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Along with our extremely flexible loan products and programs, we are also able to offer our clients a variety of features, to further customise our loans to suit borrower needs. Shown below is just a sample of the features and aspects available with our residential products, to help clients find the best loan to match their circumstances.


Products At a Glance


Options
Premium Premium Deluxe Line of
Credit
Minimum loan size $30,000 $30,000 $30,000
Additional Principal Repayments
Bpay & Other income credits
Cheque Book -
Construction / Vacant Land Facility * - -
Direct Crediting - Other
Direct Debit - Other Institutions -
Fees (Post Settlement)

Account Keeping Fee

 - - -

Deferred LMI fee (only for standard program loans over $500k & where Funder pays LMI)

 - -

Discharge Fee

Early Repayment Fee

Free Transactions Per Month

6 15 Unlimited

Ongoing Monthly Fee

- - -

Unused Facility Fee

- -
Interest Rate-

Fixed Rate Option

- -

Interest Only (1-10 Years) *

-

Variable Rates

Loan Term - to 30 Years
Mortgage Reduction Option
Payment Mode - Weekly, Fortnightly, Monthly
Phone & Internet Access
Redraw (excl. fixed rates)
Split Accounts with separate statements
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Weekly or Fortnightly Repayments

One of the simplest and best strategies for reducing the term and cost of the Borrowers loan (and thus the Borrower's exposure, should the interest rates rise) is to pay fortnightly (or weekly) rather than monthly.

What this means is that by splitting the monthly repayments into two and paying every fortnight, effectively the Borrower is making 13 monthly payments every year instead of 12 monthly payments per year, as is normally the case. And this can make a BIG difference. 		a


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Split Loan Arrangement
  By splitting the loan into two components, one part at a variable rate, and one part at a fixed rate, the Borrowers are effectively hedging their bets as to whether interest rates are going to rise and by how much. If interest rates rise the Borrowers will have the security of knowing part of their loan is safely fixed and will not move. But if interest rates stay the same, or only go up slightly, then they can use the flexibility of the variable rate portion of the loan and pay that part off quickly.

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Off-The-Plan

Buying 'off-the-plan' is the term given to the sale of properties before they have been completed and very often prior to commencement of construction.

This has become a popular method of buying property in Australia. A deposit of 10% is generally required, although a 5% deposit is allowed by certain developments and/or sales agents.
The popular attraction of off-the-plan purchase is that the purchase gets to buy an apartment at today's prices, and are not required to pay for it until completion. This may be six months a year, or even three years down the track.

As a general rule, our lenders and mortgage insurers do not finance off-the-plan properties, especially studio apartments, or those smaller than 50 square metres in inner city or city fringe areas. However, our Lenders and Lender Mortgage Insurers would generally consider the following scenarios:
 		 

  • Financing properties that are months off completion;
  • Certain inner city apartments at a conservative LVR (normally less than 80%); and
  • Lend against the valuation figure instead of purchase price, providing contract exchange and building commenced 12 months beforehand.

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Equity Loans

Equity is the amount the borrower has in their home and is the difference between the value of the home and the amount of money they still have owing on it.

a We have two types of Equity Loans. The first type is our term deposit products like the 'Premium' or the 'Deluxe' products. These loans allow the Borrower to receive a lump sum payment that they can use to make new purchases or to pay out a separate existing loan.

The second type is our 'Line of Credit' product which can be considered like a quasi-private overdraft account. It provides the Borrower with the ability (but not the obligation) to borrower up to a predetermined level, when and as they require the funds.

The real benefit for the Borrower here is the ability to access finance at housing loan rates for non-housing purposes, like buying a car, credit card debt consolidations, and other personal purposes.


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Home Renovating
Home renovation in recent years has become a very popular event in the life of many Australian home owners. There are also a number of different ways to finance these renovations, depending on a number of factors such as the amount of borrowing required, the term of the loan, whether the borrower has an existing loan, and whether they need to receive a lump sum loan or need to drawdown funds gradually.

If the borrower owns the house outright, they can simply take out variable rate loan product with a lump sum reduction if the loan amount is nominal and the renovation is not so substantial as to effect the value of the security property. 		 

NB: If council approval is required for substantial renovation work, a 'construction loan facility' may be more appropriate.
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Construction Loans

There are basically two types of construction loans. The first is a fully fledged construction loan, where funds are drawn down in stages to support funding of the construction cost to build a home on existing property.
The second type is where money is borrowed to purchase or refinance a vacant land property for construction.

The main conditions of the fully fledged construction loan type are: building approval; fixed price building contracts; drawn plans and specifications; and builders insurance.
The main requirements for the second type - vacant land construction - are: building must commence within 12 months of settlement.

The construction loan component is only a temporary feature of our standard home loan product, since once the construction is completed the interest only rate reverts back to the normal Principle and Interest (P&I) loan repayment mode.		 a


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Fixed Rates

Borrowers have the option to fix their interest rate between 1 to 5 years in order to hedge their bets against an interest rate rise.
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Interest Only Feature
  Our Interest Only loan is available to Borrowers for up to a term of 10 years.
While the minimum repayment required is the interest component only, the Borrower is entitled to make lump sum principle repayments at any time without penalty.

Please note that paying interest only is only a feature of a standard P&I loan

Benefits:
As less of the Borrower's cash flow is tied up repaying principle, and so they can use the difference for other purposes.
Largely, IO is a favourite of investors as it allows them to borrow money, make lower repayments, and use the freed up cash to make other investments.


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First Home Buyers

Borrowers now have the chance to enter the property market and own their own home by borrowing up to 95% of the loan to valuation ratio, up to an amount of $400,000 to $500,000. And if the borrower decides to purchase a home for owner occupation, they stand to receive great assistance for the government through various schemes.


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Redraws

  A redraw feature is one which allows the Borrower to access any additional repayments that they have paid into the loan account.

There is no fee charged to Borrowers for redraw, and no limitations to the number of redraws allowable.

This is a valuable feature because it allows Borrowers to make additional repayments (reducing the total interest you pay on the loan) with the knowledge that they can access the money at a later date, should they need to. And this can make a BIG difference.



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