Standard Variable Rate Loans
Standard Variable Rate loans are suitable for borrowers who are looking for a flexible and competitvely priced loan, with all the features but without being tied up to a fixed interest rate contract.
Should the interest rate fluctuates during the life of the loan, most Standard Variable Rate loans have the option to switch to another interest rate type at any time.
Standard Variable Rate loans are designed to assist with the purchase of a new home or investment property, renovations, holidays, upgrading your car or most other personal needs.
Professional packages are available to borrowers who meet certain lending, balance or employment criteria. The costs to participate are generally around $400 per annum as a trade off for a reduced or waived fees, lower loan interest rates or increased deposit interest rates.
Base Variable Rate Loans
Base Variable Rate rate loans are suitable for borrowers who are not looking for the ‘bells and whistles’ features normally associated with a bank's standard variable loans.
Base Variable Rate rate loans will usually have a fluctuating, variable interest rate and as such are best suited for a client who is rate sensitive and looking for a basic, simple, low cost loan facility, without being tied up on a fixed term contract.
Equity loans are often referred to as revolving lines of credit and they differ from a traditional loan because they are an interest only facility.
Equity loans allow a borrower to gain access to equity without the need to apply to a lender for a new loan on each occasion. This can save time, expenses & the inconvenience of having to provide the bank with up to date financial, salary and personal information. Equity loans are a very flexible product and are particularly suitable to an investor who requires quick access to funds.
Discounted Rate Loans
A Discounted Rate loan (or Honeymoon loan) is where the interest rate is set at predetermined level below the standard variable rate for an initial set period, generally up to 2 years.
Discounted Rate loans are particularly attractive to first home buyers and those who are looking to keep their repayments to a minimum in the early stages of a loan.
Fixed Rate Loans
A Fixed Rate loan is where the interest rate is fixed for an agreed time, meaning that your interest rate will not increase, even if there is an interest rate rise. Alternatively, it also means that if the interest rates drop you will remain locked in at the higher nominated rate for the fixed term of the loan.
Fixed Rate loans allow you to protect your self against possible future interest rate rises and gives you the ability to manage your loan repayments over a specified term. Fixed rate terms can be nominated for periods upwards of 6 months but are usually for between 1 year and 5 years.
95% Home Loans
95% loans are suitable for those who have proven savings over at least a six month period, but do not have a large amount saved. 95% loans are designed to assist people who are looking to borrow as much money as possible against the valuation of the security property.
Usually these loans can be used for the purchase of a new home, first home, renovations, debt consolidation or for personal use.
No Deposit Home Loans
No Deposit loans are available to borrowers who have existing personal or investment properties to offer as security, but do not have sufficient ready cash to meet the full cost of a new property purchase.
An Offset account is a transaction account attached to a home loan. It acts like a normal type of savings account where you can make deposits and withdrawals and generally make BPAY payments.
The balance of an offset account is taken away from the principal remaining on the loan for interest calculation. Offset accounts can help you to reduce the interest charged on your loan, which can lead to repaying your home loan sooner.
Some financial institutions can provide finance to assist you purchase land with the expectation that the land will be improved within a set time frame.
Most lenders will lend up to 90% of the valuation of the land, although some will lend up to 95%.
Many people will look to upgrade or downsize their residence at some stage during their lifetime. Relocation loans are an option where a borrower already has an existing loan on a property, the property has been sold, and the borrower has purchased a new property.
To qualify, lenders are generally looking for simultaneous settlements, or settlements within a very short period of time.
Seniors Loans (REVERSE MORTGAGE LOANS)
Elderly borrowers, often those who have reached the age of retirement, are in receipt of a pension of some type, and have built up equity in their existing property may qualify for Seniors loans.
These complex loans can be set up without the need for repayments and in single or joint names, enabling the the loan to be repaid on sale of the security property or on death of the last borrower. They are particularly helpful to borrowers who are looking to downsize their property or who require access to funds to meet current or future expenses of themselves or family members.
A rural loan is for a property situated outside the metropolitan area, generally consisting of a residence where no income is derived from the property.
Not all lenders are keen to lend against rural properties, and the majority will place restrictions on the acreage or proposed land use of the property.
Terms loans are where the repayment of the loan is amortised over a specific numbers of years.
This form of financing is available to assist in the funding of business growth or expansion, consolidation of business debts, capital and equipment purchases or any other worthwhile business purpose.
A term loan facility offers the flexibility of fixed or variable interest rates, with a choice of repayment options to cater for your businesses cash flow requirements.
Line Of Credit
Line of Credit facilities for businesses can be used in a similar manner to a traditional Overdraft. They enable access to equity within a property to assist with investing and providing working capital / funds to assist run a business.
A Line of Credit facility can be secured by residential or non-specialised commercial property and can help save your business time and money by providing an effective way to manage your business expenses and payments.
An Overdraft Facility is a flexible line of credit, which is designed to fund seasonal or unexpected expenses up to a limit. Overdrafts are a particularly good facility as they can assist a business to help manage cash flow.
Factoring (or Debtor Financing) is a flexible form of lending where funds are advanced against moneys owed to you by your clients.
If you compare Factoring to a traditional overdraft facility, the overdraft facility is limited to the amount of security available. Factoring however can increase along with your business growth. Because of this flexibility, Factoring is an increasingly popular way to raise finance, sometimes without the need to provide bricks and mortar security.
A Commercial Bill facility is an ideal form of lending to assist take care of your short and long term financial needs. A Bill is essentially a promise to pay the bank a specified amount on a specific future date. A Bill can therefore help you manage cash flow and can provide interest rate protection.
Mezzanine Finance is a form of financing available on both residential and commercial properties and is used where a borrower is looking to raise additional finance against a commercial property that is beyond a bank’s recognised lending levels.
Lease & Hire Purchase
A Lease is a rental agreement in which a lender owns the equipment, and you indemnify the lender for an agreed residual value at the end of the lease term.
It is important to note that there is no option for you to purchase the equipment during or at the end of the agreement. Most lenders will, however, consider an offer from you to purchase the equipment for the residual value at the end of the term.
A Chattel Mortgage is a loan agreement to borrow funds in order to purchase equipment. Security for the loan is a mortgage over the equipment financed.
A chattel mortgage can provide you with a substantial tax benefit relating to GST and help maximise your cash flow.
The benefit of a Chattel Mortgage is that ownership of the goods remains with you and generally the interest component and the depreciation are tax deductible provided you use the equipment to generate assessable income.
Self-managed super fund (SMSF) loans are residential investment loans or commercial property loans offered for Australians who wish to invest their superannuation in property.
Borrowing or gearing your super into property must be done under very strict borrowing conditions called a 'limited recourse borrowing arrangement'. A limited recourse borrowing arrangement can only be used to purchase a single asset, for example a residential or commercial property.
A Family Guarantee can give you a head start by making it easier for you to get into your home faster with the help from family members or others willing to assist.
Family Guarantees allows another person, generally a family member to use the equity in their home as additional security for a portion of your loan amount. This means you may be able to buy a property sooner, avoid paying Insurance premiums and maximise the amount you can borrow.