First Home Buyers - Are you buying your first home?
Buying your first home is very exciting and one of the biggest decisions you will make in life. There are many things you need to consider and more importantly how much you can borrow, what the repayments will be, do you qualify for the First Home Owners Grant and if so how much you are entitled to receive. We will step you through the process and work with you from start to finish.
Refinancing Your Home Loan - Is your home loan still right for you?
How long has it been since you have looked at your mortgage, do you know what interest rate you are paying, this is a question we ask our clients regularly and surprisingly 90% don't know and are surprised when we sit down with them and show them how much they could be saving. By refinancing we find out what is important to you and what you want to achieve moving forward. It could be that you are unhappy with your current lender, want to consolidate debt, access equity for renovations or investment opportunities.
Investing In Property - Are you looking to invest in property?
Do you want to build a property investment portfolio and create financial freedom? Are you first time investors looking to purchase an existing property or home & land package. Summit Finance has partnered with Property Investment Companies who have home & land packages available throughout Australia. They do the research for you and will look at what opportunities are available to you to best suit your budget, ways to minimise risk and maximise tax benefits. Once you have found the perfect property for your investment we will assist you with the finance. Our goal is to make the process as easy as possible and help you achieve your dreams.
Construction Loans
A construction loan generally has two components to the loan, the land which settles first and then the building/construction component. The lender will conduct a valuation on the land and the initial construction valuation is based on the building contract & plans. The lender will make progress payments once various steps of the construction have been completed. On completion of the property the lender will carry out a final valuation. It is typical that the loan be established as an interest only loan until completion of the property at which time the loan will revert to principal and interest repayments.
Bridging Finance
Bridging loans are short-term funding solutions available when having to wait to sell an existing property to cover the equity required to buy a new property. Funding is generally at a slightly higher interest rate than conventional mortgages, the lender provides funding on the basis that the property will be sold quickly. The term of the finance is determined by whether the new home is an existing property or construction.
Different Loan Types
Variable
Standard variable loans are the most popular home loan in Australia, Interest rates go up or down over the life of the loan depending on the official rate set by the Reserve Bank of Australia and funding costs and individual decisions by each lender. Your regular repayments generally pay off both the interest and some of the principal.
Fixed
Your regular repayments are unaffected by increases in interest rate, you can manage your household budget better during the fixed period, knowing how much is needed to repay your home loan.
Split Rate Loan
Your loan amount is split, so one part is variable and the other is fixed. You decide the portion of variable and fixed, you enjoy the flexibility of the variable loan along with certainty of the fixed portion.
Interest Only
You repay the interest on the amount borrowed usually for the first one to five years of the loan, although some lenders offer longer terms. Because you are not paying off the principle your monthly repayments are lower. At the end of the interest-only period you begin to pay both the interest and principal.
Introductory / Honeymoon
Originally designed for first-home buyers, but now available more widely, introductory loans offer a discounted interest rate for a period of time set by the lender before the rate reverts to the usual variable interest rate.
Low Doc
Popular with self-employed people, these loans require less documentation or proof of income than most, but often carry higher interest rate and require a larger deposit because of perceived higher lender risk. In most cases you will be financially better off getting together full documentation for another type of loan, but if not possible a low doc loan may be your best opportunity.
