Looking for help with your home loan? We're here for you...
Navigating the world of home loans can be overwhelming, but you don’t have to do it alone. Whether you're a first-time homebuyer, refinancing your existing mortgage, or exploring investment property options, we’re here to guide you through every step of the process.
Our team of experienced loan specialists are committed to finding the best mortgage solution tailored to your needs and financial goals.
Our team of experienced loan specialists are committed to finding the best mortgage solution tailored to your needs and financial goals.
|
|
Types of home loans...
There are a number of ways to establish finance. The best option is determined by considering your own specific needs and requirements. Below are some of the most common types of finance currently available to borrowers.
Standard Variable Rate Loan This is considered to be the most common loan type available in Australia. As the name suggests the interest rate payable on these loans is variable and changes periodically as a result of market movements. Changes in the interest rate can go up or down. More flexibility is afforded to borrowers with this type of loan as it allows you to make additional payments without penalty and redraw funds that have been paid in advance. Many variable rate loans also allow you to repay the loan in full without penalty or even fix a portion of the loan amount. Another common feature is “portability” which allows the borrower to transfer the loan from one property to another. Both bank and non-bank lenders offer standard variable rate loans to customers.
|
Basic Variable Rate LoanThe “basic”variable rate loan offers even lower interest rates than the standard variable rate loan discussed above. These loans are offered by most lenders and are labeled “no frills” loans as they have minimal features. The basic variable rate loan is ideal for borrowers with limited budgets who don’t require the additional options of a standard variable rate loan such as the redraw facility, portability or ability to make lump sum payments. The potential down side comes with lack of flexibility. Most of these loan types will not allow the borrower to fix a portion of the loan without paying substantial fees. There is also the possibility of penalty for paying the loan out early.
|
Fixed Interest Rate LoanThis type of loan allows the lender to“fix” the total borrowed sum for a set period of time, typically between one and five years. Some lenders offer fixed terms of up to seven, ten and even fifteen years. In most cases the interest rate will switch back to the standard variable rate on conclusion of the fixed term period. Borrowers may choose to fix the rate again at this point. The major benefit of the fixed interest rate loan is certainty. Repayments throughout the fixed period will not change. The disadvantage for borrowers is that most lenders will not allow additional lump sum payments to be made during the fixed term without incurring penalties. Some lenders will allow “limited” extra payments at best. Should you sell your property and discharge the loan in the fixed term period there may also be penalties applied.
|
The Line Of Credit Together with 100% offset loans the line of credit is fast becoming a favorite amongst Australian borrowers, offering perhaps the highest degree of flexibility available. Your income is paid directly into the loan account reducing the balance payable. As interest is paid daily on the outstanding balance of the loan the interest charge is reduced every day that the money remains in the account. This can be best described as a ‘reverse savings’ account. The balance will always remain negative and the closer to zero the balance the less interest the borrower pays. The line of credit loan best suits those with excess disposable income in a given pay period. Living expenses can be paid by either withdrawing amounts required or by using a credit card with up to 55 days interest free. Good money management coupled with this loan type can be a very effective way to save on interest payable.
|
Professional PackagesFor loans over and above $250,000 most banks offer a professional package that may save money in both fees and interest. A professional package can provide all of the above loan types to the borrower in one simplified solution. For example, you may choose to split the loan amount in to part fixed and
part variable, providing the ultimate flexibility. For more information you can talk to one of our experienced mortgage consultants today and they will outline the various benefits that a professional package can provide to you. |
Elizabeth Wilson & Associates Pty Ltd:
ACN 104 107 084
All of our finance brokers are Sub-authorised Credit Representatives of
Elizabeth Wilson & Associates Pty Ltd which is an Authorised Credit Representative of
Astute Financial Management Pty Ltd
Australian Credit Licence 364253
ABN 59 093 587 010
Elizabeth Wilson & Associates Pty Ltd is a registered credit representative (CRN #383371) of Astute Financial Management Pty Ltd - Australian Credit Licence Number 364253
ACN 104 107 084
All of our finance brokers are Sub-authorised Credit Representatives of
Elizabeth Wilson & Associates Pty Ltd which is an Authorised Credit Representative of
Astute Financial Management Pty Ltd
Australian Credit Licence 364253
ABN 59 093 587 010
Elizabeth Wilson & Associates Pty Ltd is a registered credit representative (CRN #383371) of Astute Financial Management Pty Ltd - Australian Credit Licence Number 364253
