Home Loan Types
First Home Buyer Home Loan
Buying your first home is an exciting time. First home buyers are offered government concessions to assist you joining the home ownership ladder. Some lenders will also offer first home buyers’ further savings, so it pays to receive professional and sound advice.
Owner Occupied Home Loan
These are home loans where the person buying the home intends to live in the property being purchased. These home loans are generally cheaper than investment home loans. Depending on the borrowers age owner occupied home loans can have a term up to 40 years.
Investment Home Loan
These are home loans where the person buying the property intends to rent the property to someone else to generate rental income. Investment home loans can be either interest only or principal and interest and can have a term of up to 30 years.
Self Employed Home Loan
Home loans for self-employed people take a bit more work. If you have been self-employed for less than 2 years some lenders will not assist you. Self-employed people wanting a home loan can really benefit from a broker’s experience.
Lo Doc Home Loan (also called Alt Doc Home Loan)
Some self-employed people cannot provide enough information to get a home loan. In these cases you may be able to obtain a lo doc home loan by providing alternate evidence of your income and expenses. Some lo doc home loans are no more expensive than normal home loans.
Low Deposit Home Loan
Lenders want you to have a deposit of 20% of the price of your home. But it can be hard to save this amount while you are renting and there are options available to assist you if you only have a small deposit. See Lenders Mortgage Insurance and Family Guarantee Home Loan.
Family Guarantee Home Loan
If you have not managed to save a full 20% deposit (or in some cases you have not saved at all) a family guarantee home loan may be for you. Your parents either provide their home or cash as additional security and that is held by the lender until your loan has been reduced.
Family guarantee home loans are a great way for younger people to enter the property market. Also see Lenders Mortgage Insurance.
Lenders Mortgage Insurance
Lenders Mortgage Insurance is an alternative to family guarantee home loans. Lenders Mortgage Insurance is purchased by the borrower to protect the lender, allowing them to lend more than the normal 80% of the value of the property.
Depending on the location and type of the property lenders mortgage insurance may allow you to increase your home loan up to 95% of the value of your home.
Lifestyle Property Home Loan
Hobby Farm Home Loan
Rural Residential Home Loan
Many lenders will not do a home loan for properties over 5 or 10 acres. We have access to lenders that will consider lifestyle property home loans for properties up to 250 acres. So, if buying a lifestyle property is your dream talk to us today.
Construction Home Loan
If you prefer to build we have the construction home loan for you. We can arrange loans where you only pay the interest on the amount that you have drawn meaning that you are not paying full loan repayments while you are still paying rent while you are building. Owner builder? See Owner Builder Home Loan.
Owner Builder Home Loan
We can provide owner builder home loans as well, but lenders may ask for you to contribute additional equity for an owner builder home loan. Also see also construction home loans.
Seniors Home Loan
As we get older many of us are sitting on a home that is worth much more than we paid for it, but at the same time having retired we have less money available to live on.
Seniors Home Loans are a specialist product for seniors where you take a loan against your equity and there are no repayments required – the interest is added to the loan balance each month.
Seniors Home Loans should be used with care and you should seek additional financial and legal advice, as well as involving your family in the decision.
Interest Only Home Loan
With an interest only home loan you only pay the monthly interest on the loan. For owner occupied home loans interest only is generally only available for construction home loans while the house is being built.
For investment home loans lenders may be willing to allow an extended interest only period (often up to 5 years) but paying interest only does carry additional risks that an intending investment home loan borrower needs to understand.
When doing an interest only loan we recommend that you also seek the advice of your accountant.
Interest in Advance Home Loan
Interest in advance home loans are a more specialist type of home loan where the borrower pays a full year’s interest up front, or in advance. This is done following an accountant’s advice and is used to obtain a larger tax deduction in that financial year.
Variable Rate Home Loan
When you take out a variable rate home loan the interest rate on your home loan will go up and down with the market. Variable rate home loans are ideal if you think that rates will go down in the short term.
Fixed Rate Home Loan
When you take out a fixed rate home loan your rate is set for an agreed period – from 1 to 5 years are common, but up to 10 years can be available. Fixed rate home loans are ideal if the borrower thinks that interest rates are going to rise – of course, if they don’t and you have a fixed rate home loan, you may end up paying more than you would with a variable rate home loan.
Line of Credit Home Loan
A line of credit home loan is similar to having a credit card limit. You can deposit funds in and take money out as you require, so long as you stay under our line of credit limit. The interest rate for a line of credit home loan may be higher than other types of home loans.
Refinance Home Loan
Even if when you took out your owner occupied or investment home loan you got the best deal possible, you should review your loan every 3 or 4 years to make sure that as your needs change your home loan is still suitable. Also, lenders are always introducing new and improved loans; so what was great yesterday may well be, well….less great today.
Refinancing your home loan is not difficult and we can assist you through the process.
Ethical Home Loan and Green Home Loan
In these times of environmental change the environment and investment strategies of our lenders is just as important to some borrowers as their own personal choices. We have lenders that are proud to demonstrate their green and ethical credentials.