Loan Products/Features

Variable Rate Loan

Variable Rate loans are available through all of our panel of lenders. Variable rates are based on the official Reserve Bank rate and generally won't change unless the Reserve Bank rate changes. With a variable rate loan you have the option of offsetting your mortgage, making additional repayments and also allows you access to redraw facilities. For the majority of people the idea is to pay off your loan as soon as possible and be debt free. By simply making extra repayments on a weekly or fortnightly basis you will find that you may cut years off your loan term and save thousands of dollars in interest.

Basic Variable Rate

This is your basic No Frills loan. This rate is generally lower than the standard variable rate but may not have all of the features of the standard variable rate product. Redraw may still be available but there may be a fee involved for the use of the feature. If you know that you don't require any of the features offered with the variable rate loan then you will benefit from the lower interest rate with this product.

Introductory or Honeymoon Rate

Introductory or Honeymoon rates are a reduced rate that are generally offered for the first year of your loan. They can be either fixed or variable and will usually revert to the current variable rate at the end of the first year.

Fixed Rate Loans

Fixed Rate Loans offer you the opportunity to fix or lock in a particular rate. Rates are normally fixed for a period of 1 to 5 years, sometimes even up to 10 years. Fixed rates are normally higher that the standard variable rate depending on the term you chose to fix your loan for. The advantage of a fixed rate home loan is knowing exactly what your repayments are going to be for that term of your loan. Loan features like redraw, portability and mortgage offset are generally not allowed during the fixed period of your loan. You may also find that additional repayments are limited.

Line of Credit Accounts

Line of Credit Accounts are designed to repay your loan as quickly as possible. By having all of your income pooled into your Line of Credit account you reduce the balance of your loan and that, in turn, reduces the amount of interest you pay. The interest is calculated daily on your current loan balance - not limit - and is charged monthly. So the more money you have pooled in your Line of Credit account, the less interest you pay. Any funds that are credited to your Line of Credit account show as funds available and can be redrawn at any time. Generally the idea is to live off your credit card each month so that you get the full benefit of the loan. At the end of each month you sweep your credit card and start again. Interest rates on a Line of Credit account are usually slightly higher that the standard variable rate, but have much more flexibility. You also have the choice of making principle and interest repayments or interest only repayments. For those who can stick to a budget - then this loan is designed for you.

Lo Doc or No Doc Loans

Lo Doc or No Doc Loans are specifically designed for those who are Self Employed. Full Doc Loans require a minimum of two years individual and company tax returns, which for different reasons can be hard to produce. The alternative to this is a Lo Doc or No Doc loan. By simply signing a Lo Doc Declaration Form you can state the income that you earn and this is used in the servicing of your loan. This can also be effective for PAYG employees who have a hard time substantiating their income. For example, if your income is commission based or you work a lot of overtime - then this may be an easier option for you. The Lo Doc feature is available on most loan types - but you may find that the interest rate on a Lo Doc loan may be higher than the standard rate for that product.

Professional Packages

Professional Packages are available to almost anyone and offer a discounted rate if you qualify. To qualify for a professional package you may be required to borrow a minimum loan amount or earn a certain income or be from a particular Profession. The majority of Professional Packages on offer have a reduced variable rate and is subject to change depending on the current Reserve Bank rate.

Interest Only Repayments

Interest Only Repayments are available on the majority of the above loan types. The idea of interest only repayments is that you don't reduce the principle balance of your loan. You only pay the accrued interest each month. Interest only repayments are generally used for investment loans where the repayments are tax deductible. Interest only terms generally range from 1 - 10 years.

Redraw

A redraw facility allows you to draw back on your available funds. When your repayments are due and you pay over the minimum amount payable your available funds accumulate and you are then able to redraw those funds when required in a lump sum. For example, if your minimum monthly repayment is $1500 and you pay $ 1600 for a period of six months, then you would have accumulated $600 that you would be able to redraw. If this facility is used correctly it can save you interest on your loan account. There may also be a fee charged to redraw on some loan types.

Split Loans

If you can't decide on the type of loan you want - then by splitting your loan you can get the best of both worlds. Say you want a fixed rate loan so you can have the stability of fixed repayments, but you have heard that a variable rate loan is the way to go. The answer is to split your loan so that a portion is fixed and the other portion is variable. There is usually a minimum loan amount for each split and some Lender's may charge a combination fee or split loan fee.

Bridging Finance or Go-Between Loan

Bridging Finance or Go-Between Loans are designed to fill the gap between the purchase of your new property and the sale of your old property. If you have signed to purchase your new house but aren't selling your current house until after your new house settles then you need to bridge the gap. By applying for a bridging loan or go-between loan you have the option of borrowing the full purchase price of your new home and paying the difference when you sell your old home. The servicing is generally worked out on the end debt, which is the amount you are left to repay under normal loan terms.