Property Loans
Are you a first home buyer, a seasoned investor or somewhere in between?
No matter where you sit, our referral partners Home Loan Solutions can find the right loan for you. The dedicated team at
Their service commitment to you is in black and white so you can be kept up to date with each stage of the loan process and we keep it simple, none of that industry jargon that is difficult to comprehend.
Let
Fixed v's Variable interest rates
Professional packages were once only available to certain professionals like doctors and lawyers. Fortunately this is no longer the case. The modern professional packages are now available to people based on their level of borrowings, and in some cases income.
A professional package attracts an annual fee of around $400 per annum; however they offer plenty of advantages. The main advantage of a professional package is that they offer a discount on the standard interest rate; this is usually in the vicinity of 0.5%. There are many other features as well, and these may include a nil application fee, a free credit card, general banking discounts and insurance discounts.
Naturally professional packages vary between lenders, so it is advisable to speak to one of
Low-Doc (short for Low Documentation) home loans are aimed at self employed borrowers who don’t have current or up to date financials. It is also useful for borrowers with complex business structures who will find it more convenient to apply as a low-doc applicant.
As long as the low-doc applicant has sufficient equity in a property they can obtain a loan with comparable interest rates and conditions as traditional borrowers. The loan to value ratio does not exceed 60%. Some lenders will not lend to lo-doc applicants above 60%, however there are still a few lenders who will go to 80% with mortgage insurance.
Since the recent credit squeeze quite a few lenders have tightened their policy on low-doc loans and some are demanding BAS statements. Hopefully this will ease as the market recovers.
Does this sound familiar?
- Credit cards getting out of control?
- Struggling to keep up with your loan repayments?
- Living a day at a time?
- Debt Collectors knocking on your door?
- Borrowing money from family and friends?
- Phone calls from creditors?
You’re not the only one. Let
Debt Consolidation is the easiest and safest way to reduce costly interest payments. By combining all your high interest debts (credit /store cards, personal loans, car loans etc) into a low interest cost loan (your mortgage) you can significantly reduce your monthly commitments each month and free up some extra cash for the good things in life.
As long as you have sufficient equity in your home the team at Home Loan Solutions can help you consolidate all your debts into one easily managed monthly repayment.
No deposit for a home? Try a family guarantee loan. Home Loan Solutions have helped many clients secure homes in this way.
Saving for a deposit can be tough, particularly with the added costs of stamp duty, legal fees, mortgage insurance and other expenses. A family guarantee loan makes it easy for a family member to guarantee part of your home loan – with the added peace of mind that they can set the guaranteed amount.
With a Family Guarantee loan, you may be able to borrow up to the full purchase price of the new property, plus additional funds to cover the costs associated with buying, such as stamp duty, legal costs and other expenses. You must be able to meet repayments for the amount you wish to borrow.
A Family Guarantee loan allows you to avoid paying large Lenders’ Mortgage Insurance costs. You’re also eligible for First Home Owners grant. Some lenders will also allow servicing support, so if you don’t have a deposit or enough income Home Loan Solutions can help (conditions apply).
The family member can be released from the guarantee at any time as long as the house has risen in value enough to enable you to provide at least 20% equity without the pledge or you inject sufficient funds to achieve the same result.
By using a
A Reverse Mortgage is a loan for people aged over 60 who own a property and require funds to do the things they have often dreamt about, but have been unable to afford. By releasing the accumulated equity in the property borrowers can do that renovation they have always longed for, purchase a new car, take that overdue holiday or anything else they wish to do.
These loans do not require any repayments but you can make voluntary repayments if you wish. The loan does not have to be repaid until the home is sold or the last surviving borrower passes away.
You can choose how you would like to receive the loan. It can be a lump sum or as a regular monthly payment to a nominated bank account to help with the ongoing cost of living. Some lenders offer a pre approved “credit limit” so that you can draw down funds as you require them (you only get charged interest on the amount drawn down). You can also have a combination of the above.
The amount of the loan depends on two factors. First, the value of your property and secondly the age of the youngest borrower; the older you are the more you can borrow.
At
Fixed v's Variable interest rates
To fix or not to fix, that is the question!!
A fixed rate loan offers certainty and a sense of comfort if you wish to carefully budget repayments in line with all your other monthly outgoings. Most lenders these days will allow limited extra repayments on a fixed rate loan but you must keep in mind that to break the fixed rate period may incur substantial fees.
Variable rate home loans traditionally provide much more flexibility and offer more options than fixed rates. Of prime importance when taking out a variable rate loan is to make sure that when you do your budget you factor in any interest rate rises that may occur. You should always feel confident that you can meet your repayment obligations should rates increase.
You can hedge your bets by taking out a split on your loan between a variable and a fixed rate. This can be in any proportion you may feel comfortable with. This will give you some comfort with the fixed rate portion and also the flexibility to pay off the variable rate portion ahead of time.
At the end of the day it is up to you. Your decision to fix or go variable or a split will need to take into account your personal financial goals, your income stability and your perceived need for security or flexibility.
Home Loan Solutions offer Mortgage Broking Advice under Finance Brokers License No 2436.