Line Of Credit
Popular for those expecting to need funds for investing or renovating – draw down the money as you need it. With this type of home loan, you usually don’t have to make repayments until the line of credit is full drawn.
Interest is calculated on the daily loan balance and provided this and the monthly fees accrued do not exceed the line of credit, the interest can be added to the loan. Most accounts of this kind also come with the added convenience of credit access via debit card or cheque book..
An offset account is a savings account that is attached to your home loan, with the balance used to offset the interest charged on your loan. Some lenders also provide a free redraw and additional repayment facility on their variable rate loans, which have the same benefits as an offset account.
Bridging loans are used to manage the transition between buying and selling properties. These are used by people who buy a new home before selling their existing home or who are building a new home. Bridging loans can combine into a single loan. You usually do not need to make any repayments for six months (12 months if you are building your new home), or until your existing property is sold.
If you’re looking for a better rate and loan product to suit your needs, we take the time to understand your personal situation and tailor the best refinancing home loan to your situation. We’ll find you the best rates, and make it easy to transition from your current home loan to the new lender we are experts at co-ordinating debt consolidation, loan switching and restructuring to reduce your monthly commitments.
Buying an investment property is less about emotion, and more about potential for capital growth, rental returns, and profitability. To help you gain the most from your investment property, we have access to a range of flexible and efficient investment home loans specifically tailored to suit your investment needs.
A rate that includes upfront and ongoing fees as well as the advertised interest rate. It will assist you in identifying the true cost of a loan.
Lenders Mortgage Insurance
If you borrow more than 80% of the value of the property you’re buying, you will need to pay Lenders Mortgage Insurance (LMI). This insures your lender (not you, the borrower) against non-payment or default. By protecting your lender against default, LMI allows you to borrow with lower deposits. Your lender will organise LMI on your behalf, so it’s not something you need to shop around for.
The LMI premium you can expect to pay will be based on the size of your home loan and the purchase price. One of the best ways to reduce the cost of LMI is to save a larger deposit. However, this is not always possible, and to make the premiums more manageable some lenders let you add LMI to the value of your home loan. This is called ‘capitalising’ the expense, and it lets you pay the LMI bill gradually rather than adding it to your other upfront expenses.
With a Split Loan you can fix part of your home loan and leave the rest as variable. Splitting your loan like this can be good because it offers both security and flexibility
Loan To Value Ratio (LVR)
The LVR refers to the size of your home loan expressed as a percentage of your property’s value. For example, if you borrow $300,000 to fund a property worth $375,000, the loan is said to have an LVR of 80% ($300,000 is 80% of $375,000).
Non-Genuine Savings Loans
These loans are designed for those with less equity or deposit, and who may not have genuine savings to contribute.
Low Deposit Home Loans
Your home loan deposit is usually 20% of the purchase price. But to help you get into your new home sooner, many lenders now approve loans with lower deposits.
Self-Managed Super Fund Loans
Allows established SMSFs to borrow funds for the purchase or refinance of Commercial and Residential investment properties.