Start Your Home Loan Journey Here
The process involved in buying your first home can be daunting and overwhelming. And it may not be one size fits all. That’s why at Financely, we endeavour to provide you with Home Loan Solutions tailored to your financial situation.
By understanding your needs and visions for the future, we will endeavour to provide the right Home or Investment Loan product for you.
HOME LOANS
Home Loans are designed for owner occupiers, and it is slightly different to Investment Loans. Suited to the following client(s):
1. First Home Buyers
2. Home Owners looking to upsize, or downsize their existing properties
3. Renovations
4. Personal Debt Consolidation
INVESTMENT LOANS
Investment Loans are geared towards short-term or long-term capital growth or rental return from a residential property. Mostly a secondary purchase where clients are looking to leverage off the equity in their existing property(s) to grow asset portfolio, or looking at a tax effective strategy, or simply to take advantage of the current property and rental market situation.
CONSTRUCTION LOANS
If you intending to build your own home, investment property or even for a renovation, then we will help you find the right Construction Loan, and also make you aware of some of the costs associated with this type of loan. So if you buying an old house to rebuild or looking to renovate your existing house or an investment property, come and see us first.
EQUITY LOANS
Equity Loans or Line of Credit allow borrowers to unlock the equity in their properties for any personal use such as purchasing a car, renovating their house, spending for a holiday or investing. These types of products provide a low cost option to other forms of personal loans with the flexibility of allowing interest to capitalise, or you can choose to pay the minimum interest repayments each month.
LO DOC LOANS
Quite simply Loans that do not fit the Bank’s normal lending criterias. As an alternative, there are lenders who will look outside these guidelines to assist with these types of applications. Each application wil be subject to the normal due diligence process, but with some flexibility in terms of arrears, income verification etc..
BRIDGING FINANCE
A short term financing tool to ‘bridge’ the gap between a new and old mortgage. Typically borrowed as interest only, if you’re currently in the process of selling a property and purchasing another one. This type of facility will help you secure that second property while you wait for your current property to sell.
Our Loan Options
Description: Lending comes in all types and shapes. Here are some of the options.
VARIABLE RATES
Standard Variable Rate Home Loans are more popular and are best known for their flexibility and features like redraws, offset, loan splits, etc.. However, repayments or interest costs do vary depending on the interest rate fluctuations. There is also the option of making additional repayments, and the ability to redraw additional repayments you made at any time.
FEATURES
- Ablity to have an OFFSET Feature.
- Ability to have a Redraw option.
PROS
- Flexibility of Repayments. Enables you to make additional Repayments.
- Ability to close account without penalties (No Breakcost)
CONS
- Less secure – Rates can move against you i.e. move upwards costing more in interest.
- Commitments may change as a result of interest rate changes – hard to maintain a budget.
FIXED RATES
Fixed Rate Loans protect borrowers against interest rate rises during the fixed rate period, however, it disadvantages the client when rates fall. Fixed Rate Loans are popular amongst clients that require a level of certainty when planning their future repayments. Penalties may apply for making additional repayments during the fixed period or repaying the loan earlier then the specified term of contract.
FEATURES
- Secure Rate Terms up to 10 years.
- Fixed repayments on either Principal & interest or Interest Only repayments.
PROS
- Security – your commitments don’t change if the rates increases.
- Fixed commitments – easy to budget for the term of the fixed rate. Fixed repayments on either Principal & Interest or Interest Only repayments.
CONS
- Possible Breakcost applicable if loan closed or cancelled.
- Less flexibility – unable to repay the loan quickly.
OFFSET OR REDRAW?
Redraw allows you to pay extra into the loan account and withdraw any surplus funds from this account as you need it, hence saving you interest on the loan. An Offset on the other hand has similar benefits to a redraw, but one of the main difference is that the surplus funds are sitting in your savings account as opposed to your loan account.
FEATURES
- Interest Saving Mechanism
- Substitute to having a Redraw Facility.
PROS
- Ability to save interest on existing savings held in offset account.
- Funds accessible easily.
CONS
- Funds can be accessed with ease – may discourage savings.
INTEREST ONLY LOANS
This is more a feature to your loan where you are only repaying the interest component on your loan. It allows the investor to minimise his or her commitment on the loan. This feature on loans are available for a fixed initial period. And because you’re not paying off any principal on the loan, the amount you borrowed remains the same at the end of the interest only period.
FEATURES
- Interest Only repayments required as a minimum.
PROS
- Good for cashflow.
- Minimum commitment level.
CONS
- Debt remains same i..e. no reductions.
- Less likely to build up or release equity from property.
PROFESSIONAL PACKAGE
Recommended for loans more than $250,000 or more. A Professional Package allows clients a discounted rate off the standard rates, plus additional features and benefits like a Fee Free Credit Card or Transactional Account, free ATM withdrawls or redraws etc.. The only fee that most Banks will charge is an annual package fee ranging from as little as $300 to $400.
FEATURES
- Packaged Product.
PROS
- Savings on interest by way of higher discount.
- Added benefits like free Accounts or Credit Cards.
CONS
- Expensive as annual fee may apply.
- Expensive once your loan reaches a nominal amount – costs outweigh savings.