Standard Variable Rate Loans
The standard variable rate loan will fluctuate up and down over time, loosely in line with the official interest rates set by the Reserve Bank and now by the Lenders themselves.
The standard variable rate loan offers borrowers flexibility with a range of optional features – such as redraw, extra repayments or access to a line of credit – in exchange for a slightly higher variable interest rate. The features of a standard variable rate loan can assist you with paying your home or investment loan off sooner, consequently, reducing the overall cost of the loan. In addition, the standard variable rate loan is suitable for a broad range of borrowers.
For these reasons, the standard variable rate loan is the most popular choice of loan in Australia.
Basic Variable Rate Loans
The basic variable rate loan offers fewer features and flexibility than a standard variable rate loan, but this is offset by providing borrowers with a lower interest rate and consequently, lower repayments.
The basic variable interest rate loan is usually lower than the standard variable rate loan. In most instances, the Professional Package is not available with the basic variable rate loans.
Fixed Rate Loans
A fixed rate loan provides you with the insurance of a set loan repayment amount for a pre-determined period of time.
In most instances, there will be lenders who will have a special on fixed rate loans, at any given time, which may help you with your decision on whether or not to choose a fixed home loan.
Split or Combination Loans
The split or combination loans gives you the best of both worlds: fixed and variable. In short, part of your loan is fixed, securing your monthly repayments; and part is variable, so that you can enjoy all the flexibility and features of the standard variable rate loan.
Construction Loan
A construction loan allows the borrower to renovate or build their home to their specifications, through a registered builder.
Such a loan usually requires a fixed price building contract to be submitted ahead of time and then the lender pays the builder directly, at the varying stages of construction or renovation, until the construction or renovation process is completed.
Line of Credit Loans
A construction loan allows the borrower to renovate or build their home to their specifications, through a registered builder.
Such a loan usually requires a fixed price building contract to be submitted ahead of time and then the lender pays the builder directly, at the varying stages of construction or renovation, until the construction or renovation process is completed.
Professional Package Loans
The majority of lenders provide their borrowers with the option of choosing a professional package, which for an annual fee, provides the borrower with some or all of the following features:
- Discounted Variable Interest Rate (Usually up to 0.70%)
- No Establishment Fee
- No Monthly Fee on Loan/s
- No Monthly Fee on Offset Savings Account
- No Annual Fee on Credit Card
The annual fee ranges between $300 to $395, depending on the lender.
Superannuation Fund Loans
Borrowing though your self managed superannuation fund is becoming more and more popular.
Superannuation funds can borrow money to purchase real estate using a SMSF loan (self-managed superannuation fund loan). Property purchased using a SMSF loan may work just like a regular investment property loan, including having access to the tax benefits and other features generally available.
You can use a SMSF loan to purchase any kind of property including residential, commercial, retail, and holiday units for a property leveraged investment. Be aware that the SMSF loans can only be used purchase property investment or business purposes. Any residential property must be purchased from an arm’s length vendor.
Investing in property using an SMSF loan is subject to fairly strict rules and is governed by a number of different laws, which Noah’s Ark Finance has thoroughly understanding of and is, experienced and qualified, to provide you with a finance solution.
The structure of ownership and management of any property you invest in using an SMSF loan is also fairly set.
SMSF loans for leveraged property investments are available through a number of lenders in Australia. SMSF loan terms and features, including interest rates, LVRs on residential or commercial securities and the loan term and amount, will vary widely between lenders.
* financial planning and tax advice should be sought form a licensed professional
Chattel Mortgage
A chattel mortgage is finance to purchase:
- Motor Vehicle
- Earth Moving Trucks and Equipment,
- Office Equipment
- Commercial Equipment
A chattel mortgage is predominantly for business purposes.
Other forms of finance we can provided in this area is Novated Lease or Hire Purchase.
The decision is usually made in consultation with your accountant.
Commercial & Business Loans
Noah’s Ark Finance offers commercial and business loans in addition to our residential and investor market.
There is a range of business and commercial loans available. Which one you choose will depend on your purpose for borrowing.
Some examples we have provided commercial and business finance solutions for are as follows:
- Shop Front
- Office
- Factory
- Building Space
- Industrial Space
- Warehouse