There are lots of different loans available to potential borrowers and it can be hard to know which is the right type of loan for you.
The Right Loan
The consequences of a poorly chosen loan can last decades and cost you thousands of dollars a year. For this reason potential borrowers are increasingly engaging the services of experienced mortgage brokers with access to the latest mortgage options and financial news.
TLC can help you choose the perfect loan for your financial, domestic and future circumstances.
A little about the options available to you below:
Introductory or Honeymoon Loans
A loan with lower rates/repayments for a set time. After the time the rate then becomes a standard variable loan and the rates/repayments will increase. You could also be faced with a fee at the end of the honeymoon period to switch to another loan product.
Basic or "no Frills' Loans
A variable rate loan with lower rates. The low rates could mean you pay off the loan faster but there are no added options usually available on this loan type. You do need to check that the loan conditions suit your requirements.
Standard Variable
These loans are very common and offer more features than the basic loan. For example, these loans offer the option of splitting between fixed and variable.
Fixed Rate Loans
These are set at a fixed rate and are usually between 1 to 5 years. Fixed rates can give you an advantage of allowing you to organinse your finances and not run the risk of rising interest rates but then also give you a disadvantage of not benefiting from falling interest rates.
Equity line of credit loans
This is a way to use the equity in your home for personal purchases. You have the advantage of being able to make unlimited repayments as the repayments are not set. You need to check the conditions of the loan. Usually these loans are more expensive.
Bridging Loans
A bridging loan may be necessary to cover a financial gap between buying a property and one being sold. Usually these loans are short term and utilise the equity in your existing property.
Professional home Loan Packages
These are an all-in-one home loan package. They are a package that gives you lower interest rates, fee savings on your home loan, credit card and transaction accounts. This package has an annual fee which usually ranges from $120 to $395.
Construction Loans
These loans are usually for the purchase of house and land and have progress payments at different stages. Construction loans are usually interest only until the loan has been fully drawn.
The advice provided is general advice only as, in preparing it we did not take into account your lending objectives, financial situation or particular needs. Before making a decision on the basis of this advice, you should consider how appropriate the advice is to your particular lending needs, and objectives.
