Types of Loans

Split loans

These loans combine the features of various products and can have the security of a fixed rate loan and the benefits of a variable loan.

They can also combine a standard term loan and a line of credit. For example part of the loan can be borrowed at a fixed interest rate with the remainder on a variable rate.

These loans can be split into as many products as you want to reflect your personal circumstances.

Line of credit

These loans are another 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 and your current loan structure doesn’t allow for withdrawing your equity, 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.

Bridging loans

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.

Non-conforming Loans

These loans help those clients who have had issues with finances, mainly due to unexpected changes in circumstances, eg temporary unemployment or short term inability to pay debts. Small Local Brokers can identify the lenders who can match your personal circumstances. The value of your property and your capacity to repay will determine a non-conforming loan, however these loans can attract a higher than normal interest rate.

SMSF loans

Did you know you can take control of your retirement by using your superannuation to borrow money and invest in property of your choice?

Our expert team of finance professionals will walk you through the entire process hand in hand. We can even provide a list of suitable investment property specialists to take the guesswork away.

Things you may not know:
• You can combine your superannuation with other family members to allow you to buy property within the fund.
• Property owned by the super fund sold at the right time may have zero capital gains tax applied.
Self-managed super funds are the fastest growing segment in the market – for one main reason – control!
Don’t confuse your SMSF with personal investment. They are separate entities.
• Not everyone is suited to an SMSF
• A balance of approximately $150,000 is often a benchmark for a minimum balance.
• You will need to complete an annual tax return for the fund.
• Costs on set up for the Bare Trust or Instalment Trust can vary greatly depending on who you use.

Self employed

Working for yourself instead of a company or business is not always easy. Self-employed people may have irregular incomes and find it difficult to make time to organise their paperwork.

The banks’ strict lending criteria make applying and securing a self-employed loan time consuming and overwhelming.

Small Local Brokers can help discuss your situation and offer you a range of borrowing options to suit your needs.

Deposit bonds

A deposit bond is a guarantee to the vendor by an insurance company that they will receive their 10% deposit even if the purchaser defaults on the contract of sale. You, the purchaser, are able to prove this guarantee to the vendor by paying a small premium to the insurance company.

All purchase funds are paid at settlement. In the ordinary course of events, settlement takes place, the purchase price is paid in full and the deposit bond simply lapses.