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LOAN TYPES
Here is a list of our loan types available;
Please scroll down for details and descriptions of each
Introductory and honeymoon rates
Standard variable rates
Basic variable rates
Fixed rate home loans
Investment home loans
Professional packages
Bad credit or non-conforming home loans
Reverse Mortgage
Introductory and honeymoon rates
Introductory and honeymoon rate home loans are a good way to keep costs down in the first 6 to 12 months of your loan term. When combined with 100% offset, a low honeymoon rate home loan can offer considerable savings in the start up period of your mortgage. It's also an excellent time to make extra repayments and get your loan paid off sooner.
These home loans are generally offered only for new lending and are an incentive from your lender to take their home loan package. With that in mind, it's a good idea to have a detailed understanding of what rate and product your loan will revert to when your honeymoon period expires. Some honeymoon rate home loans may have restrictions so make sure you get the full story from your mortgage broker. Ask your broker to explain any early discharge fees and ongoing charges that may be applicable on some honeymoon rate home loans. Also check to make sure you can switch to another product in the future should your circumstances change and what costs may be involved in changing loans.
Standard variable rates
Standard variable rate home loans are often a full featured home loan product. Many offer such features as 100% offset, redraw facility and the ability to make extra unlimited repayments.
One downside of the standard variable home loan is that it can often attract a higher interest rate. Ask your lender or broker if they have a basic variable rate or professional package that may offer similar features at a lower rate of interest.
Basic variable rates
Basic variable rate home loans are a no frills alternative to a full featured higher rate mortgage product. They are a good option for people who don't need the benefits of offset accounts and other features that may seldom be used. Since you choose to do without these features, your lender offers you a lower basic variable interest rate. For many this is a great way to save on interest costs and pay their home off sooner.
Make sure your basic variable rate loan allows you to redraw your extra repayments and find out if there is a charge for doing so.
Fixed rate home loans
Fixed rate home loans give you the peace of mind of knowing your rate or repayment won't change for an agreed period (usually 1 - 10 years). For single income households and families, they are a popular way of making sure you can afford your repayments even if interest rates rise as your loan rate is fixed at an agreed level for the fixed rate period.
Ask what limits are placed on extra loan repayments and if you can redraw extra payments should you need the funds down the track. Check to see what loan product your rate will revert to after the fixed rate period expires. Be aware if you break your fixed rate period you may be liable for early discharge or break costs.
Investment home loans
Investment home loans are commonly used to purchase rental properties and other forms of personal investments. Most investment home loans can be tailored to a specific purpose. Like normal home loans, investment loans can generally be fixed or variable and some may be interest only or even interest paid in advance. It's a good idea to ask your accountant for advice before investment borrowing to make sure you take full advantage of any tax benefits you may be entitled to.
Professional packages
Professional packages are designed to attract your business by offering discounts on both variable and fixed rate home loans for eligible borrowers. To qualify you generally need to borrow a minimum amount or in some cases be a member of a professional organisation. It's well worth considering these options as they often offer benefits on other banking products as part of the package. These can include fee-free banking, insurance discounts and reduced application fees.
Bad credit or non-conforming home loans
Bad credit and non-conforming home loans are designed to cater for borrowers who do not meet traditional lending guidelines. You may have a poor credit history such as bankruptcy or defaults. For other borrowers, it could be a case of an unusual income source or a lack of savings to put towards a deposit. Maybe you've got a lot of debts you're looking to consolidate into one and your lender won't give you the loan you need? Non-conforming home loans give people who would have normally not qualify for a home loan the option to achieve their goals. Non-conforming lenders do often charge a higher rate of interest than traditional mortgage lenders. Be sure to get the full story. Find out what your total establishment costs will be before you start and also what break fees you may be charged should you decide to pay out or refinance the loan down the track. With more than one non-conforming lender in the market, it pays to shop around.
Reverse Mortgage
A Reverse Mortgage allows you to access the equity in your home in your senior years when you may not have a high income to service a home loan. Instead of making regular repayments each month you have the flexibility of allowing interest to accumulate against your mortgage. Keeping this in mind it’s a good idea to consider how many more years you intend to live in the home and how long it’s going to take the interest to eat into your equity. Not taking the entire reverse mortgage in a lump sum is a good way to reduce interest expenses. Also be sure to check with Centrelink to make sure it’s not going to affect your pension or welfare benefits. We also recommend you seek legal advice and tell your family of your intentions so there’s no surprises when the time comes to liquidate your estate.
When established and managed the right way a reverse mortgage can provide security and allow you to do the things you may not have been able to do in the past. Fix up the house, take a holiday or maybe help out the kids, the choice is yours.
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