Homeloans Plus in Adelaide South Australia
offer a wide range of home loan options
Standard Variable Rate Loans
This type of Home Loan is the most common loan taken out by borrowers.
The interest rate is subject to movement if interest rates go up or down as governed by the RBA. These loans are usually flexable offering redaw facilities and allowing borrowers to pay additional repayments to their home loan without penalty.
Some Banks also offer a Basic Variable Rate Loan, they may offer a lower interest rate than the Standard Variable rate but have less features like no redraw or lump sum options.
Fixed or Split Loans
A fixed interest loan allows you to fix your interest rate for a period of time, usually up to 5 years.
A Split loan allows you to split your home loan to fix a certain portion of the loan, but stll keeping the remainder of the loan as a variable rate loan.
The advantages of Fixed Rate Loans is knowing your monthly repayments will not change for the period of the fixed rate and in times of rising interest rates give you some peace of mind knowing you are locked in at a certain rate.
The disadvantages are that you can be restricted in making any lump sum payments and not having a redraw facility. It can also be very expensive should you break your fixed rate contract, by selling or refinancing your property before the fixed rate contract has expired.
By Splitting your home loan you retain the flexibility of the variable rate loan and still have a portion of your loan at a fixed interest rate.
When your fixed interest rate period finishes your loan will usually revert back to the standard variable rate.
Line of Credit Loans
Line of credit loans give the borrower the flexibility to draw funds from their loan up to their line of credit facility. This type of facility is best suited to people who have excess dissposable income and may require funds at times to cover business expenses or investment opportunities.
Repayments are based on the interest charge and interest is calculated daily on the outstanding balance. In most cases the facility has no term so unless additional repayments or lump sum payments are made the loan balance will stay the same.
Line of Credit Loans should be used with caution, if you require more information about this type of loan or any type of home loan talk to the experts at Homeloans Plus.
Honeymoon Rate Loans.
The interest rate on these types of loans has been discounted usually for the first 6 to 12 months. The rate then converts back to a standard variable interest rate. Before deciding on a Honeymoon rate loan make sure you are not being penalised with a higher variable rate for the life of the loan.
Non Conforming Loans.
Non conforming loans may suit customers who have some sort of credit impairment or do not fit into the traditional 'bank' product. Interest rates will vary depending on the circumstances of each application.
Lo Doc Loans.
Lo Doc Loans may suit self-employed customers who have not yet completed the their financial tax returns. Proof of income for these types of loans is not required.
No Deposit loans
Many people, including first home buyers, find it increasingly hard to raise a deposit. Many lenders now offer home loans up to 100% of the properties value. However buyers will need to cover all costs.
This type of loan allows you to buy a new property before you have sold your existing one. Bridging loans are subject to the amount of equity in your existing property and you may not need to make repayments on the new loan until your existing property has been sold. ( Lenders will give you between 6 to 12 months to sell your property)
100% offset loans
Put your savings into an acount which is linked to your home loan. The interest you earn on your savings balance offsets the interest you pay on your home loan. This could save you money, and help you pay your home loan off sooner.
Reverse Mortgage Loans
This type of loan is available to you if you are 60 years of age or older. It allows you to unlock the equity in your home for any purpose. Importantly, no repayments are required on the loan. Instead the loan accrues interest and is repaid upon sale of your property. Naturally for more information on all types of loans please give Homeloans Plus a call.
Personal loans are available for just about any worthwhile purpose such as purchasing a new car or debt consolidation.
A construction loan process is quite different to the established home loan. Most of our lenders including HomeStart offer the construction loan. There are many advantages to building your home, such as a saving on stamp duty. If you are interested in a construction loan please do not hesitate to call the team at HomeLoans Plus.
Home Equity Loan
The equity in your house is simply the difference between what your property is worth and what you owe. You may be able to access this equity at any time. Equity loans are for consolidating debts, buying a car, home renovations etc.
The redraw facility is one of the most widely used and popular loan feature available. The redraw facility allows you to make extra repayments into your loan account and then access these extra funds as it's required. Talk to your mortgage advisor from Homeloans plus for more information.
* Terms and Conditions apply