Konnect Financial Services will find the best loan product for you.
There are thousands of different home loan products on the market today, all with their own rates, fees and benefits for the customer.
Konnect Financial Services sifts through all of these options and uses our extensive expertise to identify which loan best suits your circumstances.
Below are summaries of the major home loan types:
- Standard variable rate home loans: Standard variable rate loans typically offer maximum flexibility and great features, including the option to fix or split your loan, the ability to make additional repayments and the option to redraw these funds for any purpose when you need to.
- Basic variable rate home loans: Basic variable rate loans generally offer a lower interest rate, but with fewer features. However, you usually have the option to pay for additional flexibility and features when you need them (i.e. redraw).
- Fixed rate home loans: Fixed rate loans protect you against interest rate changes for an agreed time, so you have peace of mind knowing your repayments won’t increase. However, you won’t benefit if rates go down during the fixed term. Fixed rates are generally less flexible with extra repayments limited and redraw usually not available.
- Introductory loans home loans: The interest rate is usually low to attract borrowers. Also known as a ‘honeymoon loan’, this rate generally lasts for only one to three years before it rises. Most revert to the standard variable rate, combination or split rate home loans.
- Combination or split rate home loans: Combination or split rate loans combine the flexibility of a variable rate and the certainty of a fixed rate, so you benefit when rates drop, and are protected when they increase.
- Lo-doc loans (including non-conforming loans): Lo-doc loans have been designed especially to help borrowers who do not meet ‘standard’ lending criteria, including those who are unable to provide the required documentation in support of their loan application (i.e. tax returns) or have an impaired credit history.
- 100 per cent offset loans: A 100 per cent offset account is a savings account linked to a loan account. No interest is paid to the offset account but instead the balance of your offset account is deducted from your loan account before the interest on your home loan is calculated. Therefore less interest is charged to your loan.
- Line of credit/home equity loans: These allow you to borrow against the equity in a home with the added flexibility of a transaction account built into the home loan. These loans can be used for a variety of purposes such as renovating your home, investing in shares or managed funds, or financing an investment property.
- Reverse mortgages: This is like a line of credit whereby it gives you access to the equity in your property. A reverse mortgage is offered to borrowers aged over 55 years. As it is the equity in your property that you are borrowing, you have the choice to repay that borrowed amount or let it compound until such time you refinance or choose to sell the property. A great product for someone that is asset rich but cash poor or someone that wants to use some of their equity for an investment, new car or holiday, etc.
All banks and lenders used by Konnect Financial Services have different lending terms, conditions and policies.
To request an obligation free appointment, contact us and a Konnect consultant will explain the differences and help you choose the loan that most suits your needs.