Fixed Rate Home Loan
Fixed rate loans allow you to fix the interest rate for a specified period, usually one to five years, sometimes up to 15 years. At the conclusion of the agreed fixed rate period the interest rate reverts to the standard variable rate, or you may renegotiate with the lender for another fixed rate term. The main advantage of these loans is that the borrower has a set monthly repayment. The disadvantages are that you are limited to the amount of extra repayments allowed during this period (generally there is a limit) and also if the borrower sells their home within this period they may incur a break cost fee.
Low Doc Home Loan
Self Employed and Need a Loan?
If you are self employed, low documentation loans provide flexible finance options. They are specially designed for customers who have regular income and assets, but are unable to produce documentation such as financial statements and in some circumstance, tax returns. If customers can prove their self employment income they may borrow funds without going through the hassle of producing standard income verification. At Astute we will ensure your circumstances fits the lenders criteria before we submit your loan for approval, as all lenders have varying and ever changing requirements.
Line of Credit
Line of Credit Loan’s offer the maximum flexibility. With this type of loan, you deposit your entire income into your loan account to reduce your daily interest. You then re-draw money from the loan account as you need it. The money you redraw for living expenses can be withdrawn directly from the loan account or paid for using a credit card with up to 55 days interest free. On the credit card statement due date the full amount is repaid by drawing the money from your loan account. You can set this up automatically through your bank so your credit card is paid out at the end of every month. It should be noted that if you are not careful with this type of loan you could be left owing the same amount of money after 25 years. Many investors also use this type of loan for share purchases and to receive share dividends.
Variable Rate Home Loan
The standard variable rate varies throughout the term of the loan and generally has more features than other loan types. If interest rates fall your loan rate will come down, and alternatively if rates increase so will your loan rate. On a variable interest rate loan, you can make additional repayments without incurreng penalty, which means you can pay your loan off sooner.
Professional Package Deals
For clients looking at lending more than $250 000, an option is a professional package. On this loan package, your interest rate can be discounted by up to 1% and in most instances you will have only one low annual fee with the establishment and valuation fees generally waived under this package. The savings certainly add up over the lifetime of the loan.