Home Loan products available

standard variable rate

Benefits: Can pay weekly, fortnightly or monthly. Extra repayments and redraw usually available. Can be combined with loan types.
Disadvantages: Interest rate often not the most competitive.

Introductory Discount rate

Benefits: Lower rate for initial period (6 months, 1 yr, 2 yrs) then usually reverts to standard variable rate.
Disadvantages: Penalties usually apply if standard variable not taken after initial period. Can be more expensive than other loans.

basic / no frills

Benefits: Low interest rate. Extra repayments and redraw usually available.
Disadvantages: No offset account. Fee's can be expensive.

Offset account

Benefits: Savings or transaction account balance offset loan balance, giving possible interest savings.
Disadvantages: Not all offset accounts are equal. Some offset accounts not “100%” and some have fee's

all in one

Benefits: Similar to standard variable rate loan, but with access (via ATM/EFTPOS, cheque book). All income paid into loan and all expenses paid out of it, often resulting in dramatic interest / time savings.
Disadvantages: Similar to standard variable rate loan, but with access (via ATM/EFTPOS, cheque book). All income paid into loan and all expenses paid out of it, often resulting in dramatic interest / time savings.

line of credit (loc)

Benefits: Similar to All-in-One loan, but revolving credit facility (like a credit card, with a credit limit).
Disadvantages: Interest only repayments generally required, so greater discipline required to ensure loan is paid off (unless investor).

fixed rate loan

Benefits: Interest rate is fixed for a period of 6 months – 10 years. Assists with budgeting, giving peace of mind. Some lenders allow additional repayments without penalty.
Disadvantages: If variable interest rates fall, this may become relatively expensive. Penalties may apply if loan paid in full during fixed rate term (break costs).

combination loans

Benefits: Part of loan at variable rate, part at fixed rate (or other combinations). ‘Hedging your bets’.
Disadvantages: If not carefully structured, may be unnecessarily expensive.

bridging loan

Benefits: Gives flexibility when moving from one home to the other (without having to wait for sale of current property). No longer prohibitively expensive.
Disadvantages: Stronger financial position may be required to obtain this type of loan (because of possibility of having two loans running concurrently).

credit impaired

Benefits: Borrowers with a history of late repayments, loan default or bankruptcy are acceptable.
Disadvantages: Higher interest rate. Smaller LVR's. No LMI.

non resident

Benefits: Australian citizens living overseas or non-Australian residents buying investment property in Australia.
Disadvantages: Need FIRB permission. Must be NEW residential premises. Lower LVR. No LMI.

security impaired

Benefits:Applicants can use non-standard security to secure their loan. eg. company title or serviced apartments.
Disadvantages: Low LVR's No LMI. Strong employment and income history.

minimum documentation loan

Benefits: Limited income information available. eg. Self-Employed.
Disadvantages: Interest rate is higher. LVR is lower. LMI for LVR >60%. Proving you can afford the loan maybe difficult.

If you have any other questions please phone us on 03 9832 0802 or complete the form below.