Home Loans & Refinancing
Looking for a new home loan?
There are many different types of home loans available.
Let's look at the different types of home loans available here in Australia..
Bullet Finance has helped countless people like yourself navigate this process and find the right loan type for their needs.
We can help you!
Standard Variable Loans
The rate charged on a variable loan moves up or down in accordance with movements in interest rates, as set by the Reserve Bank of Australia.
Pro's and Con's
-
When interest rates fall, repayments will also go down. This means that you can take advantage of lower borrowing costs in order to pay off your debts more quickly! Although of course the reverse applies if interest rates increase
-
Allows careful borrowers to pay off their mortgage quickly by not incurring penalties for advance payouts
-
Variable loans offer a lot of flexibility with features like the ability to redraw any extra money you put in, low introductory or honeymoon rates.
Refinancing Your Mortgage
You may be able to save money by refinancing your mortgage.
Mortgage rates have been dropping, which is great news for homeowners who want more flexibility in the type of loan they take out!
Commons Reasons to Refinance Your Loan
-
To take advantage of lower interest rates
-
To allow more flexibility than your current loan offers
-
Raise funds for the purchase of an investment property
-
Move from a variable loan rate to fixed loan or vice versa
-
you might need extra cash to renovate your home
-
Rolling your debt into the mortgage could possibly allow you to pay it off at a better interest rate
-
Switch to interest only repayments for a period of time
Offset Loans
The rate charged on a variable loan moves up or down in accordance with movements in interest rates, as set by the Reserve Bank of Australia.
Pro's and Con's
-
When interest rates fall, repayments will also go down. This means that you can take advantage of lower borrowing costs in order to pay off your debts more quickly! Although of course the reverse applies if interest rates increase
-
Allows careful borrowers to pay off their mortgage quickly by not incurring penalties for advance payouts
-
Variable loans offer a lot of flexibility with features like the ability to redraw any extra money you put in, low introductory or honeymoon rates.
Low Doc Loans
Investors and self employed borrowers wishing to refinance, purchase, or renovate should consider a low-doc or no-doc mortgage.
Because the borrower's income cannot be verified through conventional means, lenders frequently view low-doc home loans as a higher risk.
As a result, a Low Doc loan often has a higher-than average interest rate, as well as more limits on maximum LVR, loan features, and package discounts.
Typical Requirements for a Low-Doc Home Loan
-
Proof of ABN and/or GST registration
-
Business Activity Statements (BAS)
-
Business Account transaction statements
-
Accountant's letter
-
Personal tax returns
When applying for a low-doc Home Loan, it's a good idea to sit down with an experienced mortgage broker to figure out your real net earnings and the loan amount you can realistically afford to service on a regular basis.
Who knows, armed with all the information from this meeting, the team at Bullet Finance may be able to uncover more lenders and options you were unaware of.
