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Modern day mortgages have a seemingly endless array for features designed to help you manage your loan and pay it off faster than the standard 30 year term. Most Australians have very little understanding of how these features work and which ones would be helpful for them.

Our mortgage brokers will help you to choose the right loan features & consequently a loan product as part of their Preliminary Assessment. This page is designed to help you to understand what these features mean and how they can help you.

 

What features are right for me?
Redraw facility
Making extra repayments
Professional package discounts
Interest Only facility
Salary Crediting facility
Loan portability facility
Repayment holiday facility
Loan Splitting facility

 

Basic Home Loan

Basic home loans are a type of loan that offers a low ongoing interest rate, lower or no ongoing fees and often a reduced or waived application fee., however does not provide a lot of flexibility. This type of loan has minimal features and generally doesn’t offer an offset account, no repayment holidays, no ATM card, no  cheque book or Bpay. If you are after a simple loan that is easy to use and offers a good rate, then the basic home loan would be well suited to you.
1) Which banks offer ‘Basic Loans’?
2) How do I find the cheapest 'Basic Loan?'
3) Who should take out a 'Basic Home Loan’?

 

100% Offset Account

A 100% offset account for a home loan is a simple feature that enables you to pay off your loan sooner without even thinking about it. An offset account is a regular cheque account that has ATM, cheque book and internet access that is linked to your home loan when your loan is setup. Instead of earning interest on the money in your offset account, you save interest on your home loan.This is beneficial because generally the interest rate on a savings account is far lower than the interest the bank is charging you on your home loan. With an offset account they will charge you interest on the balance of your home loan less the balance of your offset account.
1) How does an offset account mortgage work?
2) Is an offset account better than just putting my money into a savings account?
3) Should I put ‘extra’ money into my home loan or into the offset account?
4) Who should get an offset account home loan?
5) Do fixed rate home loans have offset account facilities?
6) Do investment home loans have offset account facilities?
7) Which banks/lenders offer an off set account?

 

Fixed Rate Loan

A fixed rate loan in simple terms is a loan where the interest rate is fixed for part of the loan term, known as the fixed rate period. Fixed rate loans have, in the past, been associated with having firm and inflexible conditions, such as limits to the extra repayments you can make .However, with the introduction of relatively low interest rates and flexible new products, fixed rate loans have become quite popular across Australia, although not as popular as standard variable rate loans and professional packages. Most fixed rate home loans do not allow extra repayments or include redraw facilities.
1) Who should take out a fixed home loan?
2) Can I make extra repayments when I have a fixed rate home loan?
3) Shall I fix for 1 year, 3, 5 years or even longer?
4) Which banks/lenders offer fixed rate home loans?

 

Line Of Credit

A line of credit (LOC) mortgage is a type of loan that allows you to use the loan as your cheque account and allows you to draw down and repay the loan as you choose. It is similar to a credit card in that it allows you to withdraw funds at any time up to a set limit. You are also given a choice to make repayments on either a monthly basis or with some loans you don’t have to make a payment as long as you remain below the limit. A line of credit can be used to purchase most types of properties, whether it be a family home or an investment property. As the borrower, you can use the line of credit to carry out renovations, pay your bills or invest in shares.
1) Do I still need a general bank account?
2) Who would benefit from a ‘Line of Credit ‘ home loan?
3) What are the benefits of a ‘Line of Credit’ home loan?
4) What are the risks with using a ‘Line of Credit’ Home loan?
5) Which banks/lenders offer “Line of Credit’ home loans

 

Professional Packages

Professional Package is a type of loan that caters to people who are borrowing a larger amount of money, usually over $250,000.There is usually an annual fee of $300 to $400 charged by the lender and in return they will offer a significant interest rate discount and discounts on a range of additional services such as cheque accounts, insurance and credit card facilities. Depending on the lender you may also be able to receive discounts on personal loans, margin loans, share market trading and also receive premium service from the lender. Overall for people who are looking to get more than just a simple home loan from their lender the pro packs can offer an excellent way to bundle several products together and save.
1) What are the advantages of a ‘Professional Package ‘ home loan?'
2) Which banks/lenders have professional packages?
3) What are the ‘annual fees’ I have to pay with a ‘Professional package’ home loan?
4) Who is a ‘Professional package' home loan suitable for?
5) Who should NOT get a ‘Professional package” home loan?

 

Low Doc Loans

A low doc loan or low documentation loan is a flexible solution for the self-employed. It is designed for borrowers who have income and assets but are unable to provide financial statements or tax returns as evidence of their income .Low doc loans rely on a self-verification method whereby you state your income on an income declaration form without the lender verifying your income using documents .This means applicants do not need to provide any proof of their income. However, the banks will complete their normal credit assessment and will check that you can afford the loan using the income you have declared.
1) Who is a ‘Low Doc’ home loan for?
2) Which banks/lenders provide ‘Low Doc” home loans