Home, Property Investment Loans
Either yes or not yet
Testimonials
I have recommended Oz Lend to a number of my friends and business associates. Oz Lend is more than an ordinary mortgage broker.
Read more
Read more
Home buying made easy
Standard Variable Loans
The interest rate can vary throughout the term of the loan - both up and down. The term is usually 25 to 30 years. The advantages of this are that if interest rates fall, your repayments will also come down; you can usually make additional repayments without incurring a penalty allowing you to pay off your loan faster. Remember, if interest rates rise, your repayments rise as well.
Basic Variable Loans
Many lenders offer basic variable loans with lower interest rates than standard variable home loans however with generally with fewer features. Like all variable loans the interest rate and your repayments can vary over the term of the loan. The biggest advantage is price - basic variable loans have a lower interest rate so repayments are sometimes lower than standard variable loans.
Lenders normally do not offer the same range of features or flexibility e.g. many basic variable loans cannot be used in combination with other loans and are not portable. It is important that you look into each different lender as you need to work out the advantage or disadvantage of each loan in comparison to one another.
Fixed rate
Many lenders offer basic variable loans with lower interest rates than standard variable home loans however with generally with fewer features. Like all variable loans the interest rate and your repayments can vary over the term of the loan. The biggest advantage is price - basic variable loans have a lower interest rate so repayments are sometimes lower than standard variable loans. Lenders normally do not offer the same range of features or flexibility e.g. many basic variable loans cannot be used in combination with other loans and are not portable. It is important that you look into each different lender as you need to work out the advantage or disadvantage of each loan in comparison to one another.
Lenders generally offer lots of packages on the standard variable rates. The advantage of Standard variable rate loans is that they may include many features which if used correc tly can help pay off your mortgage more quickly. These features include mortgage offset, redraw and revolving line of credit. Some lenders will also offer discounts packaged with one year introductory rates.
Refinancing
Refinancing means a borrower takes out a new loan to pay out an old loan. Refinancing can sometimes be advantageous with another financial institution taking advantage of different packages on offer. Many borrowers refinance their home to take advantage of tax effectiveness in relation to investing or accessing equity in their property etc. It is also a good way to take advantage of your home equity and to direct funds to investments.
Mortgage offset
A mortgage offset account becomes a personal transaction account. The balance in the account is used to reduce interest on your mortgage. You can deposit and withdraw on this account the same as other accounts so it could be set up as an account for depositing your salary for instance. Your offset account is linked to your mortgage thereby reducing the balance of your mortgage by the amount of money in your account, dollar for dollar; therefore allowing the balance to reduced the interest payable on your mortgage. Remember the daily limit of your account is offsetting your home loan when the lender calculates the interest.
It could be used as a Loan Reducer or Mortgage Reduction facility. Different lenders offer different types of Offset features, again you need to shop around to make sure the lenders facilities are in line with your own requirements. Be aware that Mortgage offset is not necessarily always offset 100%.
Although ATM, Eftpos, cheque and other access means are available, 100% offset loans encourage borrowers to use a credit card for all purchases and then settle the card in one transaction from the mortgage account per month. This allows the money to remain in the account to reduce the interest for the longest possible period of time.