Standard Variable Loan
A Standard Variable Rate loan is one where the Interest Rate fluctuates during the term of the loan.
Introductory /Honeymoon Loans
These loans traditionally offer a Introductory period or Discount Period in which the interest rate will be reduced. The Introductory period can vary from 6 to 12 months. The interest rate can either be a discounted variable rate, fixed or even capped. Once the introductory period has expired that loan reverts to the standard variable interest rate.
Fixed Loan
A fixed rate loan is one where the interest is "locked in" for a specified period within the term of the loan (ex: The first two, three, five or ten years of a 30 year loan) or for the whole term of the loan. The interest rate is agreed and contracted between the lender and the borrower for an agreed term and cannot be changed without compensation being payable.
Line of Credit / Home Equity
Line of credit facilities or Home Equity Loans allow borrowers to gain access to the accumulated equity that they have in their properties. The Line of credit facility limit is normally determined by the value of the security or property that is being offered. A major feature of these facilities is that they allow the borrower to redraw their facility back to the original limit, they even allow the borrower to go between a credit and debit balances. These facilities are known as revolving line of credit facilities; they are similar in operation to the common overdraft. Most Line of Credit facilities allow for the borrower to operate their loan account as their transaction accounts, thus achieving an "all in one" account. Normally the borrower has their wage or salary deposited directly into the facility, which reduces their balance, thus reducing their daily interest charge. The borrow would then normally pay all their bills using the credit card, and access cash from their line of credit facility from a cheque book, ATM card etc.
Construction Loans
Most lenders will offer loans for the purpose of constructing owner occupied or investment dwellings. Most traditional lenders will lend on a progressive draw down basis as per the fixed building contract or as a single draw down at the completion of the construction.
Owner Builder Loans
Most lenders do generally not consider owner builders, this is due to past history of owner builders experiencing cost overruns. However, Independent Home will find a Lender or Lenders for Owner Builders.
Rural Properties
Most lenders will consider application for finance when the security being offered is zoned rural, however they will restrict value to which they will extend the facility.
Seniors Home Equity Release Loan
The loan designed for over 60‘s to give you access to the equity in your own home for you to use in any way you want, to supplement your income, pay medical expenses, finance a nursing home accommodation bond, financially assist your family or take a holiday - the choice is yours.
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