Types Of Loans
Types of Loans
Variable loans offer extra repayments, redraws on extra funds paid and flexibility to make changes. Rates may fluctuate depending on the RBA rates and funding costs. Great when they go down. Not so great when they go up.
Rates are fixed and will not change regardless of outside influences for the length of the fixed period. These are normally between 1 and 5 years so it’s ideal for people who do not intend to make finance and property changes within the fixed period. Limited extra repayments allowed and no redraw allowed on these loans. Be aware that break costs may apply within the fixed period.
Get the best of both worlds. Split your loan between fixed and variable. It’s a great way to mitigate fluctuations in the interest rate and still have a redraw with extra repayments. Ideal for people who do not intend to make finance and property changes within the fixed period. Be aware that break costs may apply within the fixed period.
Interest only and principle and interest Repayments
Interest only and principle and interest repayment can be attached to your fixed or variable loan.
Interest only (I/O) pays only the interest on the loan and not the principle. In this form you will still owe the original loan amount after every repayment. This is normally used by investors.
Principle and Interest (P&I) is where you will pay the interest and a portion of the principle off every month and slowly pay down your loan. This is normally used to repay your owner occupied home.
Specialist home loans
Financing a new build is different from buying an existing home. Construction loans consist of set of payments for the different stages of the build until your house is complete. Bank will normally a fixed price contract from your builder and a set of plans to assess your loan.
You’ve found the perfect new home but you’ll need to sell your existing home first, there is a solution known as a bridging home loan. There are many variables to these types of loans so contact us to discuss your personal circumstances further …
Home Equity Loans –
f you’ve paid off a significant amount of your home loan, a home equity home loan could unlock a range of new opportunities.
You could use the equity in your home to consolidate other expensive debts like your car and personal loans. You could release funds for a home renovation. You could also consider cash-out for that holiday you have always considered.
Self Managed Superannuation Fund (SMSF) Loans
Manage your own SMSF loans to purchase a residential or commercial property. This is a specialist area so
If you’re looking to expand your company or buy a competitor or purchase new premises, a business loan could be the solution.