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Lending Products
For First Home Buyers
As a first home buyer you may be wondering how it all works! We help first home buyers every day to achieve their dreams. Quite often the banks offer first home buyers concessions on rates and fees, to help them get their foot in the door. We can help you decide which of these offers is going to best for you. We also give you a full costing guide so you know what government and legal costs you will have. We even lodge your First Home Owners Grant for you with the chosen bank. Call us today if you are in the market for your first home, we're as excited as you are.
For Investors
Investors typically have more complex loan structuring requirements. They need to split their loans into those which are tax deductible and those that aren't. They also typically have a higher debt figure and are therefore entitled to bigger discounts and better packages that can save them on fees. Investors may also find value in bank packages that offer business loans that are residentially secured at residential rates. We can offer you a loan structuring proposal for your investment needs.
Land And Construction Loans
Thinking of buying land and building your own? Construction loans generally finance your land, and then based on 5 draw-downs, fund your homes construction with your builder. Owner builder loans are also available but you will need to meet your owner builders licensing requirements for the state you are building in. Although they can seem daunting at first, we will explain the whole process to you and assist you with funding the loan from day one, until your home is complete and you are ready to move in.
Bridging Finance
Found the ideal home to upgrade to, but haven't sold your own yet? Bridging finance is the answer. Bridging finance allows you to buy and move in to your new home, while your old home is still on the market. Bridging finance typically allows you 6 months (and 12 in some cases) to sell your old home. Repayments are made on the new mortgage, but repayments on the old mortgage are not required, instead, the interest is just added to the loan, and is paid out when you sell the property. It's cheaper to sell the property as soon as you can but bridging finance can be a great solution so you don't miss out on the right house.
Lo Doc Or No Doc Loans
For the self-employed whose tax returns and paperwork are not available, we can offer an easy solution to documenting your income. The banks introduced a product called "Lo Doc" loans, meaning that you simply sign a declaration and state your gross income. The rates on Lo Doc loans can be almost as good as standard loans too, we will quote you on any applicable fees associated with this product. There is also "No Doc" loans, which don't require a declaration of income, simply a declaration of your ability to repay the loan. Policies, rates and fees do differ greatly from lender to lender, so if you are self-employed without financials using our brokerage service to identify the best solution is priceless. Call us for more details today.
Top Up Loans, Loan Increases
Want to buy a car, go on a holiday, renovate or access equity in your home? Top up loans can be offered for nearly any worthwhile purpose. If you have enough equity in your home you can potentially access this as an additional loan, or a top up to your current loan. Speak to one of our consultants today to see if you would qualify for this.
Reverse Mortgages
Reverse mortgages are available for applicants with a minimum age of 60. Reverse mortgages are named as such because instead of the mortgage getting smaller, the mortgage increases in size as time goes on, because you never have to pay it back until the property is sold. Reverse mortgages provide an excellent solution to the asset rich and cash poor situation arising for our senior community. Independent information relating to reverse mortgages can be found through SEQUAL, the Senior Australians Equity Release Association of Lenders. We only deal with SEQUAL accredited lenders. Visit www.sequal.com.au for more information and contact us if you would like to know what reverse mortgages you qualify for.
Commercial Loans
We are accredited to offer you commercial lending should you require a purchase of a business premises or investment. Commercial lending is available for lo doc applicants, and a variety of product types are available. Please speak to John at the Cairns Home Loans office should you require further information.
Equipment Finance
Equipment finance can be arranged for just about any business item provided it can be itemized. We can finance anything from your sheep to your staff’s novated leases. Talk to us today for everything from small ticket items to chattel mortgages, and we’ll obtain a competitive quote and terms that suit you. For those of you in tourism or other seasonal industries we can structure repayments to suit your business’s busy periods also. Visit www.cairnscarloans.com.au for more information.
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Types Of Financing
Standard Variable Interest Rate Loan
This type of loan is by far the most common among Australian borrowers. The interest rate is subject to market forces and can therefore go up or down. However, with a standard variable interest rate you have more flexibility than a fixed rate. This means that you can usually pay unlimited extra amounts without penalty, redraw excess repayments, fix all or part of the loan at any time and repay the loan in full at any time without penalty. Standard variable loans are offered by both bank and non-bank lenders.
Basic Variable Interest Rate Loan
Many lenders, particularly the banks (so they can compete with non-bank lenders standard variable products) now offer a "basic" variable loan with lower rates than standard variable loans. These loans are generally "no frills" loans and do not have the features of their standard variable rate cousins. They are suited to people on a tight budget who do not want the frills and will therefore not require features like redraw, lump sum payments, portability, etc. A word of caution here. Most of these loans do not allow you to fix the interest rate without incurring a significant fee. So, if interest rates rise and you wish to fix, any savings from being on the lower rate may be lost in the switching fee. There may also be penalties if you repay, or discharge the loan early.
Fixed Interest Rate Loan
A fixed interest rate loan allows you to fix the interest rate for a period of time, generally between one and five years, but with some lenders seven, ten and even fifteen years. After the fixed term the loan usually reverts to the then standard variable rate or you may choose to re-fix the loan for another term. One advantage of these types of loans is the certainty of the monthly payments during the fixed period as the interest rate will not vary. However, a major disadvantage is that a large number of lenders will not allow you to make extra repayments without incurring a penalty fee, or if they do allow extra payments there is a limit. Also, if you decide to sell your home whilst on a fixed interest rate a penalty will generally apply.
The Line of Credit Loan
These loans provide the ultimate in flexibility and, along with 100% offset loans are rapidly gaining favour with borrowers. Your total income is deposited into the loan account thereby reducing balance. As interest is charged daily on the outstanding balance then while ever that money sits in the loan account the interest charge will be lower. The easiest way to understand how these accounts work is to look at them like a savings account in reverse. The balance is always negative and the closer to zero you get the better off you are. Generally, these loans are best suited to people who have excess disposable income each month. Money to meet living expenses and bills can either be withdrawn directly from the account or, alternatively, paid for using a credit card with up to 55 days interest free.
Professional Packages
Once your loan size goes over $250,000, a professional package can save you fees and interest. Professional packages can also be a solution to offer you all of the above loan types in one package, meaning you can 'split' your loan into one portion fixed, another variable, offering you the best of both worlds! Talk to our experienced loan consultants today about the benefits of professional packages offered by the banks.
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