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 »  Home  »  Loan Products
Loan Products

HOME LOANS WITH VARIABLE INTEREST RATES - The most common loan

This is a common offer by banks and has been used by many people to buy their first homes. These loans have repayment periods of up to 30 years and are regularly used by home buyers today.

Don't be caught by start-up lures!
Often lending institutions will offer a discounted start-up period with lower interest rates to motivate you to choose the loan. The benefits of this discount (or honeymoon period) are short-lived as the remaining years on your loan are charged at a standard variable rate.

Advantages

home loans, finance at negotiator Discipline - regular monthly, fortnightly or weekly repayments help you with budgeting.
home loans, finance at negotiator Redraw - most institutions will allow you (subject to terms and conditions) to withdraw additional repayments you have made over and above the minimum repayment.
home loans, finance at negotiator Offset - it may have the ability to offset credit balances held in other accounts at the same institution against the principal of the loan.
home loans, finance at negotiator Extra repayments - these are usually allowed at any time.

Disadvantages

home loans, finance at negotiator The interest rate is variable (apart from any start-up period) and the loan will be subject to interest rate fluctuations.
home loans, finance at negotiator The interest rate is always higher than Low Frills Home Loan.


BASIC LOANS - Lower Interest Rates + No Extras

One of the most popular loans, the Low Frills Loan has the lowest
running costs - and less extras - so you pay a lower interest rate. Before you choose this loan, make sure that you don't need any extras (such as fee free credit cards and accounts etc) and compare the costs of getting them separately.

Advantages

home loans, finance at negotiator Discipline - regular repayments help you with budgeting.
home loans, finance at negotiator The interest rate is always lower than traditional loans.
home loans, finance at negotiator Extra repayments are usually allowed.


Disadvantages

home loans, finance at negotiator Money held in normal savings accounts with the same institution will not reduce your home loan rates.
home loans, finance at negotiator The interest rate is variable and you are vulnerable to interest rate fluctuation.
home loans, finance at negotiator Other facilities such as loan redraw may not be available.


FIXED TERM HOME LOAN with Fixed Interest Rate

This loan has a set interest rate for a period of time. This means you know exactly what your repayments will be for your fixed rate term. If you are unsure about whether to take a fixed or variable rate - you should consider a Split Loan.

Advantages

home loans, finance at negotiator Fixing the interest rate for a period of time insures against future rate rises.
home loans, finance at negotiator It is easy to budget for the same regular repayment each month.

Disadvantages

home loans, finance at negotiator If interest rates fall you may pay more for your loan than borrowers on variable rates.
home loans, finance at negotiator Most lending institutions penalise you for making additional repayments.
home loans, finance at negotiator You may be penalised if you pay off your home loan before the due date.


SPLIT LOANS - Fixed & Variable Interest Rate

This loan is a way of hedging your bets. If you are unsure as to whether interest rates are going up or down, you can choose a Split Rate Loan. With this type of loan, you nominate how much of the loan you would like to fix and how much you would like to put on a variable rate. The Split Loan is a cautious way of borrowing for your home.

Advantages

home loans, finance at negotiator Having part of your loan at a fixed interest rate protects you against interest rate rises.
home loans, finance at negotiator Leaving part of your loan on variable interest rate leaves you less vulnerable if rates reduce.
home loans, finance at negotiator Additional payments are allowed on the variable portion of the loan.

Disadvantages

home loans, finance at negotiator You may not benefit greatly from any interest rate fluctuations.
home loans, finance at negotiator You may be charged set-up fees, account fees and discharge fees on both the fixed portion and the variable
portion.
home loans, finance at negotiator You may be penalised for making higher repayments on the fixed portion.
home loans, finance at negotiator You may be penalised if you pay off your loan before the due date on the fixed portion.


BRIDGING HOME LOANS - Buy Before You Sell

This can simplify the transition between properties. If your home is for sale - and you find a property to buy, or wish to build - the lender advances the money so you can purchase your new home.

Depending on the equity in your current home, you may be able to include all the fees too. The interest charged to your loan can be paid by you or capitalised (added to the loan amount). When your original property is sold, the proceeds are deposited to the new loan. The amount owing becomes your end loan and normal repayments commence.

Advantages

home loans, finance at negotiator You can buy or build your new home before you sell your existing home.
home loans, finance at negotiator You can avoid moving into a rental property and move directly into your new home.

Disadvantages

home loans, finance at negotiator Interest is charged on the full amount of the new loan.
home loans, finance at negotiator If you don't sell your existing home quickly, the interest bill can really add up.
home loans, finance at negotiator It may force you into selling your existing home at a price lower than you want to.
home loans, finance at negotiator You must have sufficient equity in your exisitng property to support the purchase of both.


PROFESSIONAL HOME LOAN PACKAGES

A professional package offers you interest rate discounts depending on the loan size, fee free transaction accounts, and credit cards free of charge and a range of other special offers.

It is a misnomer that the professional package is just for professionals! This is not the case. Infact, the only requirement you need to access these loans is to meet the lender's minimum loan amount (which can start at $100,000)

Advantages

home loans, finance at negotiator Interest rate discounts on the standard variable rate and some line of credit products.
home loans, finance at negotiator You may be eligible for other benefits such as fee free transaction accounts and the annual fee waived on some
credit cards.
home loans, finance at negotiator Some lenders also offer no establishment fees and no ongoing monthly fees on your loans.

Disadvantages

home loans, finance at negotiator An annual fee applies to this package.


LO DOC HOME LOANS for the Self-Employed

Today, more people are self-employed or employed on contract, so their income patterns are not as regular as PAYG earners.

With a Lo Doc Loan you can "self-certify" your income, which avoids the trouble of asking your accountant to provide up-to-date financials every time you wish to borrow money.

You pay a little bit more in interest and fees - but it saves you a lot of time and stress. Some lenders also offer Lo Doc Loans to investors and PAYG earners too.

Advantages

home loans, finance at negotiator There is no need to provide financials to the lender.
home loans, finance at negotiator You receive faster access to your loan and greater flexibility.
home loans, finance at negotiator Non-traditional and irregular income sources are considered.

Disadvantages

home loans, finance at negotiator You pay higher interest rates and fees.
home loans, finance at negotiator You may be at risk of over committing yourself if your income
varies.


NON CONFORMING LOANS - Adverse Credit History?

If you have experienced financial problems in the past, this is the loan to help you re-build your adverse credit rating and obtain a mortgage. Non-conforming lenders are very flexible - even if you have been discharged from bankruptcy or just have an adverse credit history, this type of product will make it easier for you to secure your wanted mortgage.

Advantages

home loans, finance at negotiator You will get a fresh start and the chance to re-build your credit rating.
home loans, finance at negotiator Non judgemental lending rules with flexibility.

Disadvantages

home loans, finance at negotiator You'll pay higher interest rates and fees.
home loans, finance at negotiator You will require a larger deposit than normal.


HOME LOANS WITH ACCESSIBLE LINE OF CREDIT

With this type of loan, you can access funds up to your approved limit at any time. Your salary can be paid directly into the loan account and you can access the balance of the loan at any time - like a credit card. You can use these funds to purchase shares, go on holiday, buy a new car, start home renovations or so much more!
You should thoroughly check all the facts before committing to this type of loan.

Advantages

home loans, finance at negotiator Money is easily accessed by cheque or ATM card linked to this loan. You can use it for living or other investments.
home loans, finance at negotiator By depositing your salary and savings into this loan you reduce the interest charge.
home loans, finance at negotiator Extra repayments are allowed at any time.
home loans, finance at negotiator A mortgage reduction programme can be helpful in managing this type of loan.


Disadvantages

home loans, finance at negotiator Ease of withdrawal means if you are undisciplined this loan can get out of control.
home loans, finance at negotiator The interest rate is usually higher than Traditional Variable Rate and Low Frills Loans.


REVERSE MORTGAGE LOANS for over 60's

As governments put more responsibility on individuals to fund their own retirements, many people find that their super and other income sources such as the pension don't provide enough money to support the lifestyle they want.

An obvious option is to sell their biggest asset - their home, but that too may be part of the way they want to live.

This is where a reverse mortgage may provide the answer. A reverse mortgage is available to residential property owners over 60. It allows you to release funds using the equity in your home. You can use these funds as an income stream or for personal lifestyles needs like travel, home improvements etc.

Like a traditional mortgage there's interest to pay, but you don't have to make monthly repayments. The interest is capitalised, which means it's added to the amount of the loan.

When your home is eventually sold you'll pay back the amount of the loan (the cash you received) plus the interest owing.

There are a range of reverse mortgage options available. Which one is the most appropriate for you depends on your individual circumstances and other factors.