Refinancing your home loan
- Is your current mortgage working as well as it could for you?
- Is there unused equity in your home that you could use for investment purposes to get ahead quicker?
Investor Loans Network can help make your loans work harder for you.
The mortgage that suited you at the beginning may not be the best option for you today. There are always new and improved loan products on the market and our credit strategists can find the right one for you.
Refinance your home loan with us and you could enjoy these benefits now:
- No application or establishment fees
- Best market competitive interest rate
- Ability to consolidate other debts so you pay less interest all round
- Redraw facility and access to your additional payments made
- Weekly or fortnightly payment options at no extra cost to you
- Salary or wages can be paid directly into your loan
- No monthly fees lump sum repayment options
No need to wait for weeks to see your bank manager who can only see you during his working hours and not around yours. Our credit strategists are available to you during normal business hours and after hours in your home or our offices by appointment.
Using a Line of Credit Efficiently
When you have an income stream or in fact several income streams, such as salary and wages or rental incomes and you have established a Line of Credit, the most efficient way to conduct your personal affairs is to have all of your streams of income deposited directly into your Line of Credit. This will immediately reduce the balance of your loan and as a result, reduce the interest being accrued, as the loan is calculated daily on the balance outstanding. For example: If you are paid $5,000 dollars salary per month and you have this salary deposited directly into your Line of Credit each month and your interest rate was 7.5%, your interest saving would be approximately $30 for the month.
Now that may not seem like a great saving, but when you do the same thing every month it begins to compound very quickly helping you to pay off the personal or non-deductible portion of your loan very quickly. You may say that’s all very well, but how do I keep my $5,000 salary in the Line of Credit for the entire month as I need that money to pay for living expenses. Well, the first step is to get yourself set up with a 55 day interest-free credit card and put all of your monthly expenses on the card so that you can afford all your normal monthly expenses throughout the month and keep your cash working for you in your loan account.
At the end of the credit card cycle you set up an automatic direct debit from your Line of Credit account to pay off the outstanding monthly balance of your credit card. This process takes a little bit of setting up and a lot of discipline but it can be very effective when done properly. Take this process one step further! If you are self-employed and running a business most of you will have separate accounts set up to collect GST or superannuation contributions which are usually then sent off to the respective government and private organisations every three months.
If these amounts were collected and ‘stored’, in your Line of Credit account until they needed to be paid, you will quickly notice a substantial saving in interest and your outstanding balance will start to reduce considerably faster. Additionally, money is collected from sales or services of your business and can also be temporarily placed in your Line of Credit account during the month and then moved back to your business account at the end of the month to pay your monthly bills and credits.
This style of operation can get a little bit messy and the flow of money needs to be accurately accounted for with good bookkeeping. However, if set up correctly and accounted for correctly, this simple process can have a massive impact on reducing debts.
Property Investment Loans
Our finance strategists are specialists in the area of offering you the most effective property investment loans to assist you in building your multiple property portfolios.
Our strategists understand your need for positive cashflow property investing and multiple property management. With the hundreds of loan types on the market today we take the confusion and jargon out of the deal for you and explain in plain English the type of loan you need and why.
Below are the various property investment loan types which you can choose from to suit your individual situation and future needs:-
Investor Loans
Interest only facilities at very competitive rates.
Full Doc Loans
Traditional loan type for full-time employed, good credit rating, great rates & specials
Low Doc Loans
Fantastic for self-employed clients with ABN, no payslips required, income declaration required to be signed, not so much paperwork
No Doc Loans
No income declaration or payslips required, lower Loan to Valuation Ratio (LVR), very little paperwork
Line of Credit
Access equity in your home or your investment property to use as a deposit on that next great investment deal that comes along. Get yourself “Market Ready”.
Deposit Bonds
We can show you how to secure a property with someone else’s money.
Types of loans
Principal Only Loans
This is a groovy little technique that can be employed when you have a motivated seller. A seller maintains an interest in the property, (sometimes secured on the property, but not always). The balanced is paid over a period of time, with no interest.
Honeymoon Loans
Some institutions offer a six month or one year discounted rate to attract new business, usually about .5% to 1% below current variable interest rates. When the honeymoon is over; the loan will revert to the standard variable rate, or you can elect to fix the interest rate for a period.
Basic Loans
A basic loan is based on the variable interest rate, but the bank will offer you a discount for the life of the loan. The downside for this discount is you will have restrictions on the usage and flexibility of the loan. If you want to repay a lump sum, it has to be in large amounts.
Line of Credit, Re-draw Facilities and Offset Accounts
These loans are very similar products and all give you the ability to access funds against your mortgage when needed. The line of credit and re-draw facilities are virtually interchangeable. You can access funds up to the set limit (depicted by your income). Both loans are usually operated on an interest-only basis for the amount borrowed, calculated on a daily basis. An offset account is a little different, in that excess monies do not actually pay down the loan balance, but sit in a parallel account and interest is only calculated on the difference between the two.
The advantage of having these types of accounts is that you can have great flexibility to control your finances, no matter what type of property or investment strategy you decide to employ. Typically, with this style of loan, you can borrow 80% of the value of the property and in some cases even 90%. So, if you are looking to access the equity in your home, this style of loan is the perfect option, as you can gain access to the built up equity without paying interest on the loan until you actually use the money.
Fixed Loans
Most financiers offer borrowers the option of fixed loans. These maintain a guaranteed interest rate for a specified period. Loans may be fixed from 1 to 5 years but can be fixed for 10 to 15. Basically, fixed loans are when you contract to the bank for a specified period for an agreed interest rate.
Most financiers give borrowers the option of fixed loans; that maintains a guaranteed interest rate for a specified period of time. Usually, loans are fixed from 1 to 5 years but can sometimes be fixed for 10 to 15 years. Basically, fixed loans are when you contract to the bank for a specified period of time for an agreed interest rate.
Financiers vary a little in what repayments you can make during this period of time. However, most financiers only allow you to repay the minimum repayment during this period of time, while some allow you to only repay up to 20% above the payment required. When signing for a fixed option, there are a few traps to watch out for. Usually, you are not guaranteed the rate you sign for; banks will usually have written into the loan contract that it is the rate on the day of settlement not the rate on the contract. So if the rates go up or down, you get the rate on the day of settlement. We have seen instances where the fixed rate has increased over 1% between the times of applying to have a loan fixed to the time of settling the loan.
Some banks give you an option to guarantee the rate if you agree to pay a premium on the rate at the time of applying, usually this is .5%. You are able to fix either principal and interest loans or interest-only loans. After the agreed term, you can pay to re-fix or roll-over onto the variable rate of the day.
Another trap with fixed loans is that if you decide to sell the property or refinance it either with the same bank or another banker, there will quite often be a discharge penalty during the fixed term of the loan. If interest rates have dropped since fixing your loan, this penalty can often be very substantial. It is important to find out all the facts before entering into a fixed loan and if you already have a fixed loan and are considering refinancing to access the untapped equity in your property, it is important to determine the cost of doing so. Sometimes even when there is a substantial cost, the benefits can still out way any fees you may have to pay in doing so. In this circumstance, ask for help from one of our financial strategists.
Variable Loans
These are the standard type of loan that can fluctuate any time. Usually, bank rates are the same or very similar as their rates are linked to the reserve bank wholesale rate plus a margin. That is an extra percentage that is profit to the bank. Variable loans can also be taken out as either principal and interest loans, or interest-only loans. All line of credit facilities and redraw facilities are based on a variable rate loan. These loans can have early repayment fees, but usually only in the first one or two years. Honeymoon Loans Some institutions offer six months or one year discounted or honeymoon rate to attract new business, usually about .5% to 1% below current variable interest rates. When the Honeymoon is over; the loan will revert to the standard variable rate or you can elect to fix the interest rate for a period of time.
There are hundreds of different home loan products on the market that fit into each of the types of loans explained above. We can help you choose the home loan product that suits you best. If you're ready to discuss your options in more detail then arrange to speak to your local Investor Loans Network finance strategist.
Financing for Renovations
Refinance your mortgage and access additional funding for renovations.
Many people understand that adding value to your home through renovations such as a new kitchen or new bathroom can be not only financially advantageous by increasing the value of your property but will also improve your family’s lifestyle and harmony at home.
Here are a couple of approaches Investor Loans Network can offer to help you fund your renovations:-
1. See whether you are able to increase your current loan
- If you have held a property for a few years chances are your property has increased in value. This increase in value represents your increased equity in the property which could be used to fund the improvements you want to carry out. However, it is important that you determine that the loan you have is the most cost and term effective available on the market today.
- Our credit strategists at Investor Loans Network can offer you an objective review of your loan to determine that it is best for you and then organise the loan increase for you at no more cost than dealing directly with your bank or lender. If it is determined that another loan product would serve you better then we can organise that for you too.
2. Refinance your home loan to the maximum LVR (Loan to Valuation Ratio)
- Line of Credit loans are interest-only variable rate loans that allow you to borrow against the equity in your home with the added flexibility of a transaction account built into the home loan. You can access your loan by use of a chequebook, online and/or ATM access card – all at home loan rates!
- A Redraw facility has fewer ongoing fees and allows you to access your equity by withdrawing lump sum amounts from your loan through online and/or telephone banking with the funds going directly into your nominated bank account.
Your Investor Loans Network credit strategist can optimise the funds available to you to conduct your renovations….contact us today!
Financing for Home Extensions
Refinance your mortgage and access additional funding for extensions
Many people understand that adding value to their home through extensions such as adding a new living room, building an additional garage or new bedroom, perhaps on a second level, can be not only financially advantageous by increasing the value of your property but will also give your growing family room to move and create harmony in the home.
However, an extension, demolition or construction of a home falls under the financing category of property improvement and requires a more specialised lending approach. There will be an active involvement of your local council, private certifier and builder so the right loan to control the draw-down of funds will be imperative.
Your Investor Loans Network credit strategist can optimise the funds available to you to conduct your extension and ensure that the whole process goes smoothly and efficiently….contact us today!
First Home Buyer loans
Buying your first home is an exciting time. We understand that there are many new things to know and learn about such as:-
- How much can I borrow?
- What price range can I start looking at for our home?
- How long will it all take before I am my new home?
- What will our monthly mortgage payment be?
- What are the hidden costs no-one else tells me about unless I ask?
- Do I qualify for the First Home Owners Grant?
- How much is the First Home Owners Grant?
- How much deposit do we need?
- Can I use the First Home Owners Grant as my deposit?
- I’m confused, where do we start?
Our team at Investor Loans Network will make it easier by helping you through the steps. We will do all the loan application paperwork for you and can assist you with the government First Home Owners Grant Scheme too.
You may be eligible for concessions on stamp duties and other government fees also. Our trained credit strategists will ensure that you don’t miss out on any concessions you qualify for. You could save thousands!
We offer a number of loan products to help first home buyers get into the property market sooner. In some circumstances, you may be able to borrow up to 100% of the value of the property.
We have special loan products which offer reduced interest rates to you in your first year. This gives you the freedom of making extra payments during this time or perhaps using your saved cashflow to buy furniture for your new home. The choice is yours!
Home Loans
Basic Variable Rate Loans
Basic Variable Rate loans offer a lower interest rate, but fewer features to other types of loans . However, you usually have the option to pay for additional flexibility and features when you need them.
Fixed Rate 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.
Combination or Split Rate 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.
Non-Conforming Loans
Non-conforming Loans have been designed especially to help borrowers who do not meet ‘standard’ lending criteria. Ask our Credit Strategists today how these loans could be of benefit to you.
Home Equity Loans
Home Equity Loans allow you to unlock the equity in your existing property for other opportunities such as renovating your home.
Line of Credit Loans
Line of Credit loans are interest only variable rate loans that allow you to borrow against the equity in a home with the added flexibility of a transaction account built into the home loan.
All-In One Loans
All-In-One Loans feature an everyday transaction account linked to your home loan. By keeping all your money in your loan account, and only redrawing your living expenses as you need to, you can reduce the amount you owe. This, in turn, reduces the amount of interest you have to repay, making your money work harder for you.
