Ph: (02) 9609 4655
Fax: (02) 9609 7155
Fax: (02) 9609 7155
Loan Enquiry
Residential Loans
Excellence Finance mortgage brokers offer many types of loan options, see below. The lender have their own variations and ofcourse they price their offerings accordingly, in most cases they are all similar to each others rates.
Principal & Interest:
This is the type of loan that most people will take if they want to pay off their home loan and the interest incurred in the agreed loan term.
The benefits of having a principal & interest loan are:
- You will be able to pay off your inital amount borrowed (the principal) and also the interest incurred in the loan term (interest)
- As time goes by, your principal amount will decrease as well and you will also save interest.
- Making extra repayments and having loan features such as a offset account and loan redraw will also benefit you when you want to reduce your loan principal.
Types of loans available with principal & interest loans:
- Basic Loans
- Standard Variable Loan
- Introductory Rate Loan (1 year fixed or 1 year variable)
- Fixed Rate Loans
Interest Only:
This type of loan product is designed to be tailored to match the cash flows for an investment property usually for the first 5 years of the loan, after this time the loan can be converted into a Principal & Interest loan or taken over another 5 years of interest only.
The benefit of having this loan is you make lower repayments because you are only paying the interest from the loan.
The disadvantages of paying interest only in your loan is:
- You will not be paying any of the loan principal balance unless you make extra repayments from the loan balance
- You are only paying the minimum repayments from the loan
- People who would take advantage of this type of loan would usually use the extra cash they have saved up to pay for their owner occupied loan or other loans.
Line Of Credit:
Also known as "Equity Loans", these facilities free up the equity in the underlying property and convert it into a Revolving Line Of Credit which can be used for personal or investment related purposes.This involves having a credit card and using it to pay for bills and other monthly expenses incurred
The benefits of having this loan are:
- Every month once your income comes in the account, your credit card is paid off and the remainder is taken off your principal.
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Withdraw up to your credit limit on your credit card without having to gain a pre-approval from the bank
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The credit card limit amounts will be usually higher other credit cards available directly from the lender.
The disadvantages of having a Line of Credit loan are:
- You need good budget skills when you have a credit card, in most cases your credit card limit will be higher than your monthly income therefore you will need to budget yourself correctly so you dont overspend.
- In some cases you may pay a higher interest rate.
Construction Loans:
These are very short term facilities for those who are in the process of building. This loan suits anyone who is wishing to purchase a land and then construct your home on it. The loan is drawn down in 5 stages which will pay the bulder. During the construction period, your construcion loan is interest only to help you pay your rent or other mortgage you already have. After the construction period, the loan will revert to a standard loan.
Contact one of our finance brokers and we will get back to you as soon as possible or use the form on the left hand side to enquire about your loan.
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