Loans to assist with the purchase/refinance of owner-occupied and investment properties. Loan terms are for periods of up to 30 years and with interest only periods of up to 5 years available depending on the purpose.
Loans of up to 95% of the security property value are available. Lenders Mortgage Insurance is payable if the loan exceeds 80% of the property value. Variable or fixed interest rates, or a mixture of both, are available.
Construction loans, Land loans, Low Document loans and Non-conforming loans are also available. Debt consolidation can be considered too.
Further details regarding the types of residential & investment loans are provided below.
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The rate charged on a variable loan moves up or down in accordance with movements in interest rates, as set by the Reserve Bank.
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A fixed rate loan is a loan that has a fixed interest rate and therefore fixed loan repayments. The time period of these loans can vary, but you can usually “lock in” your repayments for between 1-5 years. Although the fixed rate period may be 3 years, the total length of the loan itself may be 25 or 30 years. At the end of the fixed loan period you can decide whether to fix the loan again for another period of time at the current market rates or convert the loan to a variable interest rate for the remaining time left of the loan.
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A split rate loan is a loan that has one portion of the loan fixed and one portion variable. You can select how much to allocate to each.
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You repay only the interest on the balance of the loan; therefore, repayments are lower than with a standard principal and interest loan. At the end of the interest only period – usually one to five years – you must start making Principal and Interest Repayments over the remaining term of the loan.
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Before choosing an interest-only home loan, you should seek advice from your accountant or financial advisor to see if this type of loan is right for you.
This type of property loan revolves around equity built up in your property and allows access to funds when needed. These products are creative ways to raise funds for investment by providing cash up to a pre-arranged limit. Each month the loan account balance is reduced by the amount of cash coming in and increased by the amount paid on the credit card or withdrawn in cash. As long as there is consistently more cash coming in than going out these accounts can work well. However, they can be very costly if the balance of the line of credit is not regularly reduced. It requires an interest-only payment as a minimum each month, which can add up to a lot of interest over the long term.
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A low-doc or no-doc mortgage is ideally suited for investors or self-employed borrowers looking to refinance, purchase or renovate. While tax returns or financial reports may not be required by the lender, you will need to provide evidence of your ability to repay the loan.
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The interest rate is usually low to attract borrowers. Also known as a honeymoon rate, this rate generally lasts only for around 12 months before it rises. Rates can be fixed or capped. Most revert to the standard rates at the end of the honeymoon period.
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People with poor credit ratings often have trouble sourcing a home loan. Many lenders now offer what are known as ‘non-conforming loans’ for people in this type of situation. While lenders may be willing to overlook prior credit problems, you will need to provide evidence of your ability to repay the loan. A larger deposit than is required for traditional loans will generally be required also.
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Disclaimer: The advice provided on this website is general advice only. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this advice you should consider the appropriateness of the advice, having regard to your own objectives, financial situation and needs. Lender Select Financial Services disclaim all and any guarantees, undertakings and warranties, expressed or implied, and shall not be liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or consequential loss or damage) arising out of or in connection with any use or reliance on the information or advice on this site. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information on this website is no substitute for credit advice. Lender Select Financial Services are authorised to arrange loans under the National Consumer Credit Protection Act 2009 (NCCP Act). We are not licensed to provide accounting, taxation or legal advice. It is important you understand your legal obligations under any loan and the financial consequences. If you have any doubts, you should obtain independent legal and financial advice before you enter any loan contract. If we arrange a loan for you to purchase or refinance real estate, you must make your own enquiries about the value of the real estate and its potential for future growth.