There are various types of residential loans, all offering different rates and features
A loan with lower repayments for the first six to twelve months. After the ‘honeymoon’ the loan becomes a standard variable loan and the repayments increase. Make sure that you can meet the higher repayments for the remainder of the loan. You could also be faced with a fee at the end of the honeymoon period to switch to another loan type.
Basic or “no frills” loans
A variable rate loan with a relatively low-interest rate. The low rates for these loans could mean that you can repay the loan faster because there are no extra options available. Repayments will rise and fall with interest fluctuations. Check that the loan conditions will suit your circumstances and your ability to make repayments.
Standard variable rate loans
These loans are the most common type available. The variable rate loan offers more features and flexibility than the basic or “no frills” loan, so the rate is usually slightly higher. The extra options (for example a redraw facility, the option to split between fixed and variable, extra repayments and portability) should be taken into account when choosing your type of variable loan. Repayments will vary as interest rates fluctuate.
Fixed rate loans
These loans are set at a fixed interest rate for a specified period usually one to five years. The advantage of allowing you to organise your finances and repayments without the risk of rising interest rates is offset by the disadvantage of not benefiting from a drop in rates. At the end of the term, all fixed loans automatically revert to the applicable variable rate. You have the option to lock in another fixed rate for a new term, switch to a variable or go for a loan where you split with a percentage fixed and the remainder variable.
Equity line of credit loans
These loans are a great way to access the equity in your home to use for things like home renovations, investments or other personal purchases. Repayments on a line of credit loan are determined by the interest rate applicable at that time. If you have sufficient equity in your home, you will need to make a separate application for a line of credit loan. You have the added advantage of being able to make unlimited deposits/repayments as your repayments are not set. You must check the conditions of these loans as they are sometimes more expensive than standard products.
Professional home loan packages
These loans are offered to provide an all-in-one home loan package. They offer interest rate and fee savings on your home loan, credit card and transaction accounts and some lenders also waive the annual fees for your credit cards. An annual fee ranging from $120 to $395 is usually applicable on these loans. Professional packages can also offer amazing flexibility, with some banks willing to waive product switching fees when changing from a variable to a fixed rate or converting a principal and interest type loan to an interest-only loan.
A bridging loan may be necessary to cover the financial gap when buying one property before the existing one is sold. This finance is generally secured against your property as you are utilising the equity in your existing property. Usually, bridging loans are short-term and more expensive than other types of loans. Our role as your mortgage specialist is to provide you with a comparison of various loan options from a panel of lenders and assist you with choosing the right loan for your circumstances.
- Fixed payments and interest rates
- Specifically designed to coincide with your cash flow
- Customised contract outlining the terms and repayments
It takes just 2 minutes to complete our online application enquiry
Our financial experts will contact you within 24 hours
We help you decide the best loan option available for you
We find the most suitable Lender out of our panel of nearly 50
How does it work?
1. We get to know you
Firstly, we want to know a little more about your financial situation. This is so we can correctly determine how much money you are capable of borrowing.
2. Help you make a decision
We do some research and assess your financial situation. This is so we can recommend and offer you advice about what loan agreement we think will work best for you.
3. We do all the paperwork
To relieve your stress during the process, we take care of all the paperwork. We ensure that all information is correct and lodge the application on your behalf.
Have now purchased 3 vehicles all using MFL to organise finance, great rates and unbelievable service, wouldn't go anywhere else.
We got our home loan through MFL. It was easy and all their staff are so helpful and friendly.
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