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Financial Services in Australia | Home Loans | Business Loans | Commercial Loans | Business Finance | Home Loan Calculators | How Much Can I Loan?
X Inc Finance - Home Loans
In Australia, we enjoy one of the most competitive home loan markets in the world. There are literally thousands of home loan products available to choose from and many lenders vying for your business. X Inc Mortgage Brokers give you access to many of these loan products and you literally can save you thousands of dollars by using the right one. Here is a quick guide on what is available.
Basic or "no frills" home loans
These are a variable rate home loan with a relatively low interest rate. There are usually no extra "bells and whistles" which are likely to add to the price.
Standard variable rate home loans
These are the most popular type of loan in Australia and offered by most lenders. It's a variable rate loan, like a basic home loan, but offers a few more features and flexibility so the rate is slightly higher.
Fixed-rate home loans
These home loans have an interest rate which is set for a particular term — usually one to five years so your repayments are set for that period. At the end of the term you can lock in another fixed rate, switch to variable or go for a split loan.
Equity line of credit home loans
These loans let you use the equity in your home to finance other things such as renovations or to invest in other assets such as shares or funds. You generally need to have a large deposit or good equity in your home to be able to take advantage of this.
Packaged home loans or Professional Packs
Packaged home loans are offered by banks to people in a particular profession or those borrowing over a certain amount — sometimes it's over $150,000 but more commonly over $250,000. They were originally introduced to cater to high income earners but have now become more widely available to certain professional groups, those who need to borrow a higher amount or those who have a good relationship with the bank. Features include rate discounts, reduced ongoing fees, fee-free credit cards and transaction accounts.
No deposit home loans
Normally you have to save at least a five percent deposit before applying for a loan. With a no-deposit loan you can borrow 100 percent of the purchase price. Some lenders go as high as 107 percent so you can also borrow the money to pay for the extras such as stamp duty.
Non-conforming home loans
Non-conforming lenders will lend money to people who don't meet the banks' strict lending criteria including:
- Self-employed people likely to have difficulty verifying their last three years of income.
- Older borrowers (over 55) for whom a 25-year loan may not be appropriate because they are close to retirement.
- Those who wish to borrow more than 90 percent of the property's value.
- People with a bad credit history, for example those with a history of late repayments, loan default or possibly even bankruptcy.
- Seasonal or casual workers who have infrequent or variable income.
- New migrants with no borrowing record.
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