Considering all loan options is essential when purchasing property, be it your primary residence or an investment property. Our home loans team can help you to determine which finance options are best suited to your specific needs. We have access to all home loan lenders and are perfectly positioned to negotiate on your behalf. Our teams experience and knowledge will be invaluable in structuring your loan.
Types of Loans
There are various types of loans, all offering different rates and features. Our role is to provide you with comparisons of various loan options from a panel of lenders and to assist you in choosing the right loan for your circumstances.
Fixed Rate Loans
These loans are set at a fixed rate for a specified period - usually one to five years. Repayments do not rise or fall with interest fluctuations throughout the specified period. At the end of the term you can lock in another fixed rate, switch to variable, or consider a split loan option. These loans may have limited features and lack the flexibility of variable loans. There may be early exit fees and limited ability to make extra payments.
Standard Variable Rate Loans
The standard variable rate loan offers more flexibility than a fixed rate loan. A standard variable rate loan will often have more features than the 'basic' variable option, so the rate may be slightly higher. The extra options (for example, a redraw facility, the option to split between fixed and variable, extra repayments, and portability) should be considered when choosing a variable loan. Repayments will vary as interest rates fluctuate.
Professional Home Loan Packages
These loans are offered to provide an all-in-one loan package. They offer interest rate and fee savings on your home loan, credit card and transaction accounts, and some lenders also waive the annual fees for your credit cards. Professional packages can also offer flexibility, with some banks willing to waive product switching fees when changing from a variable to a fixed rate or converting a principal and interest type loan to an interest only loan.
With changing work practices more and more people are self-employed, and if you are self-employed and searching for a loan it is not always easy. Taxable income declared by self-employed people is often reduced as accountants look for as many tax deductions as they can achieve. Self-employed people may also have irregular income.
Another problem is the sheer volume of paperwork the self-employed applicant must present to meet evidence requirements. They may need to provide a copy of their passbook or all statements of savings accounts held with other banks or financial institutions over the last three to six months, tax agent income statements, income tax returns, profit and loss statements certified by a registered accountant for the past two years, memorandum and articles of association and copy of trust deed, copies of personal income tax returns, and their most recent financial year's assessment notice.
The good news is that a number of innovative lenders have emerged in recent years and these take a simpler approach than has been taken by lenders in the past. Take advantage of our comprehensive service while we explore and explain all loan options available to you.
Low Doc Loans - Self Declared Income
Contractors and the self-employed do not always have the same financial structure or income patterns as PAYG applicants. This means you may need the flexibility and convenience of a Low-Doc home loan. The greatest benefit to these types of loans is that they provide non-traditional income earners with an irregular inflow of money the opportunity to get into the home ownership market or to take out a loan to upgrade. You are able to self-certify income for the loan approval application rather than providing full financial details to the lender. This will give you faster access to your loan plus greater flexibility without needing to engage your accountant.
How Can We Assist?
Our home loans team is positioned to assist you in achieving your goals and we are available to discuss your objectives at a time that is convenient to you. Contact us in the first instance to schedule in a preliminary discussion.