Types Of Loans

Want to Learn More About Different Types of Loans? With different types of loans available, it’s important to select the most appropriate one for you.

If you want to buy a plot of land, a vacant-land purchase is the way to go. We can source loans up to the maximum available loan term, with low deposits.

If you plan to build, you can choose a construction loan. Most lenders require building to start within a specified time frame. Draw down the loan in stages, so you don’t have to pay interest on the whole amount.

There are several different ways to fund your renovation, with the most popular being home equity. This involves you borrowing against the current value of your home.

You can draw down equity through a flexible line of credit loan, with access up to an approved limit. Pay interest only on the funds you use, and re-borrow unused funds without having to re-apply. It’s advisable to make repayments to reduce the principle, ensuring long-term serviceability.

Lock in selected interest rates with a fixed loan, or take your chance on fluctuating interest rates with a variable loan. Talk to your broker about the best one for you.

This loan requires minimal paperwork, rather than a full-documentation traditional loan. Low doc loans may suit the self-employed and those without full-time salaries.

If you’ve outgrown your current loan, a broker can help you find one that better suits your situation – offering more favourable interest rates, consolidating debts or giving equity access, for instance.

The principal is the amount you borrow from your lender, while the interest is the cost charged by the lender to borrow the money.
By chipping away at the principal, you are reducing your balance and the overall cost of the loan at the same time.

An interest only loan means you pay less up front, but your outstanding balance won’t be reduced. You will also pay more interest over the life of the loan.
When the interest only period finishes, repayments are likely to go up to ensure you start paying back the principal balance.

An equipment loan allows you to buy and own a business asset outright, with the equipment or asset used as security.
As owner, you may be able to claim GST input tax credits along with interest expenses and depreciation. A balloon payment may apply at the end of the lease.

A split home loan allows you to split your mortgage into two parts – one part fixed interest rate, the other part variable. You can determine the proportion of each.
This gives you the security of set repayments, on one part of the loan. You are still free to make bigger repayments on the other segment, along with redraw and offset facility.

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Norwest NSW 2153 Australia

PO BOX 6488, Norwest 2153 NSW