Helping you find the right finance
Because your home loan will probably be your life’s biggest investment it is important that you obtain the best research and support when making this decision.
Our role as your mortgage specialist is to provide you with a selection of finance options from our large range of lenders on our panel. Together we assist you with choosing the right loan for your personal circumstances.
Whether you’re buying your first home, upgrading, refinancing, investing in property or wanting to pay off your existing home loan sooner, there are many options available and important considerations when choosing your loan.
Select A Mortgage will guide you through the process to ensure that all your needs and options are considered, and remove the personal stress and worry that comes with doing this by yourself.
These loans are the most common type available. The variable rate loan offers more features and flexibility than the basic or ‘no frills’ loan, so the rate is usually slightly higher.
The extra options (for example a redraw facility, the option to split between fixed and variable, extra repayments and portability) should be taken into account when choosing your type of variable rate loan.
Repayments will vary as interest rates fluctuate.
Fixed rate loans
These loans are set at a fixed interest rate for a specified period (usually one to five years). The advantage of allowing you to organise your finances and repayments without the risk of rising interest rates is offset by the disadvantage of not benefiting from a drop in rates.
At the end of the term all fixed rate loans automatically revert to the applicable variable rate. At this stage you have the option to lock in another fixed rate for a new term, switch to variable or go for a loan where you split with a percentage fixed and the remainder variable.
Fixed rate loans typically have limited features and lack the flexibility of 100% variable rate loans. There may be early exit fees and limited ability to make extra payments.
These loans combine the features of various products and can have the security of a fixed rate loan and the benefits of a variable rate 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.
Interest only loans
Interest only loans involve you only paying the interest component on your loan for a specified period, and not the principal loan amount. Standard home loans typically include paying both the interest and a small amount of the principal loan in each repayment.
Interest only loans were originally intended for investors. Loan repayments are reduced with the rental income paying or coming closer to paying the mortgage. This gives greater control over cash flow and potentially frees up funds for other investments. However, they are now becoming more popular with owner occupiers who want or need to reduce their mortgage repayments for a period of time.
As the lending environment is always changing and legislation becoming more rigorous, there have been changes across the Australian lending environment with the use of interest only loans. It is wise to chat with us before considering any type of interest only finance.
An offset account is a savings account attached to your loan account. Money in this account is offset against the loan amount thereby reducing interest payable. Significant savings are made by reducing compound interest with the use of these accounts.
Other advantages of an offset account include being able to pay off your home loan faster than the repayment schedule demands and being able to redraw money if the need arises.
Line of credit
These loans are a great 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.
Development, construction and renovation loans
Select A Mortgagecan assist with structuring financing solutions for commercial and industrial development, residential property development and renovations.
We can organise construction and development finance to provide creative and strategic alternatives to traditional development finance to maximise the return on your investment.
If you’re building a new home or planning major renovations to your existing home, a construction loan is generally the most appropriate funding option.
The difference between a construction loan and other types of loans is that a construction loan is drawn down in stages and not paid as a lump sum.
The drawdowns enable the builder of a home to finance the various stages of the construction process from the acquisition of land to the various stages of building.
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. Select A Mortgage can identify the lenders who can match your personal circumstances. The value of your property and your capacity to repay will determine your suitability for a non-conforming loan, however these loans generally attract a higher than normal interest rate.
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.
Select A Mortgage can help discuss your situation and offer you a range of borrowing options best suited to your needs.
A personal loan might be right for you if you want to fund the purchase of a car, boat, holiday or if you want to consolidate debt.
Personal loans may come with lower interest rates than credit cards, so funding a big expense or project with a personal loan could save you thousands of dollars on interest payments.
Debt consolidation is a process where all of your debts are rolled together into a single loan. Debt from personal loans and credit cards can be incorporated into your mortgage at a much better interest rate as home loans tend to have lower interest rates than other forms of credit. Consolidation will reduce your interest costs overall, and in this way save you money. Consolidation of your debt into your existing mortgage is most effective for larger amounts of money and should reduce the amount of your monthly repayment. It also has the advantage of only having to make one payment per month.
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 provide 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.
Consumer car loans
A car loan is suitable when the vehicle is used wholly or predominantly for private purposes. This means that the vehicle is used privately for more than 50% of the time. The motor vehicle is the only security needed, although in some circumstances a guarantee may also be required.
The loan term and balloon payment can be tailored to suit individual circumstances.
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If you would like to speak to us about your specific requirements please use the form below to contact us today.
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4A Macdonald Grove Mornington VIC 3931
PO Box 626 Frankston VIC 3199
P: 03 9788 6888
M: 0425 750 581
Australian Credit Licence Number
ABN 62 055 638 198