Buying a home couldn’t be easier with the help of parents, family or friends. Young people can now purchase a property using the equity from another person’s property. This means that the full purchase price can be borrowed without the need for a deposit or Lenders Mortgage Insurance (LMI), and you retain eligibility for the First Home Owners Grant (FHOG).
Lo Doc/No Doc
Self employed borrowers can now purchase property without submitting their tax returns and business financials. This has been a huge advantage for the self-employed who often don’t have up-to-date financials. They need only to declare their income without requiring evidence.
You can now purchase a home without a deposit. There are lenders who will lend up to 100%, enabling a purchaser to borrow the full purchase price. In some cases a lender may allow a purchaser to borrow up to 105% which allows for the purchaser to borrow not only the full purchase price, but also the stamp duty and other associated fees.
These loans are for borrowers with a poor credit rating (CRAA).There are specialized lenders who will lend to purchasers who cannot otherwise be approved through mainstream lending.
If you are 65 or over and have equity in your home, but have limited cashflow, and you wish to improve your lifestyle, this may be the loan for you. You can now borrow against the equity in your home and obtain the funds either as a lump sum payment or as an income at regular intervals.
These loans are designed for borrowers who are looking to build a home through a licenced builder. The builder is paid by the bank, through progressive draws, at the various stages of the building process. The interest (usually interest only), will be monthly and will be based on the amount outstanding at the time.
“Buy first sell later”. Now there are products which allow you to purchase or build your home before you sell your existing property. The great thing about this loan is that you only have to move house once! The other advantage is that you don’t have to sign “subject to finance”, giving you much more bargaining power when negotiating with the real estate agent.
These loans allow you the advantage of splitting the loan into two or more sub accounts, where you can have part on a variable rate and part on a fixed rate. This gives you some protection against interest rate rises while still having the flexibility of a variable rate.
Professional Rate Discounts
Most borrowers are now eligible for discounts on the standard variable rates (up to 0.7%), depending on the level of borrowings. These discounts can amount to significant reductions in loan repayments often representing savings of hundreds of dollars.
Fixed Rate Loans
A number of fixed rate options are available usually from 1 to 5 years. This means that your repayment will be constant for the duration of the fixed period. Only some lenders will allow additional repayments during the fixed rate period without penalty.
Variable Rate Loans
These rates will fluctuate and will increase or decrease in accordance with the Reserve Bank rate movements.
Basic Variable Rate Loans
Often referred to as “no frills” loans, the rates will fluctuate according to increases or decreases to the Reserve Bank rate. However the rates are usually set at a margin well below the standard variable rate and that margin is maintained as rates increase or decrease.
Line of Credit Loans
These loans are very flexible and generally work best when the whole salary is credited to the account. The advantage is that this type of loan is interest only, and the interest is payable on the outstanding balance. Therefore you are only paying interest on the amount that you have drawn down. These loans do require careful budgeting to ensure that the balance does reduce over a period of time
Also known as “Introductory Rate loans” these loans usually offer a discount on the interest rate for the first year only and then revert to the standard variable rate of the day after the expiry of the first 12 months
This type of facility requires a Principal and Interest payment however salary is credited to the offset account which immediately “offsets” the interest payable. The more money credited to the account the more beneficial in reducing the interest due for that month.
You can now use a deposit bond when you are purchasing a property. The advantage is that you don’t need to use your own money. Where this is particularly beneficial is where you purchase at auction. Often you will need to provide up to 10% deposit at the fall of the hammer, so this is a handy document to have prior to bidding.
Owner Occupied Property Loans
Investment Property Loans
Refinancing Existing Loans
First Home Owner Loans
Leasing- Motor Vehicle and Equipment