Loan Types

 Your most common type of Home Loan. This is where your interest rate can fluctuate up or down depending on where the market goes.

A change in interest rates will impact on your repayments. Great thing about the Variable Rate is there is no cap on how much you pay extra into the loan. Extra repayments means a reduced balance and lower interest charges. This will result in more of your repayments going towards the principal and less towards the interest. Variable Loans also has the Redraw feature which allows you to access the extra repayments you have made above the minimum.

Variable Loans also comes with Offset accounts which is an additional account linked to the Home Loan that allows you to Offset your interest charges with the money you deposit into the Offset account. Variable Rates are recommended for the borrowers planning to make extra repayments towards the loan and want flexibility.

This is the interest rate where you can ‘set and forget’. This is where you lock in a particular interest rate for a certain period of time.

The minimum term is 1 Year or if you’re after something longer, you can fix it anywhere up to 5 Years or even longer. The rates do differ depending on how long you fix it for. The great advantage of fixing is the repayments are fixed as well so you know exactly what your repayments are for the duration of the fixed term. You don’t have to always stress of the rates going up so gives you more time to focus on more important things in life instead of always having to worry about your mortgage.

Most banks do NOT offer Offset accounts on Fixed Rates and will usually apply a cap on how much you can pay extra. There are risks that come with fixing your interest rate which we are happy to discuss depending on your circumstances and scenario.

Think of this product as a very large Credit Card. The bank will apply a limit on this line of credit based on your borrowing power.

This product allows you to pay it down and withdraw funds at any given time as long as you don’t exceed the limit you’ve been given. Interest is charged based on the outstanding balance every month.

This product is usually provided as a Variable Rate, however, we can find you banks that offer Fixed Rates on line of credits that are very competitive. Whilst this product sounds appealing it does come with high risks which we are happy to discuss depending on your circumstances and scenario.

These are loans for the Self Employed. Traditionally, if you are Self Employed applying for a Home Loan, banks will ask for your last 2 years tax returns.

Your borrowing power is determined from the income your business has made in the last 2 years as part of their assessment of your application.

Based on my experience, most Self Employed customers have difficulties proving how much their business truly earns on their tax returns and can have a hard time getting a loan. This is why Low Doc Loans work beautifully! You are NOT required to provide your tax returns whatsoever.

Banks are a little more lenient on their assessment and getting loan is in reach through this product. Talk to us and let us show you how this works.