Home Loan Types

An offset account is usually a transactional account linked to your home loan. The balance held in this account “offsets” the balance in the mortgage, helping to reduce the interest paid and overall term of the loan. Many lenders offer a 100% offset account as a feature with standard variable home loans.

Investment property is purchased with the intention of earning returns either from rental income, or income from future resale of the property. An Investment property can be in the nature of both long-term investment and short-term investment.

In this fluctuating market, making a long-term investment is quite tricky and finding a right property is time consuming. Finding the best investment loan important as same as finding the right property. An investment property is about securing a financial future, so here at Finconnex we help you to understand and research the property investment market before anything else.

After getting a professional degree, most of the medical professionals wants to apply for home loans early. The banks and lenders offer special home loan for medical professionals and are considered to have low risks of defaulting in payment of instalments. Thus, the lenders offer exclusively to medico professionals which are not available to other individuals.

The offer includes: –

  • Discounted interest rates
  • LMI waiver
  • Fee waiver
  • Higher LVR (borrowing can be more than property value)

Medico is not available to some medical professionals such as psychologists, medical research scientists and naturopaths. However, they can be eligible to a reduced interest rate who have strong sufficient savings and strong employment history.

Some of the Accounting and Legal professionals are eligible to access the discounted interest rates and fee waivers due to their profession. These professionals have relatively strong income earning capacity and thus lenders are providing strong incentives to this type of Loan packages.

For More information please contact.

An owner builder loan is designed for those who wish to build their own home without the help of a licensed builder. Many lenders consider these mortgages to be high risk so not many lenders will accept applications for these types of home loans.

Additionally, the loan amount for owner builder loans is often restricted to 60% of the total land value and construction cost. The lender will take into consideration the value of the vacant land as part of the valuation total. The lender will look closely at the quotes provided to them that form the estimated cost of materials and labour required to complete the construction.

An SMSF loan is a home loan used by a self-managed super fund (SMSF) to buy investment property. The returns on the investment – whether that’s rental income or capital gains – are funnelled back into the super fund, increasing your retirement savings

construction loan is a type of home financing aimed to help those who are building their house from scratch. It does not work the same way as a regular home loan, which can only be used when buying an established property. A construction home loan covers the expenses you incur as you build your own home

Home Loan Information

Following the lodgement of a home loan application, borrowers are often keen to know what will happen next and how long it will take for them to receive the verdict. There is no one-size-fits-all answer however, a perfect packaging deal✅ is the key to keeping the approval time short.

🗣The amount of time it takes for you to receive a response to your home loan application can vary. An answer is usually received between two days to two weeks, depending on a range of factors.

🗣For straight forward vanilla application it’s 48 hours to a final approval. But, depending on how complex the circumstances are, it can take longer than that..

🗣Before offering conditional approval, your potential lender will need to make an assessment of your application and conduct a valuation of the property. Of course, having a valuation that is acceptable to the lender done in advance will expedite the process.

🗣There are a few things that can result in an application not being approved based on valuation, like zoning, property size, or if the condition of the property is poor enough that major repairs would be required before it could realise its market value.

🗣The lender will also assess your capacity to repay the loan amount you have requested. This is where all of the information about your salary and liabilities come into consideration, and where accurate and complete information is essential.

🗣The credit review by the lender can include a bit of to-and-fro between the customer, the broker and the lender due to the lender’s request for further information as that credit review takes place.

🗣Your potential lender makes an overall judgement of you as a borrower and the complexity of your financial history will affect how long this takes.

🗣The biggest red flag is non-disclosure of liabilities or adverse information on a credit history, So it’s always a best idea to fully disclose and be open with your finance broker, so he/she can take precautions from the beginning..

🗣The complexity of the application process is a great reason why you would sit down with a reputable broker, as they can just explain all of that to you.”

👉🏼Following the submission of an application, you can expect your finance broker to be in touch with you to update you on progress, and to notify you of the outcome. If your application is approved, your broker will also advise you of when to expect a formal letter of approval from your lender.

What are Fixed rates Loans?

When purchasing a property, borrowers can decide between fixed-interest loans that maintain the same interest rate over a specific period of time, or variable-rate loans that charge interest according to market rate fluctuations.

Fixed-rate loans usually come with a few provisos: borrowers may be restricted to maximum payments during the fixed term and can face hefty break fees for paying off the loan early.

However, locking in the interest rate on your home loan can offer stability.

“For those conscious of a budget and who want to take a medium-to-long term position on a fixed rate, they can protect themselves from the volatility of potential rate movement.

Fixed rates are locked in for an amount of time that is prearranged between you and your lender.

“When you apply for a fixed rate, at the point of application you can pay a fixed rate lock-in fee which will, depending on the lender, give you between 60 and 90 days from the time of application to settle the loan at that fixed rate,” the broker explains.

“You pay a fee to protect your interest rate. Alternatively, you can choose to lock the rate in at the time of actual approval.”

 

What are Variable rates Loans?

Variable home loan is a home loan on which the interest rate can fluctuate, varying up and down at any time.

Changes up or down in a variable interest rate are based on factors such as RBA Cash rates changes in market interest rates, or business decisions made by your financial institution.

In terms of your home loan repayments, a variable rate loan means that the monthly loan payments will change to match any change in the interest rate applied

Offset Account:

An offset account is a transaction account which is linked to your home loan and which has normal transaction account functionality.

The benefit is that the money in your account is offset daily against your loan balance, and this will reduce the mortgage interest charged accordingly.

While most offset accounts will offset your loan balance in full, some only offer a partial offset.

Redraw Account:

A redraw account is a feature which enables borrowers to withdraw money they have already contributed to pay off their loan.

The balance of this facility consists of whatever extra payments the borrower has made towards paying off their loan.

In the simplest terms, the LVR is the percentage of the property’s value, as assessed by the lender, that your loan equates to. So, if the property you want to purchase is valued at $500,000, and you need to borrow $400,000 to pay for it, the loan is 80 per cent of the property value, making your LVR 80 per cent.

To qualify as a first home buyer, you must be purchasing the first home you or your spouse have owned or co-owned in Australia,although there are some exceptions.

You must also move into the property within 12 months, and live there for at least six continuous months.

You must be:

  • an Australian citizen or a permanent resident of Australia
  • at least 18 years old.

It is term used to describe the amount of money that is borrowed for the Mortgage. The Principal Amount that is owed will go down when borrowers make a regular monthly Repayments.

Co-Borrower is having another borrower to join on the loan application. Their Income, Assets and credit score can help you qualify for a loan and get lower interest rates. Co- Borrowers are equally liable to pay back the loan.