Basic home loans are a type of loan that trades off flexibility and in return offers a low ongoing interest rate, lower or no ongoing fees and often a reduced or waived application fee. This type of loan has minimal features and generally doesn’t offer an offset account, repayment holidays, ATM card, cheque book or Bpay. If you are after a simple loan that is easy to use, then the basic home loan would be well suited to you.
Offset account can save you money if you tend to carry a larger balance in your transaction account. They typically come with an ATM card, cheque book and internet access like a regular account. But the balance is automatically subtracted from your mortgage balance when the bank calculates your monthly interest payment.
If you’ve paid off a significant amount of your home loan, a home equity home loan could unlock a range of new opportunities:
Equity loans are very flexible. In most cases, you can use as little or as much of the loan as you need, and only when you need it. With the rapid rise in Australian housing prices, more and more home owners are tapping this inexpensive source of credit.
Banks just love to make it hard for anyone with a business to borrow money. They want tax returns, notices of assessment and then letters from your accountant, making applying for a loan incredibly difficult. To get a self-employed home loan, the majority of lenders require you to be self-employed for at least two to three years, however some can consider people who have been self-employed for only one year. If you self-employed less than a year, you still able to borrow. Please give us a call and we will give you more information.
Your interest rate is fixed for a period of time that you nominate (generally 1-5 years) so your repayments will remain the same irrespective of economic cycles. While it is easy to budget your repayments, you may also have restrictions regarding changing the loan, including making extra repayments. It is also worth reviewing your loan when your fixed term expires as usually the interest rate will revert to a standard variable rate which is often higher than other available variable rates.
Having a bad credit score doesn’t mean that you’re not able to get into your own home. It just means that you will have to approach lenders outside of the big banks. We understand that people can find themselves in all sorts of financial circumstances and we have a mortgage to help. The process of applying for a ‘bad credit’ home loan is a little more involved than for a traditional loan. If your credit history is not great, then you will generally have to have a larger deposit and the rates will be higher than for other mortgage types. You will also have to check that all of your outstanding debts are paid prior to submitting the application. However, a ‘bad credit’ mortgage presents a real opportunity for you to get your finances back on track and own your own home.