Mortgages

If you are looking for a competitive low rate mortgage loan you have come to the right place. At Business Money we offer competitive mortgage rates, loan terms, and flexible products.

Because we have multiple lenders and experienced consultants, you can be assured our products will always be the most competitive and most suited to your individual needs.

As business is our area of expertise, we have an extensive range of mortgage loans for the self-employed where their financial needs may be more complex.

There are hundreds of home loans on the market, each with different rates and features. If your current mortgage rate or flexibility is not working for you maybe one of the loans detailed below might be more suitable.

We can offer mortgages for varying purposes, including:

• Residential home loan
• First home owner
• Owner builder
• Refinance mortgage at better rates
• Consolidating debts
• Buying land
• Land for development
• Investment mortgage loan
• Owner occupier
• Inner city

Standard variable mortgage loan

This is the most common type of mortgage loan. The interest rate varies throughout the term of the loan which means that your repayments can go up and down. The term is generally about 30 years.

It offers maximum flexibility and many features including interest only mortgages. You can make additional payments without penalty and can redraw funds for any purpose when you need to.

Basic variable mortgage loan

This type of loan is becoming more popular as it offers lower mortgage rates which mean that repayments are also lower. However, it offers fewer features than a standard variable mortgage loan. The interest rates and repayments vary over the term of the loan.

Fixed mortgage rate

A fixed mortgage rate is locked in for an agreed time anywhere from 6 months to 10 years. So if set loan repayments appeals then you will have peace of mind knowing that your repayments won't increase.

However, you won't benefit if rates go down during the fixed term. Once the fixed rate period is finished the rate will usually revert to a variable rate unless you decide to rollover for another fixed term.

There is very little flexibility about additional repayments and doing so may mean penalty costs.

Combination or Split mortgage rate

If you are concerned about your current mortgage rate rising, but dislike the inflexibility of a fixed rate loan, you can get the best of both worlds with a combination or split mortgage rate.

You get the advantage of features like extra repayments, redraw and mortgage offset, without exposing your entire loan to fluctuations in interest rates.

How you split the loan is normally up to you but 50/50 or 60/40 splits are the most common. Penalty costs will apply if you break the fixed portion of the loan early.

Non-Conforming mortgage loans

Non-conforming loans are designed for borrowers that do not meet standard lending criteria and may include independent contractors, non-residents, large acreage, deposit holders or even those with a credit impaired history.

This type of loan may also be suitable if you wish to borrow 100% of the property value. In most cases non-conforming loans attract a higher rate of interest.

Low Doc or No Doc loans

A Low Doc or No Doc loan is suitable for investors or self-employed borrowers looking to refinance their mortgage, purchase or renovate. This involves a simple income declaration with no financial information to produce.

All the usual benefits of loans are available including; additional repayments, redraws, line of credit, variable or fixed rates or interest only mortgages.

Low doc and No Doc loans generally attract a higher interest rate and may have restrictions on the level of borrowing that the lender is prepared to go to.

Introductory or honeymoon loan

Interest rates are usually low for the first year of the mortgage loan. The rate may be fixed, variable or capped, meaning that if interest rates rise your rate will not go up, but if rates fall that rate will go down and you will benefit.

Once the period is finished the interest rate usually reverts to the standard variable rate.

The advantage of an Introductory Rate is that it offers borrowers a chance to reduce the principal quickly by making extra repayments. The main disadvantage is that most banks charge penalties if you discharge them within the first 3-4 years after settlement.

Home Equity or Line of Credit loans

The Home Equity loan is a Line of Credit, secured by a first registered mortgage over your residential property, which allows you the flexibility to turn the equity in your property into a ready source of funds up to an approved limit.

You can borrow in the name of a company if the funds are used for the personal use of a director of the company OR if you borrow as an individual, your funds are available for any personal purpose (eg: refinancing a home loan, purchasing shares, etc).

The appeal of this type of facility is that it allows you to redraw the facility back to the original limit. The facility is also known as a revolving Line of Credit as they are similar in operation to an overdraft.

Most Home Equity or Line of Credit facilities allow for you to operate the loan account as a transaction account, thus achieving an "all in one" account. Normally your salary is deposited directly into the facility, which reduces their balance, and therefore their daily interest charge.

You would then normally pay all your bills using credit card, and access cash from your line of credit facility from a cheque book, ATM card etc. This type of facility charges slightly higher interest rates than a standard mortgage of a fixed amount.