LOAN OPTIONS

Mortgage managers, banks, credit unions, brokers, insurance groups all offer a seemingly endless choice of loan options – introductory rates, standard variable rates, fixed rates, redraw facilities, lines of credit loans and interest only loans, the list goes on. But with choice comes confusion.

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How do you determine whether a home loan is suitable for you?

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• Set your financial goals, determine your budget and work out the term of the loan (i.e. how long you will be paying it off). You may do this yourself or with your financial advisor or accountant.

• Ensure the organisation or person you choose to obtain your loan from is a member of the Mortgage and Finance Association of Australia (MFAA). The MFAA Member logo means you are working with a professional who is bound by and subject to a strict industry code of practice.

• Research the types of loans available so you can explore all options available to you with your mortgage provider.

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Basic Variable Rate Loans

Basic variable rate loans are extremely popular due to their low interest rates. The trade-off with these types of products is that they are limited on features.

Standard Variable Rate Loans

Standard variable rate loans are known for their flexibility and features. Partly fixing, loan splits, offset, additional repayments and redraw are usually standard with this type of product.

Fixed Rate Loans

Fixed rate loans protect borrowers against interest rate rises for a given period of time although work against borrowers when rates fall. Fixed rate loans are popular amongst investors and home owners that require a level of security when forward planning their repayments.
 

Combination

Combination loans allow borrowers to spilt their home loan into a partly fixed and variable portions. This provides borrowers with the flexibility of a variable rate product and added certainty of a fixed rate loan.
 

Equity Loans or Lines of Credit

Equity loans or lines of credit allow borrowers to unlock the equity in their properties for any worth while purpose such as renovating, investing, motor vehicles, children’s education, etc. These types of products provide a low cost option to other forms of personal lending with the flexibility of allowing interest to capitalise.

Professional Packages

A professional package can give you all the benefits of a standard variable rate loan with a discounted interest rate, in addition to some other benefits. These may include a credit card or a discount on the establishment fee. Eligibility is based on income or loan limit. Most lenders charge an annual or monthly fee for this privilege.

Low-Doc Loans

Low-doc loans are a great solution where borrowers can afford the loan repayments but are unable to disclose full income details. Low-doc loans are popular amongst self employed applicants or where they have an irregular income stream.
 

Non Conforming Loans
 

Non conforming loans are designed to benefit borrowers who do not meet mainstream lenders’ criterion. These types of loans may be the perfect solution where a borrowers’ credit history may have been impaired due to a one-off situation such as divorce, failed business, illness, or temporary unemployment.

Family Pledge Loans

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A family pledge of limited guarantee is a facility whereby your relatives can help you purchase a home without them actually giving you any money towards the deposit. Instead, they use some of the equity in their own property to provide additional security for a limited amount of your loan.
This facility reduces the Loan to Value Ratio (LVR) and means that you could actually borrow up to 100% plus costs without paying any Lenders Mortgage Insurance (LMI) costs. This option can save you thousands of dollars and help you get into the property market sooner

Leasing

If you’re looking at upgrading or refinancing your equipment Mortgage & Finance Management has all the right solutions.

We provide business or consumer finance from a wide range of lenders to ensure you receive a highly competitive product.
 

We can provide finance for most industries and for most purposes such as:

    •    Computer equipment
    •    Construction & earthmoving equipment
    •    Marine craft
    •    Medical equipment
    •    Motor vehicles
    •    Printing equipment
    •    Shop fit-outs

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Commercial

We have access to a wide range of commercial lending products to help facilitate the ongoing finance needs of your business or enterprise. From a wide range of lenders, we are well positioned to offer you products such as term loans, revolving lines of credit and interest only loans.
 

Disclaimer: This is for information purposes only, and must not be relied upon as a substitute for professional services or legal advice.