Buying a home or investing in your business is probably one of the biggest and most important purchases you will make in your life. To make it a smooth, successful process, you need to surround yourself with a team of people who really know what they’re doing – experts with the know-how to help you make the right decisions. You can trust Propel Finance to provide you plenty of options that fit your needs, at competitive rates that save you money.
To start off, it is always nice to have the appropriate information at your finger tips. Below is a list of finance options that may be suitable for your situation. Have a look and please contact us directly so we can go over things with you in more detail.
Advantages of a standard variable loan:
• Lump-sum payments can be made without incurring a penalty.
• If interest rates fall, your repayments will fall.
• Often offer extra features.
Disadvantages of a standard variable loan:
• If interest rates rise your repayments will increase.
Advantages of a basic variable loan:
• Relatively low interest rate.
• Lower repayments.
Disadvantages of a basic variable loan:
• Many of these loans do not have the same features or flexibility as other variable loans.
Advantages of an introductory rate loan:
• Usually the lower rates on the market.
• Some lenders provide offset accounts on these loans.
• Opportunity to reduce the principal quickly during the ‘honeymoon’ period.
Disadvantages of an introductory rate loan:
• Payments will increase after initial introductory (honeymoon) period.
Advantages of a fixed rate loan:
• Guaranteed rate, if interest rates rise your repayments won’t.
Disadvantages of a fixed rate loan:
• Reduced flexibility.
• Extra repayments may incur a fee or be limited.
Advantages of a low-doc loan:
• Simple income declaration form.
• No tax returns.
• No financial statements.
• Can have features such as redraw, line of credit, variable or fixed rates, principal and interest or interest only.
Disadvantages of a low-doc loan:
• Generally a higher interest rate.
A construction loan allows you to draw money as is required whilst building. Also, with the usual necessary documents required when applying for a loan, construction loans also require a fixed price building contract and council approved plans.
Advantages of a construction loan:
• Competitive variable interest rates.
• Facility to draw money when necessary, whilst building.
• Interest only payments during the building period.
• Additional payments can be made.
Disadvantages of a construction loan:
• Requires a fixed price building contract leaving little room for change whilst building.
• Some lenders charge a fee for every time you draw money whilst building.
• Given it is a variable loan, loan repayments will increase if interest rates go up.
Advantages of an offset loan account:
• It can save you substantial amount of interest if used correctly.
• Operates like a normal transaction account and has a chequebook, ATM card, etc. attached.
Disadvantages of an offset loan account:
• May have higher monthly fees attached to the account.
• May require a minimum balance in the account.
Advantages of a line of credit loan:
• You can use the money when you need it and pay it back when you can.
• Rates are generally lower than a personal loan or credit card.
Disadvantages of a line of credit loan:
• Unless care is shown it is possible to reduce the equity you have built in your home.