The most common loan type
A Standard Variable Home Loan is popular option for borrowers for both home and investment loans, with repayment periods of up to 30 years.
One of the most popular loans
Basic loans have the lowest running costs - and less extras - so you generally pay a lower interest rate. Before you choose this loan make sure that you don’t need any extras (such as fee free credit cards, offset accounts and other accounts etc.) and compare the costs of getting them separately.
Loan with a set interest rate for a period of time
"Fixed rate" means you know exactly what your repayments will be for the term of the fixed rate. If you are unsure about whether to take a fixed or variable rate - you could consider a Split Home Loan. – so part of your borrowing is at a fixed interest rate and part at a variable interest rate.
A common loan type for the Self-Employed
Today, more people are self-employed or employed on contract, so their income patterns are not as regular as PAYE employees. A Lo Doc Loan can be set up whereby you "self-certify" your income. This avoids the trouble of asking your accountant to provide up-to-date financials every time you wish to borrow money.
One of the most popular loans
These loans have the lowest running costs - and less extras - so you generally pay a lower interest rate. Before you choose this loan make sure that you don’t need any extras (such as fee free credit cards, offset accounts and other accounts etc.) and compare the costs of getting them separately.
Discipline - regular repayments help you with budgeting. The interest rate is generally lower than standard variable rate loans. Extra repayments - these are usually allowed at any time.
A Standard Variable Home Loan is a common offer by banks and has been used by many people to buy properties. These home and investment loans have repayment periods of up to 30 years and are regularly used by home buyers today. However there are usually better deals to be found and traps to avoid which we can assist you with at Lightning Fast Home Loans. For example: don’t be misled by start-up lures – introductory or honeymoon rates! Often lending institutions will offer a discounted start-up period with lower interest rates to motivate you to choose the loan. The benefits of this discount (or honeymoon period) are short-lived as the remaining years on your loan are charged at a standard variable rate. There may be occasions when these are appropriate (such as when one borrower will receive an increased income in a year or two after completing study, returning to work after maternity leave etc), but we believe that a thorough discussion with us will ascertain whether this type of loan is the most suitable in your circumstances.
Discipline - regular monthly, fortnightly or weekly repayments help you with budgeting.
Redraw - most institutions will allow you (subject to terms and conditions) to withdraw additional repayments you have made over and above the minimum repayment.
Offset - it may have the ability to offset credit balances held in other accounts at the same institution against the principal of the loan. Extra repayments - these are usually allowed at any time.
Loan with interest rate locked in for a period of time
Fixed rate loans provide a fixed interest rate for the term of the fixed period. Fixed rate loans are for those who want certainty in their future repayments for a period of time and for those who anticipate future rises in variable interest rates. It is possible to split loans, such that so part of your borrowing is at a fixed interest rate and part at a variable interest rate – see Split Home Loans. (below)
Discipline - known repayments help you with budgeting. If interest rates go up, you will not be exposed to the increase in interest rates on your fixed rate loan. Extra repayments - these may be allowed but may be capped at a certain amount per year.
A common loan type for the Self-Employed
Today, more people are self-employed or employed on contract, so their income patterns are not as regular as PAYE employees. A Lo Doc Loan can be set up whereby you "self-certify" your income. You will generally need to supply 12 months of BAS or 12 months business transaction accounts statements to support your income declaration. Nevertheless, with these loans you do not have to supply a tax return and ATO Notice of Assesment. You may have some restrictions imposed, particularly in relation to the amount you can borrow against your property.
It is a misnomer that the professional package is just for professionals! This is not the case. In fact, the only requirement you need to access these loans is to meet the lender's minimum loan amount (which can start at $100,000). A professional package may offer you interest rate discounts depending on the loan size, as well as fee free transaction accounts, an offset account and credit cards free of charge and a range of other special offers. Higher interest rate discounts are often available for loans above $250,000.
Interest rate discounts on the standard variable rate and some line of credit products.
You may be eligible for other benefits such as fee free transaction accounts and the annual fee waived on some credit cards.
Most Home Loan lenders also offer no establishment fees and no ongoing monthly fees on your loans.
Extra repayments - these are usually allowed at any time.
Access funds while you repay your loan
With this type of loan, you can access funds up to your approved limit at any time. Your salary can be paid directly into the loan account and you can access the balance of the loan at any time - like a credit card. You can use these funds to purchase shares, buy a new car, start home renovations, go on holiday or so much more! You should thoroughly check all the facts before committing to this type of loan.
Fixed & Variable Interest Rate Loans (Split Home Loans)
If you are unsure as to whether interest rates are going up or down, or you want to minimise some of the uncertainty of your loan repayments, you can choose a Split Rate Loan. With this type of loan, you nominate how much of your home loan you would like to be secured with a fixed interest rate and how much of your home loan (the remaining amount) you would like to put on a variable interest rate. A Split Home Loan is a cautious way of borrowing as it provides greater certainty in repayments than a purely variable interest rate loan while maintaining some exposure the interest rate movements on the variable split. Split loans can be effectively used within Professional Packages where extra accounts do not incur further fees.
Bad Credit History?
If you have experienced financial problems in the past, this is the loan to help you re-build your bad credit rating and obtain a mortgage. Non-conforming lenders are very flexible - even if you have been bankrupt or just have a bad credit history, this type of product, sometimes known as a bad credit loan, will make it easier for you to secure your wanted mortgage.
Buy before you sell
This can simplify the transition between properties. If your home is for sale - and you find a property to buy, or wish to build - the lender advances the money so you can purchase your new home. Depending on the equity in your current home, you may be able to include all the fees too. The interest charged to your loan can be paid by you or capitalised (added to the loan amount). When your original property is sold, the proceeds are deposited to the new loan. The amount owing becomes your end loan and normal repayments commence.
Consolidating your debts or loans
Many people pay more interest than they need to on their debt. This means that it can cost a lot more and take a lot longer to reduce the amount owing. If you have debts - especially those with very high interest rates such as credit cards or personal loans - it can be very wise move to consolidate them into one loan at a lower overall interest rate. This has the twin benefits of saving you money and making it easier to track (and control) knowing how much you owe.
When it comes to consolidating your debts there are a range of options available. Which one is the most appropriate for you depends on your individual circumstances and factors such as your stage of life, how much equity you have in your current home, the nature and number of your debts and your overall financial situation.
We will help work through the options and can assist with this complex, but potentially very rewarding, loan option. This is where the knowledge and experience of your Lightning Fast Home Loans consultant can be invaluable. We'll look at your total situation and work with you to explain all your options and the advantages and risks associated with each. Then we'll ensure you get the full benefits from the loan of your choice.
Loans for building a new home or a new investment property
Whether you're building a new home for your family or an investment property, the whole process is often stressful and demanding - the last thing you need to worry about is your finance.
Choosing the right loan can save you worry and money, but it can be a complex process as there is a wide choice of home loans available. Which loan is the most appropriate for you, depends on a range of factors, including your overall financial position, the equity you will have in the finished property, your timeframe and whether you are selling another property, as part of the whole process.
This is where the knowledge and experience of a Lightning Fast Home Loans consultant can be invaluable.
For the over 60's
As governments put more responsibility on individuals to fund their own retirement, many people find that their super and other income sources such as the pension dont’t provide enough money to support the lifestyle they want. An obvious option is to sell their biggest asset - their home, but that too may be part of the way they want to live. This is where a reverse mortgage may provide the answer. A reverse mortgage is available to residential property owners over 60. It allows you to release funds using the equity in your home. You can use these funds as an income stream or for personal lifestyle needs like travel, home improvements etc.
Like a traditional mortgage there's interest to pay, but you dont’t have to make monthly repayments. The interest is capitalised, which means it’s added to the amount of the loan. When your home is eventually sold you'll pay back the amount of the loan (the cash you received) plus the interest owing. There are a range of reverse mortgage options available. Which one is the most appropriate for you depends on your individual circumstances and other factors.
This is where the knowledge and experience of your Lightning Fast Home Loans consultant can be invaluable. As SEQUAL accredited, we have the highest, specific industry qualification available to ensure that you get specialist advice. We can look at your total situation and work with you to explain all your options and the advantages and risks associated with each. Then we'll ensure you get the full benefits from the loan of your choice.
Loans for your business or commercial investments
In addition to home loans we also provide a full range of business loan services for property finance.
The most appropriate option for you depends on your individual circumstances and factors including the nature of your business, any other debts it may have, its overall financial situation, the reason for the business loan and your timeframe.
We have access to a wide range of both bank and non-bank lenders and we can assist you in finding the best finance solution for your business or commercial investment.