- Sometimes Lenders have specials for first home loan
seekers, otherwise, the loan products are the same for everyone.
- Some loans have higher loan to value ratio's
(LVR) so that first home owners can borrow more if they do not have a
- Lenders expect to see at least 3%-5% deposit through genuine savings
- Some Lenders have a discount on the Lenders Mortgage Insurance (LMI)
premium for first home owners
- property - investment loans to purchase real estate property
(houses, units, land)
- shares & managed funds and other - you
can raise a loan against your home to invest in a share portfolio or managed funds provided you have sufficient
equity in your home. Some Lenders like to see a proposal from a Financial Planner before they will
release the funds.
- Building a new home on land that you have bought or own
already or through purchasing a house and land package. Ofen the land will settle first and then
- You generally need the 5% deposit to pay the Builder on
commencement of construction
- Consturction loans generally are paid by progress
payments (5) as set out in your building contract
- A loan against vacant land. Some Lenders like to
know that you are going to build on the land within a certain amount of time, others are not
- The purchase of a property having seen the plans only,
as construction has not yet begun or not yet completed.
- A deposit is usually required and can sometimes be a
negotiated figure(10%, 5%).
- A deposit bond is often used as the construction period
may be extended and you may not want to tie up your money. Not everyone accepts deposit
- Usually a loan increase to renovate your home in some
way. So long as there is no construction or structural changes, the funds are provided in a lump sum for
you to manage (unlike a constrcution loan with progress payments which the Lender manages)
Low document loan
- A loan for self employed people who do not have up to
date financials. In more recent times, polices have changed around dow doc loans and Lenders now want to
see 12 months BAS statements or 6 months trading account statements or an Accountants
- Loans for people who have credit issues - discharged bankrupts, judgement, defaults
- Specialist Lenders who will give borrowers another financial chance.
- Interest rates and fees generally higher due to being more risky
- A loan available for people over 60 years who wish to
generate some cash from their home.
- The loan does not have to be paid back as interest is
capitalised on top of the loan
- Repayment occurs when either the loan is refinanced,
the borrower passes away or the loan is repaid
- Can be for any worthwhile purpose
Super Fund (SMSF) loan
- Provides a loan so that a Superannuation Fund can
own a property.
- There are strict conditions applied, such as LVR levels
and trusts need to be set up
- A loan for a property such as an office, shop,
more than 3 unit developments, factory, industrial land etc
- Usually a higher interest rate than a residental
- Different Lender assessment and affordability tests
- Usually associated with Plant and Equipment loans for
commercial purposes, eg Chattel Mortgage, High Purchase etc.
- An insurance policy that guarantees that at settlement of your property, the deposit
will be paid if you default on paying the deposit.
- Popular with off the plan purchases and constructions where there may be an extended
period before building completed. Frees up your funds rahter than having them tied up as a
- A deposit bond is an assurance for the Vendor and does not take you off the hook
as being liable for the deposit when due
- If you default, the deposit would be paid by the insurance company and the insurance
company would then chase you for the funds
This type of loan is a short term loan secured by your home or commercial property, but the loan can only be for
business or investment purposes. The interest rates are much higher than regular property loans and there are
fees attached. Sometimes this can be a much needed solution for a short term requirement.