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There are many types of loan products for a range of home lending situations and Gold Star Finance will help you to find the one that suits you. However, the following information will help get you started.
Basic Variable
Standard Variable
Discounted Variable
Fixed Rates
Lines of Credit
Split Facility
Investment Loans
Low-Doc
Non-Conforming Loans
Reverse Mortgage
Personal Loans
Leasing Finance
Commercial and Business Loans
Basic Variable
These are for borrowers who do not require anything more than a basic home loan without the features. Basic Variables often have a lower interest rate than other loans because of their simplicity, as well as offering flexibility of repayments, including early repayment without penalty.
Standard Variable
Some extra features. This loan has a variable interest rate and offers flexibility in repayment options. It also generally allows early repayment without penalty, and has mortgage off-set, redraw and portability to a new security property if you move. A standard variable loan usually allows you to switch to a fixed interest rate when you choose.
Discounted Variable
This loan is essentially a standard variable with a discounted interest rate for new borrowers, typically for the first 6 to 12 months of the loan term. After that period the interest rate reverts to the current standard variable rate. Because of the discounted rate, lenders generally rely on loyalty from the borrower and charge an early repayment fee if the loan is repaid in full in the first few years.
Fixed Rates
By selecting a fixed rate, you can be sure of your repayments for a certain amount of time. You can fix the rate for periods from 1 to 10 years, after which you can fix it again or revert to the interest rate of the day.
Lines of Credit
Lines of credit, or equity loans, offer a loan ‘limit’ which you need to be under at all times. The equity loan can be used to reduce interest by placing salary and savings into the account and drawing on funds as required. This loan gives you the capacity to redraw up to the limit at any time, which can be very useful but is not without risks as the extra financing is always available. The maximum loan to value ratio for this type of loan is generally 80%.
Split Facility
You may want to split your loan into two or more parts, and some lenders will allow you to do this. Examples of splits include making part of your loan ‘fixed’ and part ‘variable’ or, including an equity loan as part of your lending to give you access to some funds at short notice.
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Investment Loans
Residential investment property loans are generally available under similar terms and conditions as most home loans.
Low-Doc
This is for self-employed applicants who cannot provide the normal financial information that lenders require. Generally you advise a lender how much you earn and sign a Statutory Declaration assuring your ability to meet the loan repayments.
Non-Conforming Loans
A variety of reasons may mean that you may not be able to meet the standard requirements of a loan, such as age, pensioner status, unusual income, paid or unpaid defaults. In this case, loans of 85% of the value of the property can be available, though interest rates can be higher.
Reverse Mortgage
Reverse mortgages are, in a sense, the opposite of a mortgage, as the name suggests. Appropriate for people aged over 60, these mortages allow you to borrow cash against the value of your home. You are not required to make any repayments, but fees and interest mean that the debt grows over time.
Personal Loans
Personal loans are a quick and easy way to get finance for just about anything – from travel and home renovation, to education and wedding expenses. They generally have a higher interest rate than home loans
Leasing Finance
Leasing loans allow you to borrow 100% of the value of equipment necessary for your business. They are generally fixed interest rates for a fixed term.
Commercial and Business Loans
Loans for business and commercial reasons are usually similar to the products for residential loans, including standard variable, fixed interest rates and lines of credit.
For more information on loans and services, please contact Gold Star Finance Loan Brokers on 07 3343 9087
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