Standard Variable Rate Loans |
Offers a facility when the relevant interest rates change accordingly with the movement of the RBA official cash rate or the lender. It usually comes with a variety of features, including the option to fix or split a loan, the ability to make additional repayments as desired and an optional redraw facility (on those additional repayments).
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Basic Variable Rate Loans |
Offers a lower interest rate, but comes with fewer features although the borrower often has the option to pay for any additional features, as required.
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Line of Credit Loans |
Offers an interest-only variable rate loan that allows a borrower to borrower against the equity in a home and combines this with a transaction account (with cheque book). Interest repayment is only charged on the amount of money borrowered and outstanding.
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Home Equity Loans |
Offers a facility which gives a borrower the advantage to unlock the equity in an existing property for other opportunities, such renovations, investments in shares or purchasing an investment property or a business or holiday.
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Reverse Mortgage Loans |
A facility available for borrowers to provide them with an ongoing income or a lump sum. The facility loan is taken against equity in the borrower's home, and usually no repayments are required, but interest will capitalize on the loan.
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Principal and interest Loans |
Offers a borrower the most common type of mortgage. It means that each repayment is made up of a sum in part payment of the principal and a sum in part payment of the loan’s interest.
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Interest-only Loans |
When interest is paid off during the loan period. At the end of this period, the borrower owes exactly the same amount as borrowed initially and this amount must be paid out in full.
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Fixed Rate Loans |
Offers a borrower a facility that keeps the borrower protected against interest rate changes for an agreed period of time, which provides certainty of repayments on the one hand, but means a borrower cannot take advantage of a fall in interest rates during that period. Some first home buyers like this option for the first one to five (1-5 or 10) years of their loan, to provide them with peace of mind and affordability.
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Combination or Split Loans |
Offers a borrower the flexibility of a variable rate loan and the certainty of a fixed rate loan. This means that a borrower can take advantage of when rates drop, but also remain protected when rates increase.
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Low-Doc Loans |
Products have been developed to cater for borrowers who are self-employed and investors that do not meet typical lending criteria, including no up to date financials.
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Lite Doc Loans |
Products have been developed to cater for borrowers who are self-employed and investors that do not meet typical lending criteria, including having little supporting documentation.
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No-Doc Loans |
Products have been developed to cater for borrowers who do not meet typical lending criteria; including those who are self-employed, investors, pensioners with impaired credit history and have little supporting documentation but have equity in their brick and mortar security/s.
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Non Conforming Loans |
Products have been developed to cater for borrowers who do not meet typical lending criteria, including those who are self-employed, have an impaired credit history, have little supporting documentation or savings history or who do not have a deposit and/or other situations that do not fit normal lending criteria or requirement.
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Mortgage Offset Loans |
Offers a borrower an All-In-One Loan that links to an everyday transaction account to a borrower's home loan. This means that all of a borrower's money is kept in a borrower's loan account, which can reduce the amount of money owed and in turn the interest paid. Borrower's are able to redraw expenses as needed via the transaction account facility.
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Commercial Business Loans |
A product that is non regulated and it can be for all types of loans that are not regulated under the consumer credit code such as purchase, refinance, business, cash flow, leasing and development.
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Construction Loans |
Construction loan is different from a normal home loan because it can be drawn in stages rather than a lump sum at settlement. These stages are in line with the stages of construction. The loan is normally at a variable rate during construction.
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Private Funds Loans |
A product that is non regulated and it can be for residential investment or commercial, development and business borrowing secured by bricks and mortar up to 80 % LVR in some cases. Being a registered commercial mortgage only being 1st or 2nd or 3rd and caveat.
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Professional Package Loans |
Product for high income earners for loans above $250,000 usually offer a discount on the Standard Variable Rate and plus other benefits inclusive in an annual fee.
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Short Term Loans |
Loans for borrowers who need a quick solution and have exit strategies being secured by brick and mortar and non regulated solemnly as registered commercial mortgage only being 1st or 2nd and caveat for a short period.
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Bridging Loans |
Loans for borrowers who need a quick solution and have exit strategies being secured by brick and mortar and non regulated solemnly as registered commercial mortgage only being 1st or 2nd and caveat for a short period.
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Mezzanine Loans |
This commercially and non regulated product is used as a top up after the first mortgage. Can be used for direct purchase, refinance, construction or developments.
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Personal / Business finance (Vehicle) |
Business finance (commercial hire purchase, lease or chattel mortgage) is a product available to both company & individuals who will be purchasing goods predominantly for business use (ie more than 50% business usage). For example, taxi drivers, mobile sales reps, couriers, etc could qualify for business finance.
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Car Loan |
A car loan is one of the simplest ways to finance a new car. A car loan differs from a general personal loans in that it is secured against the new car. This means that when the vehicle is disposed of (sold, traded in or written off by the insurance company) the car loan must be paid out. The advantage is that interest rates are generally less for car loans than what a borrower would expect for a personal loan.
This is because the finance company views it as less of a risk than a personal loan (due to the fact that if a borrower defaults on a car loan, the finance company will as a last resort attempt to repossess the car whereas with a personal loan they can't do this).
Car loans are generally taken by individuals as opposed to businesses and can be used to finance the full cost of the purchase including the on-road costs, insurance, warranties and even loan protection for the car loan itself.
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Operating Lease |
Operating Lease is simply a rental agreement. A borrower avoids the risks associated with ownership and have no residual value liability. At the end of the borrower's operating lease agreement the borrower may simply return the vehicle.
Only available through businesses, the benefits of an operating lease are that working capital is maintained; lease rentals will be fully tax deductible if the vehicle is used to generate taxable income and there is no resale value risk as the financier will own the vehicle at the end of the term of the operating lease. Also very important feature with an operating lease is that the finance cost is known for a fixed period of time.
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Car Finance Lease |
A Car Finance Lease is one of the most straightforward financing options for a business when purchasing a new or used vehicle. Low or no deposit terms for the car finance lease may be available depending on circumstances and payments may be up to 100% tax deductible depending on tax status.
A car lease differs from a Commercial Hire Purchase where the interest payable and depreciation is deductible.
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Novated Lease |
A Novated lease has become an increasingly popular form of vehicle financing over recent years. A novated lease combines many features of more traditional forms of vehicle finance to deliver some attractive benefits for both employers and employees. A novated lease is an agreement between an employer, the employee and the financier, where the obligations to meet the repayments under the finance lease is with the employer. With a novated lease agreement, the employee owns the vehicle and allows the employee the right to take it with them should the employee change jobs and, structured correctly, there may be tax advantages with the employee's remuneration package. As with other leasing structures, repayments with a novated lease are flexible and amounts depend on the term, interest rate, amount borrowed and the residual payment.
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Hire Purchase (CHP) |
Commercial Hire Purchase (CHP) agreement is a simply contract where the financier (the ‘owner’) allows the borrower (the ‘hirer’) the right to possess and use a car or other vehicle in return for regular payments. A balloon payment (a final payment made at the end of the term - ideally this payment should be no more that the estimated value of the car at that time) is optional with a hire purchase agreement.
When the final payment of the commercial hire purchase is made, the title to the goods is transferred to the borrower. With a CHP there may be significant tax advantages as the borrower may be able to claim the interest repayments as well as the depreciation of the asset whereas with a standard lease the actual repayments are the tax-deductible part of the equation.
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