The information contained in this website is of a general nature only. Please contact us for an obligation free credit assessment to determine the right mortgage loan type for you.
Variable Rate Loans: As the name implies, the interest rate associated with Variable Rate loans fluctuates over time with changes in the market. Variable Rate Loans generally allow additional repayments and can be repaid on a principal and interest or interest only basis. Additional loan features such as redraw and offset are typically offered with these loan types.
Fixed Rate Loans: Also as the name suggests, Fixed Rate Loans allow the borrower to lock in an interest rate for a period of time, usually between 1 and 5 years but even up to 7 or 10 years in some cases. Greater certainty is the hallmark benefit of Fixed Rate Loans however this must be balanced with an understanding that terminating a Fixed Rate Loan early can result in significant exit penalties and additional repayments are often restricted. Redraw and offset are not commonly available with these loan types.
Lines of Credit: Line of Credit mortgages are very much like a large credit card secured by your home! They are established with a credit limit that can be drawn up to by the borrower at any time provided the minimum monthly interest bill is repaid. Line of Credit mortgages are typically established on a variable interest rate basis and are considered to be one of the most flexible mortgage types available. They allow additional principal repayments and access to those additional repayments as a standard feature.
Construction Loans: Construction Loans are utilised when a borrower wishes to finance the construction of a residential dwelling. As the funds are normally required on a progressive basis, Construction Loan funds are released to the builder upon successful completion of pre-determined stages as stated in the building contract. This ensures the borrower is only paying interest on funds actually used at a given point in time. Construction Loans are generally offered on a variable interest rate basis.
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Custom Financial becomes one of the first Mortgage Brokers in Australia to be issued with an Australian Credit License.
First Home Owners Grants from $7,000 to $26,500 still available in Victoria until 30/06/2012. Email us today to check your eligibility.
