With a choice of 40 lenders offering over 600 different home loan and finance products, we will find the right loan for your current and future needs. Contact Angelo Cirillo at our Griffith office to discuss how our services can benefit you.
Basic Home Loan The most common type of finance, the Basic Home Loan is suitable for Owner Occupied or Investment properties. Basic Home Loan's offer a variable interest rate, that rises and falls with the market, however is usually below the standard variable rate. Basic Home Loans often have restrictions on their features, or don't offer the same level of flexibility as a Standard Variable Product. Nonetheless a Basic Home Loan is a great way of taking advantage of a lower interest rate without having to lock into a fixed interest rate over a specific term. Bridging Finance Bridging Loan Products, sometimes referred to as Relocation Loans, are used by those borrowers with an existing property or home loan. Perfect if you want to purchase your new home before selling your existing property. Bridging Finance provides enough funds to cover the full purchase price and associated costs of your new property purchase. However, the lender will take both your new property and your current property as security for the loan. If you have an existing mortgage over your current home the lender will also advance funds to take over that loan and pay out the existing lender. Bridging Finance generally carries a term of around six to twelve months (depending on the lender) from the date of settlement of the new property and lenders will require an end to debt before considering. Fixed Rate Home Loan A Fixed Rate Home Loan is a loan which secures an interest rate for a fixed period of time. Fixed rates appeal to borrowers who prefer the security of a set repayment, without the worry of a variable interest rate. Fixed Rate Home Loans often offer lower levels of flexibility as a trade off for the stability of a guaranteed rate. Honeymoon / Discount Introduction 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. Low Doc Home Loan Low Doc loans are relatively new to the market. They are a flexible finance solution for self employed people who have an income and assets but may not have all the usual paperwork such as financial statements or tax returns. With a Low Doc loan you get all the features of a Standard Variable Product such as, access to redraw, flexible repayment options, ability to make lump sum repayments and even mortgage minimization through an offset account. To be eligible for this product you will need a clear credit history and sufficient equity or savings to complete the purchase. You will also need to contribute around 20% - 30% of the value of the property. 100% Finance or No Deposit Home Loan A No deposit home loan allows you to borrow up to 100% of the purchase price whilst still providing a full range of home loan features. These products generally attract a higher rate of interest due to the increased risk from the lenders perspective. No Deposit loans have strict entry requirements such as postcode restrictions and employment history. Only applicants with a clear credit history will be considered for a no-deposit loan. Home Loan Offset A home loan with a linked offset account, gives you the flexibility of using your income and savings to reduce the balance of your home loan, thus saving you interest. The best offset products allow 100% of your savings to be used to offset the balance of your home loan. Accordingly, the balance of your offset account is deducted from your loan amount, before calculating interest. Home Loans with an Offset account are best suited to borrowers who have excess funds available to them but also require the flexibility to use them at any given time. Offset accounts can be used in the same way as a Line of Credit as long as the lender calculates interest on a daily basis. While an attractive proposition, it is important to bear in mind that Home Loans with an Offset account are at times priced with a slightly higher interest rate. Professional Home Loan Packages Most banks offer Home Loan Packages aimed at those who fall into a high income bracket or for members of professional associations. There are generally some qualifiers in place such as; minimum household income, minimum loan amount or alternatively membership of a professional body. These qualifiers are intended to restrict the usage of these products. Professional Home Loan Packages also offer attractive discounts to the Standard Variable Interest Rate as well as access to Gold Credit Cards, reduced insurance premiums and other benefits such as discounted application fees. Should you fall into this category, we can tell you which bank, and for which Professional Home Loan Package, you qualify for. Standard Variable Rate Loan Standard Variable Rate loans 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. Reverse Mortgage A reverse mortgage is a loan facility designed for persons who generally have retired or are in the process of retiring and have a limited income. The loan utilises the equity in their home to assist in their personal circumstances.
These loans have a variety of repayments methods or an option to make no repayments at all. A no repayments option means that the interest on the loan is added back onto the outstanding loan balance (capitalisation) with ultimately the Lender recovering the outstanding loan from the estate.
The loan funds can be used for a wide number of reasons, (subject to Lender acceptance) such as:-
• Repairs to the family home
• Medical related matters
• Holiday
• Motor vehicle
• Investment
• Financial Planner recommendations to assist in boosting overall income position
• Gift, and
• Funeral arrangementsThe loan can generally be drawn down as a lump sum and/or in instalments. The majority of lenders also have a no negative equity guarantee. What this means is that the loan will never exceed the value of the property used as security.
There are lenders who will fix the interest on the facility for the life of the loan meaning that the home owner is protected from increasing interest rates.
There are certain restrictions to reverse mortgages; the most notable is the maximum loan amount. This can vary depending on the applicant but will generally be somewhere between 15 and 45%. It is also recommended that before proceeding with a reverse mortgage that you check the impact this may have on any government income support you (or your loved one) may be currently receiving. This is done by contacting Centrelink Financial Information Service on 13 23 00.
Griffith Office
02 6964 1933
Hillston Office
02 6967 2523
Hay Office
02 6993 1055
