home Loan >>
Line of Credit, also known as Equity Lines or Revolving Credit, works more like a credit card and provides increased flexibility. The lender assigns you a credit limit secured against your property, and when you need cash you draw against that limit, usually by writing a cheque or using a special debit card. As you pay back the loan (the terms of repayment vary), the money becomes available to you again.
Line of Credit loans usually attract a slightly higher rate of interest than a loan where the balance is continuously reducing. One of the biggest advantages of a Line of Credit is that you always have ready access to money, which makes this type of loan attractive to investors.
Fixed Rate Home Loan >>
If the certainty of set loan repayments appeals to you then perhaps a Fixed Rate loan is just what you need. Fixed Rate loans are based on a set term and interest rate, anywhere from 6 months to 10 years. This provides some level of security but does not allow the reduction of repayment amounts should official interest rates fall.
Once the fixed rate period is finished the rate will usually revert to a variable rate unless you decide to rollover for another fixed term. These loans can be combined with variable rate products to provide a mix of security and flexibility. For example 60% of your loan could be a standard variable loan whilst the remaining 40% could be fixed
Split Home Loan >>
If you are concerned about interest rates rising, but dislike the inflexibility of a fixed rate loan, you can get the best of both worlds with a Split Variable / Fixed Loan. You get the advantage of features like accelerated repayments, redraw and mortgage offset, without exposing your entire loan to fluctuations in interest rates.
How you split the loan is normally up to you but 50/50 or 60/40 splits are the most common. Be aware that penalties apply if you break the fixed portion of the loan early.
Introductory / Honeymoon Home Loan >>
These types of loans offer a low interest rate usually for the 1st year of the loan. The rate may be fixed, variable or capped, meaning that if interest rates rise your rate will not go up, but if rates fall that rate will go down and you will benefit. Once the Introductory or Honeymoon period is finished the interest rate usually reverts to the standard variable rate.
The advantage of an Introductory Rate is that it offers borrowers a chance to reduce the principal quickly by making extra repayments. The main disadvantage is that most banks charge penalties if you discharge these types of mortgages within in first 3-4 years after settlement.
Line of Credit / Equity Home Loans >>
Line of Credit, also known as Equity Lines or Revolving Credit, works more like a credit card and provides increased flexibility. The lender assigns you a credit limit secured against your property, and when you need cash you draw against that limit, usually by writing a cheque or using a special debit card. As you pay back the loan (the terms of repayment vary), the money becomes available to you again.
Line of Credit loans usually attract a slightly higher rate of interest than a loan where the balance is continuously reducing. One of the biggest advantages of a Line of Credit is that you always have ready access to money, which makes this type of loan attractive to investors.
Low Doc Home Loan >>
Low Doc Loans are useful for borrowers who are unable to substantiate their level of income using conventional documentation required by most lenders or for borrowers who may have complicated financial structures. They are typically designed for people with special needs, and allow borrowers to forego the time and effort of culling tax records, bank statements, brokerage reports and other documents in order to obtain finance.
There are many variations on these types of loans, and it is a good idea for potential borrowers to find a program that meets specific asset or income requirements. Some low-doc mortgages allow customers to simply "state" their income by filling in a blank on the application. Others go so far as to not require any information about income, assets or even existing debt. Each step down the ladder requires the borrower to put either more money of their own into the transaction or accept a higher interest rate.
Bridging Home Loan >>
This is a temporary loan which allows a buyer to complete the purchase of a new property before selling their existing property. It is also useful for borrowers who want to finance the building of a new home while still living in the old one.
The main advantage of a bridging loan is its quick and you can get the money you need in order to move ahead with the purchase of your new home. But as always there are disadvantages, the main of which is usually a higher interest rate, since Bridging Loans tend to be riskier for the lender.
Non Conforming Home Loan >>
Non-conforming loans are designed for borrowers that do not meet 'standard' bank criteria and may include seasonal or contract workers, non-residents, small or no-deposit holders or even those with a poor credit history. This type of loan may also be suitable if you wish to borrow 100% of the property value. In most cases non-conforming loans attract a higher rate of interest.
Professional Home Loan >>
Most banks offer a discounted rate to a variety of borrowers. This discount is usually a set percentage off the standard variable rate or a line of credit, with just a few banks offering discount to their fixed rate products. The criteria for qualifying for a professional package varies form bank to bank, as do their tiers of discounts.
The majority of lenders now base their criteria on the size of your loan - with discounts starting for loans greater than $150,000 with a limited number of banks. For loans greater than $500,000 most lenders will now discount their standard variable rate products by 0.5%. Professional rate products are hard to beat if you qualify. They provide you with a very competitive rate along with all the features most borrowers are wanting today. Call us today to find out more.
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