Loan Types
As one of the leading mortgage brokers in the Sydney area, We firmly believe that the best way to handle mortgages is for the client to be actively involved in the process every step of the way.
From choosing between a Fixed Rate Mortgage and a Variable Rate Mortgage to understanding negotiating terms,
We're here to help you with anything you need.
Types of Loans
Let's take a deeper look into the type of loan that will suit you and your needs
Fixed Loans
A Brighter Future
It’s easy to get lost while navigating all the different types of mortgage loans available. The Fixed Rate Mortgage could be the right one for you, but it’s important that clients understand all implications before signing something they could later regret.
The Interest rate is fixed for the term you choose - usually from 1-5 years.
It may be higher or lower to the prevailing variable rate at the time and may vary depending on the fixed term you select.
Your repayments will stay the same for the fixed period.
Fixed repayments make it easier to budget though may limit the opportunities to pay more off your loan.
If your want to switch to variable rate or refinance, you could be asked to pay break charges.
Some, but not all, fixed rate loans will allow extra repayments up to a set amount each year. Some also offer redraw.
Contact me now in order to discuss the benefits and disadvantages, and together we’ll decide whether this is the right mortgage for you.
Variable Loans
The Right Loan for You
The Variable Rate Mortgage can vary, as factors such as the official cash rate can have an impact. it can be higher or lower than fixed rates. As interest rates change, our repayments may fluctuate up or down. your need to be sure you could cope with rising rates and higher repayments.
You can usually make extra payments to help pay off your loan sooner.
There is usually no limit to the extra payments you can make and typically no extra charges. I’d be happy to discuss the details of the Variable Rate Mortgage.
Contact me to find out if you’re eligible, and whether this would be a good fit for your needs.
Split Loans
Prospective Property Owners
One part of your loan will have a fixed interest rate while the other may fluctuate with the market.
Only the variable part of your loan will be impacted by any rate rises or falls. Your fixed rate repayments remain the same throughout the fixed term.
You generally have some flexibility to make extra repayments, balanced with the reassurance of fixed repayments.
Most lenders provide flexibility in setting the fixed and variable portions to best suit your needs.
You can access loan features like redraws and extra payment while the fixed portion gives you a little more certainty around your long-term budget.
Get in touch to learn more about the implications and to find out whether this would be a good mortgage for your financing needs. I’ll provide all necessary information for you to make an educated decision.
Interest Only Loans
Is it the right loan for You?
You may be considering an interest-only home loan because of lower initial repayments. Check the pros and cons before going ahead. Make sure you can afford higher repayments at the end of the interest-only period.
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How interest-only home loans work.
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Your repayments only cover interest on the amount borrowed, for a set period (for example, five years), you pay nothing off the amount borrowed, so it doesn't reduce.
At the end of the interest-only period, the loan will change to a 'principal and interest' loan. You'll start repaying the amount borrowed, as well as interest on that amount. That means higher repayments.
Pros and cons of an interest-only loan
Pros
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Lower repayments during the interest-only period could help you save more or pay off other more expensive debts.
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May be useful for short-term loans, such as bridging finance or a construction loan.
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If you're an investor, you could claim higher tax deductions from an investment property.
Cons
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The interest rate could be higher than on a principal and interest loan, So you pay more over the life of the loan.
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You pay nothing off the principal during the interest-only period, so the amount borrowed doesn't reduce.
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Your repayments will increase after the interest-only period, which may not be affordable.
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If your property doesn't increase in value during the interest-only period, you won't build up any equity. This can put you at risk if there's a market downturn, or your circumstances change and you want to sell.
Get in touch for more mortgage information and learn what type of loan is right for you.