Home Loans

Standard Variable Loan

A standard variable loan offers the customer freedom of choice with complete repayment flexibility and a full range of features. The interest rate on these types of loans fluctuates (up or down) as interest rates change in our financial markets.
 
There are additional benefits associated with a standard variable loan:-

  1. Flexibility to choose between interest only repayments or principal and interest epayments. 
  2. Redraw facility is available and you can utilise this option to redraw payments already made in advance. 
  3. You can have a partial or 100% interest offset facility attached to your loan when the loan includes repayments for principal and interest. Interest offset is not available on interest only loans. 
  4. Principal reduction may be made at any time without attracting additional fees. 
  5. You also have the option of taking the loan over a maximum of 30 years but you can opt to repay your loan in full within a shorter period of time without attracting additional penalty charges. 
  6. Clients can make as many additional payments to their standard variable loan as they wish. 

It is important to note that lenders may have other associated costs to cover administration fees. Our consultants can compare these facilities and ensure that the appropriate loan structure is put in place to help you achieve your financial needs.

Basic Variable Loan

Basic variable rate loans are sometimes referred to as the ‘no frills’ alternative to the standard variable rate loans. The interest rate is lower than a standard variable loan, making them attractive to the budget conscious borrower. It offers a lower variable rate but with fewer features. These loans normally have no ongoing fees associated with it.

Introductory (Honeymoon)

An Introductory Variable Rate loan generally offers a guaranteed low rate for an initial period of time (usually 12 months) after which most interest rates will revert to the Standard Variable Rate. It is Ideal for those wishing to take advantage of lower initial repayments.

Fixed Rate Loan

Fixed rate loans are funds lent over a set term at a set interest rate. This gives the borrower the certainty of knowing exactly what their monthly repayments will be should their circumstances change. Some lenders may impose early repayment penalties if you make a lump sum reduction to your loan or you pay the loan out in full. However, a fixed rate loan is ideal in a rising interest rate market as this guarantees you of your interest rate and repayments for a set time.

Bridging Loan

A Bridging Loan is available to borrowers who wish to purchase a new home now and sell your current home later. These loans are especially helpful to ‘bridge’ the gap between the sale of one property and the purchase of another. The interest rate on a Bridging Home Loan is usually the same as a Standard Variable Rate Loan. A Bridging Loan ensures that the borrower will not miss out on a desired property because they haven’t sold the current home 

Refinancing 

Mortgage refinancing is a process of renegotiating your original mortgage agreement. 

With the lending sector constantly changing and lenders constantly enhancing their products to attract new customers, existing customers are left behind, often with products that are no longer as well placed in the market as they once were. It is always important to keep an eye on how your mortgage stacks up against current market leaders and having a mortgage broker can simplify this for you.

While there are inherent costs in altering your existing mortgage you must compare these to the savings made over the entire term of your loan. 

Low Document Loans

Low Documentation (or No documentation) loans are designed for the self-employed or small company borrower whose financial statements may not be available for many different reasons (eg Accountant hasn’t completed their financials). The borrower must have a sizeable deposit or equity in existing real estate property. Generally, most lenders lend a maximum of 80% of the property value with mortgage insurance applying above 60%.

These loans are usually a variable rate and offer most of the features and benefits attached to the lender’s standard variable rate loan product. A Low Document Loan can be just as competitive as a full documentation loan, however they provide less hassle as the borrower doesn’t have to provide the lender income documentation.

Credit-Impaired Loans

At some point in the past, a borrower may have experienced difficulty in meeting their monthly commitments due to lack of work, suffered unexpected business losses or had a difference of opinion with a former credit provider. Unfortunately, in these cases the former credit provider may have lodged a payment default (or black mark) on their credit report with a credit recording agency. When applying for finance, a default lodged on a credit report may cause some frustration as a lender may not take an understanding view of the borrower’s explanation surrounding the default.

Credit-Impaired Loans are designed especially to assist a borrower in these circumstances. Usually these loans incur an extra interest rate margin and possibly extra fees and charges.