Products & Loan Types

Products | Loan Types

Products

No Deposit Home Loan (NDHL)

The main feature of a No Deposit Home Loan (NDHL) is self-explanatory - it allows you to borrow up to 100% of the purchase price of your home whilst still offering you a full range of features, including offset and redraw facilities.

Historically, NDHL have attracted a higher rate of interest, but competition amongst the lenders has seen many lenders pass on their best rates for NDHL.

NDHL can be utilised to build a home or investment property or to purchase an established home/investment property. It is ideal if you have good cash flow, but low equity.

Just a word of warning, remember there are a number of other costs associated with buying or building a home and you may have to contribute towards these costs. Ask us about 105% home loans.

In the main, tighter lending guidelines are associated with NDHLís. Individual circumstances differ and that's why you should consider taking up the free service of an expert from Mortgage and Finance to review your options.

Feel free to contact us today to discuss with no obligations.

Professional Packages

Professional Packages are permanently discounted loans for borrowers that meet certain criteria. With some lenders it means actually being employed in a certain profession. But with the vast majority of lenders, Professional Packages are available to a borrower, borrowing in excess of $150, 000.

If you qualify for this product, then the rates will be hard to beat. Discounts vary depending on the size of the loan and start on loans from $150,000. Discounts of up to 0.8% on variable rates and up to 0.15% on fixed rates may be available. You will still enjoy all of the features that most borrowers want today, coupled with other attractive incentives such as concessions on credit cards, bank accounts and lender application fees.

Feel free to contact us today to discuss with no obligations.

Introductory Rate Home Loan

The Introductory Rate Home Loan starts with a low interest rate (often the lowest on the market) and is suitable if you want lower, fixed repayments during the first 12 months of the loan to make things easier. At the end of the initial 12 month term, the loan converts to the standard variable interest rate or the option of a fixed interest rate.

The advantage of an Introductory Rate Home Loan is that it offers borrowers a chance to reduce the principal quickly by making extra repayments. The main disadvantage is that most banks charge penalties if you pay out these loans within the first three to four years.

Another disadvantage of this loan type is that generally, after the first 12 months on the considerably reduced rate, the variable interest rate would revert to the lenders standard variable rate. The standard variable rate can be up to 0.7% more expensive than the lenderís basic or professional variable rate.

Certain lenders will pass on professional package discounts (variable rates) after the 1st year, but the ongoing discount is significantly less, approximately 0.4%.

Ask a Mortgage and Finance Consultant to do the figures as to whether this loan suits you.

Feel free to contact us today to discuss with no obligations.

Standard Variable Home Loan (SVHL)

These days few loans are written as Standard Variable Home Loans (SVHL). Many SVHL features are available via a Basic Variable Loan (BVL). BVL are up to 0.7% cheaper than SVHL. Many borrowers couple a Professional Package and a SVHL to reduce the interest rate down by up to 0.7%.

Feel free to contact us today to discuss with no obligations.

Basic Variable Home Loan

Basic Variable Loans (BVL) offers virtually all of the features and benefits of the lender SVHLís, but with up to a 0.7% lower variable rate. Certainly, BVL do not offer a 100% offset feature, this is counteracted by the availability of the redraw feature. This is a very popular loan!

Feel free to contact us today to discuss with no obligations.

Line of Credit (LOC)

The Line of Credit (LOC) is the ĎKing of Flexibilityí. LOCís are generally evergreen facilities, ie there is no term or end date to the loan. The borrower can use as much or as little of the LOC limit as they would like and only pay interest on what you actually use. Large lump sum repayments can be made at anytime and then these funds can be redrawn for another personal purpose.

With cheque book, internet, phone & ATM access to funds LOCís are the perfect loan product for:

  • Share and managed funds investors
  • Borrowers who wish to operate their own mortgage minimisation program. (see your financial advisor before embarking on a mortgage minimisation program)
  • Borrowers who do not require the total loan proceeds all at once and wish to progressively draw down the loan.

Feel free to contact us today to discuss with no obligations.

Fixed Rate Home Loan (FRL)

A Fixed Rate Home Loan (FRL) offers you security. Feel safe knowing that there will be no change in the interest rate of your loan over a set term - anywhere from 6 months to 10 years. Once the term expires the loan rolls over to a variable rate, or you have the option of re-fixing your rate for another term.

FRL are generally less flexible than variable loans, for example:

  • You are limited in how much you can make in extra repayments
  • In the main, they do not have a 100% offset feature
  • In the main, they do not have the redraw feature
  • In the main, you cannot progressively draw a fixed rate loan for construction purposes.

Should you wish to payout a FRL early; you may be up for significant early payout penalties. To counteract the draw backs of FRLís, we suggest the borrower may wish to consider a combo loan- part fixed or part variable. Ask us about our Combo Loans.

FRLís are perfect for investment property purchase.

Feel free to contact us today to discuss with no obligations.

Combo Loans

Want the security of knowing that your interest rates will not increase for up to 10 years, but donít want to sacrifice all the great flexibility of a variable loan?

Then we suggest you apply for a ĎCombo Loaní, ie part of the loan fixed for up to 10 years and the other portion variable.

Combo Loans

Feel free to contact us today to discuss with no obligations.

Home to Home Loans

So you have found the home you want to buy, but you havenít even placed your existing home on the market.

To top it off, the Real Estate Agent is saying, ďDonít bother putting an offer in subject to the sale of your existing houseĒ. What can you do?

Consider a home to home loan!!!

If you have sufficient amount of equity in your existing home the lender may fund the purchase of the new home, prior to you selling your existing home.

But hold onto your horses, this loan doesnít possess magical properties, and there is no denying you would be carrying considerable amount of debt, whilst you sell your existing property.

There are two ways the lender will assist you in making the repayments, ie the lender will allow the interest to accumulate to the loan or the lender will advance you additional monies to help with the repayments.

The lender will allow you up to 12 months to sell your existing house. If this option is for you, we think you will be pleasantly surprised with the interest rates.

Feel free to contact us today to discuss with no obligations.

Non-Conforming Loans

If you answer "yes" to any of the following questions, you may wish to consider a Non-Conforming loan:

  • Do you have a poor credit history?
  • Have you been previously bankrupt?
  • Are you self employed and have been trading for a limited amount of time?
  • Are you self employed, have difficulty in proving your income, and have a minimal deposit?

Non- Conforming Lenders (NCL) specialise in dealing with borrowers of this type. Generally, NCLís have higher interest rates depending on your situation but with a good repayment pattern these interest rates can step down over a number of years.

Feel free to contact us today to discuss with no obligations.

Lo Doc Loans

Are you self employed and at times have difficulty proving your income? Or are you a wage earner and due to remuneration package variables such as bonuses and commission you also have the difficulty in proving your income? If this is the case, then you may consider a Lo Doc Loan for your funding needs.

Instead of having to provide the lender with reams of paperwork justifying your income, all you need to do is fill in a declaration stating your income. Other lending criteria associated with Lo Doc Loans include:

  • Possession of registered ABN (Self employed borrowers)
  • Minimum 2 years self employed (Self employed borrowers)
  • A clear credit history
  • 20% equity in the real estate transaction

Should your situation not qualify for the Lo Doc policy set-out above, rest assured non-conforming lenders will assess borrowers who have been self employed for less then 2 years or have less than 20% equity or whose credit rating is less then squeaky clean.

Mortgage and Finance strongly recommends that borrower seek independent legal and financial advice prior to taking out a Lo Doc Loan.

Feel free to contact us today to discuss with no obligations.

No Docís Loan

If over time, through ďcannyĒ investment you have built up sufficient equity in real estate and want to invest further, you may wish to consider a No Doc Loan. Thatís right, No Doc means what it says, no need to provide the lender with any proof of income or provide any statement of assets or liabilities. No Doc borrowers are predominately:

  • Borrowing for investment purposes
  • Self employed
  • Have approx 30% equity in the real estate transaction
  • Have a clear credit history

Mortgage and Finance strongly recommends that before taking out a No Doc Loan, the borrower seeks independent legal and financial advice.

Feel free to contact us today to discuss with no obligations.

Deposit Bonds

At Mortgage and Finance we understand that the burden of a significant cash out lay once the vendor accepts your offer can be difficult or impractical. Your cash may be tied up in a term deposit which may prove costly to break or the majority of your cash may be tied up in real estate equity and accessing this equity may take longer than is practical. And if you are Ďbuying off the planí your deposit may be Ďtied upí for up to 5 years!

The solution to these conundrums may be a Deposit Bond (DB). A DB takes the place of the cash deposit required between the time the vendor accepts your offer and the day of settlement. At settlement you must pay the final purchase price of the property (including the amount of the DB). Your loan or cash equity takes the place of the DB.

DBís are especially useful in purchasing apartments off the plan where the vendor requires a 10% deposit and the apartment may take up to 5 years to complete.

A DB is also useful in Australian states where a 10% deposit is the norm eg NSW.

If you, as the purchaser fail to settle on the property the vendor may then request that the DB issuer pay to the vendor the face value of the bond. The issuer of the DB will then pursue you for the face value of the bond.

Advantages of DBís:

  • Cost effective: The once off premium is generally less than interest costs if you were to raise a loan for the deposit.
  • The application process for DBís is very streamlined and a DB may be available within 5 days of application
  • Saves you having to break term deposits or access equity within existing properties
  • Especially useful when purchasing apartments off the plan, where your deposit may be tied up for up to 5 years.

Feel free to contact us today to discuss with no obligations.

Commercial Loans

Commercial lending can be a more complicated involved process. Factors including:

  • The nature of your business and the industry you operate in
  • Your historical and existing financial situation
  • The purpose of your borrowing requirement
  • All play a role in getting a commercial loan application approved.

Whether you wish to:

  • Purchase an established commercial property
  • Construct a commercial property or large scale residential development
  • Purchase a business

A skilled Mortgage and Finance Consultant can look at placing your commercial finance requirements with up to 35 different lenders and tailor a financial package to suit your needs.

Feel free to contact us today to discuss with no obligations.

Car & Equipment Loans

Wanting to purchase that zippy red sports car, or are you wanting to update the equipment in your processing plant for increased efficiencies?

A Mortgage and Finance Consultant can help you with whatever your vehicle or equipment financing needs may be. We have numerous relationships with specialised equipment financers and we can put together the most competitive equipment finance package available.

Sound good, sounds even better when we tell you that the majority of Mortgage and Finance equipment finance packages donít require bricks and mortar security. Speedy, cost efficient and probably no real estate security thatís how equipment finance should be.

Feel free to contact us today to discuss with no obligations.

Loan Types

There are literally hundreds if not thousands, of different home loan products on the market today. Home loans will differ on interest rates, features, establishment and on going fees and lender approval policy.

Thinking about doing the research yourself? Does just thinking about it exhaust you?

No wonder, when you appreciate the myriad of options available. Isnít it comforting to know that a qualified and informed Mortgage and Finance Consultant can match the most appropriate loan to your own individual circumstances, and there is no fee!

As you move through life the type of borrower you are may change. Following are some of the different borrowers Mortgage and Finance assist everyday:

First Home Buyer

Itís a big wide world out there and letís face it, you have never experienced buying a property before. It really is a time when you need to seek the services of a Mortgage and Finance Consultant to assist you in the areas of:

  • How much deposit will you require?
  • What are all the different costs associated when buying a property?
  • Do you have enough funds to cover all the fees?
  • How do you apply for the First Home Owners Grant? And what can you use it for?
  • Do you get any stamp duty concessions being a first home buyer?
  • How much is this property going to cost per month and can you afford it?
  • What is the best home loan for your situation?
  • Organising a pre-approval to ensure that you are best placed to negotiate when you do find a property.

Feel free to contact us today to discuss with no obligations.

Owner Occupier

So itís been a number of years since you brought your home and in that time you have built up a significant amount of equity.

Has the "patter of tiny little feet" made your existing home a little squeezy? Are you feeling comfortable with your current financial situation and want to "trade up"?

A Mortgage and Finance Consultant can assist you in the following ways:

  1. Estimate the amount of equity you have built up in your existing property
  2. The loan amount required to purchase your new property
  3. Do you want to and/or are you able to utilise a home to home loan?
  4. What is the new home going to cost you in repayments per month?
  5. Organising a pre-approval to ensure you are in the best position to negotiate the price of your new property.

Feel free to contact us today to discuss with no obligations.

Investors

Itís widely believed that in the future, the Australian government is going to have difficulty in providing for its aging population. Hence, having a sound investment strategy may help ensure that you actually Ďliveí in retirement not just "exist".

A sound investment strategy may also help provide a strong financial base for your children. Real estate investment has always been an integral part of most Australians investment strategy.

Not only can you enjoy watching your investment grow, there are also some great tax advantages along the way. A Mortgage and Finance Consultant can help structure your investment and financial requirements correctly the first time.

You may not wish to invest in real estate; buy may wish to invest in shares or managed funds. If this is the case, then a Mortgage and Finance Consultant can help you finance that as well.

Mortgage and Finance strongly recommends that you seek independent financial and legal advice prior to embarking on an investment strategy.

Feel free to contact us today to discuss with no obligations.

Refinance

That home loan you signed up for 5 years ago suited you then but how does it ďstack upĒ now? The mortgage industry is ever changing and highly fluid. As a result, new products are coming to market daily.

There are a couple of main reasons why you may refinance:

  • Accessing equity for any worthwhile purpose eg renovations, holidays, updating the car, or for investment.
  • Swapping lenders and/or loan types in an effort to avail yourself of a Better more flexible loan at a more competitive price.
  • The government has even made it more cost effective to refinance be waiving the loan stamp duty on refinancing home loans, (not investment property loans).
  • If you would like a free mortgage check please contact us so we can expertly review your finance with no obligations.

Seniors Loan

There has been a steady growth in the value of Australian homes over the years; therefore itís likely that your home has built up significant equity. However, to retire comfortably many people find that their super or pension doesnít support their lifestyle. Without sacrificing your home, reverse mortgages may be the answer.

Reverse Mortgages are best suited to borrowers who seek to convert the equity in their homes into cash. This style of loan allows the cash-poor, asset-rich to tap into the value of their property without having to sell it.

If you are over 60 and own your home, you may qualify for a reverse mortgage. Using the equity in your home allows you to release funds as an income source or for personal needs like travel or home improvements.

With any loan there is of course interest to pay, however a reverse mortgage requires no monthly payments. Instead, the loan is paid back with the interest accumulated when the house is sold. In other words, the interest is capitalised which means itís added to the amount of the loan.

There are a variety of reverse mortgage options and a knowledgeable Mortgage and Finance Consultant can help ensure that you are maximising the full benefits.

Mortgage and Finance strongly recommends independent legal and financial advice before taking on a reverse mortgage.

Feel free to contact us today to discuss with no obligations.

Self employed

When you are self employed, getting a loan is more complicated than someone who earns a PAYG income. There is more paperwork to submit to meet the requirements of a lender plus the complexities of your taxable income can make getting a loan a difficult process.

Certain lenders have a greater appetite for self employed applicants. So if itís finding a lender who speaks your self employed language or utilising Low Doc or a No Doc loan, then a Mortgage and Finance Consultant is experienced in this field. We can help simplify the process to get you a loan to suit your individual needs.

Feel free to contact us today to discuss with no obligations.

Poor Credit History

If you answer "yes" to any of the following questions, you may wish to consider a Non-Conforming loan.

  • Do you have a poor credit history?
  • Have you been previously bankrupt?
  • Are you self employed and have been trading for a limited amount of time?
  • Are you self employed have difficulty in proving your income and have a minimal deposit?

Non- Conforming Lenders (NCL) specialise in dealing with borrowers of this type. Generally, NCLís have higher interest rates depending on your situation but with a good repayment pattern these interest rates can step down over a number of years.

Feel free to contact us today to discuss with no obligations.

Overseas Buyer

Overseas borrowers fall into 2 categories:

  • Australian citizen or Permanent Resident living and working overseas, but purchasing in Australia. Historically, lenders have been a little more conservative when financing Australians living overseas. That is, they would lend no more than 70-80% of the value of the property. Mortgage and Finance now has mainstream/tier 1 lenders, lending up to 90% and above of property value for Australianís living overseas. The majority of loan types within the suite of products are available to Australians living abroad. Restrictions do exist if you wish to borrow on a low doc/no doc basis.
  • Foreign nationals with no Australian residency who wish to purchase and finance property within Australia. There are lenders on Mortgage and Financeís panel that will finance foreign national borrowers. Lenders normally will cap their exposure to 70-80% of the property value. Whilst in the minority, certain lenders will also look at Lo Doc for foreign nationals. If a foreign national wishes to purchase an Australian property they will require approval from the Foreign Investment Review Board (FIRB). FIRB information is available a www.firb.gov.au

Feel free to contact us today to discuss with no obligations.