Finding the right home loan.
Choosing the perfect home loan goes beyond a quick browse on a comparison website for the lowest interest rate. When it comes to your next home loan on the Sunshine Coast, there’s a myriad of factors to consider. At Loan Wize Sunshine Coast, we simplify the process by asking the right questions to ensure you’ve explored all available options. With various loan types offering diverse features and benefits, it’s crucial to meticulously evaluate your requirements for a new loan. This ensures you not only have a suitable solution for your current needs but also for the long-term.
Key Considerations for Evaluating a Home Loan:
Offset Account Requirement: Determine if you need an offset account to help reduce your interest payments.
Redraw Facility: Consider if having the option to redraw additional repayments is important to you.
Interest Rate Fixing: Decide whether fixing the interest rate for a specific period aligns with your financial planning.
Split Loan: Assess if a split loan option, dividing your loan into fixed and variable portions, is suitable for your needs.
Interest-Only Repayments: Evaluate if interest-only repayments match your financial situation and objectives.
Fee Preferences: Choose between no fees, a package fee with extra benefits, or a low monthly fee with limited additional perks.
It’s not only the loan features that matter; your unique circumstances play a significant role in determining the most suitable loan or lender. Different income types, such as casual, part-time, seasonal, commission, bonus income, or contract work, can affect your eligibility with various lenders. Some lenders may not accept government benefits, while others do. If your current bank declined your application based on your income type, it doesn’t imply the same outcome with all lenders.
We simplify this process and eliminate confusion, ensuring you apply with a lender we know will meet your specific needs.
Types of Loans – Home Loans Sunshine Coast
Discovering the Perfect Home Loan is Essential for Optimizing Your Mortgage
Finding the ideal home loan is a crucial step in achieving the best possible outcomes for your mortgage. It can potentially save you thousands of dollars in interest and fees throughout the loan term. Below, we present some of the most commonly offered home loan types by various lenders today. To gain deeper insights into each type of home loan, simply click on the headings below. If you’re looking for a comprehensive understanding of what a mortgage entails, feel free to explore our Mortgage Fact Sheet for more information.
Standard Variable Home loans are Australia’s most popular type of Sunshine Coast home loan and fast loan. The interest rate varies throughout the loan term generally synced with Reserve Bank of Australia movements. These Sunshine Coast home loan generally offer excellent flexibility, low fees and often offer great features such as an offset facility, redraw facility, no limits on additional repayments and in most cases, no early pay-out penalties.
Advantages:
- Flexibility
- Lump-sum payments can be made without incurring a penalty.
- If interest rates fall, your repayments will fall.
- Often offer extra features.
- Often have access to a 100% offset account.
Disadvantages:
- If interest rates rise your repayments will rise.
Basic variable Home loans typically offer lower interest rates and fewer features than the standard variable loans, and generally with lower or zero fees as well. You often have the option to pay for any additional feature required. Interest rates and repayments will vary throughout the loan term, and fluctuate with movements to the Reserve Bank Cash Rate. They are a great mortgage suited to clients that want a “no frills” mortgage product with fewer bells and whistles.
Advantages:
- Relatively low-interest rate.
- Lower repayments.
- Zero or very low fees.
Disadvantages:
- Many of these loans do not have the same features or flexibility as other variable loans (typically lack an offset account).
Under a fixed rate home loan, the interest rate is fixed for a specified period, usually between one and five years. This loan gives you the certainty of knowing exactly what your monthly repayments will be and peace of mind knowing the repayments won’t rise during this fixed rate term. However, you won’t benefit if rates go down during the fixed term. They prove to be very popular in a low-interest rate environment, as they can often lock in the current low rates for an extended period of time.
Advantages:
- Guaranteed rate, if interest rates rise your repayments won’t.
Disadvantages:
- Reduced flexibility with repayments and redraw often unavailable.
- Extra repayments may incur a fee or be limited.
- You may be stuck with a higher rate if the variable/cash rate reduces during your fixed term, and sometimes large early repayment penalties may apply.
If you are building your own home or investment property, a construction loan may be suitable for you. This loan requires a fixed price building contract from a registered builder. These loans are usually interest only for the period of building and then become principal and interest once the building is completed. 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:
- 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:
- 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.
A 100% offset loan gives you the ability to have savings offset against the principal of your loan. Rather than putting all your salary and other income into your loan, it goes into an offset account that is directly linked to your home loan. Any balance in the offset account is 100% ‘offset’ against your home loan. This reduces the amount of interest you have to repay, making your money work harder for you.
Advantages:
- Can save you a substantial amount of interest if used correctly.
- Operates like a normal transaction account and has a cheque-book, ATM card, etc. attached.
Disadvantages:
- May have higher monthly fees attached to the account.
- May require a minimum balance in the account
Far less popular these days, Line of credit Home loans provides you with access to the equity in your home or investment properties up to a pre-approved limit. You access the funds as you need to. The interest rate on a line of credit Sunshine Coast loan is usually a variable rate and repayments are interest only.
Advantages:
- You can use the money when you need it and pay it back when you can.
- Rates are much lower than a personal loan or credit card.
- Very Flexible allowing for unlimited transactions and can be used as your main transaction account, thereby saving interest on all of your funds deposited.
Disadvantages:
- Typically an interest only loan and care needs to be taken to ensure that you reduce your overall debt over time, which can be mitigated my using alongside a P&I term loan.
A low documentation (or no documentation) loan is suited to investors or self-employed borrowers who do not meet the ‘standard’ lending criteria. This may include; those with an impaired credit history, those who are unable to provide the required documentation in support of their loan application or those who wish to borrow more than 100% of the property value.
Advantages:
- Simple income declaration form.
- No tax returns.
- No financial statements.
- Allows a significant amount of flexibility and great benefits from having salary credited directly to the loan and paying monthly living expenses with a credit card.
- For Debt consolidation, the single repayment will be much lower than the combined repayments of shorter-term loans.
Disadvantages:
- Usually a higher interest rate than available on a traditional loan.
First Home Buyers
Bringing the Excitement back for First Home Buyers!
Don't be daunted by the prospect of Buying your first home
With the multitude of home loan products available in the Sunshine Coast market, the task may seem daunting. However, the journey to finding the perfect loan need not be a challenge. We are here to guide you at every stage, ensuring a straightforward process that saves you time and effort.
For first-time home buyers, the options can be overwhelming. But how do you determine the ones that suit your needs best? At Loan Wize, we leverage our expertise and experience in the home loan market to swiftly evaluate numerous loan options.
Our goal is to provide you with an excellent home loan recommendation that not only competes in the market but also aligns perfectly with your requirements, streamlining the decision-making process for you.
First Home Owner Grants
First Home Owners may also be able to take advantage of various state government grants for the purchase of an existing or new home, Stamp Duty exemptions, and other additional incentives to purchase their first home. These vary considerably between states, so the best idea is to speak to one of Professional Lending Specialist to find out if there is any Government Grant or incentive in your state. In some cases these incentives can even be used to assist with your deposit funds.
You can save thousands by switching to a more appropriate loan.
Saving made as a result of lower interest rates and low or no monthly fees can be sizable. When these savings are added to your repayments, they can cut years off your home loan Sunshine Coast and save you a considerable amount.
Lenders Mortgage Insurance and Genuine Savings
Many First Home Owners have limited deposit funds and are looking to purchase a property with the minimum amount of deposit possible. If this is you, then it may be necessary to have Lenders Mortgage Insurance (if you need to borrow more than 80% of the purchase price). One of the typical requirements for Lenders Mortgage Insurance is Genuine savings, which is where you can prove that you have had your deposit funds in your account for more than 3 months (6 months in some cases).
It is possible where you have a gifted deposit that you may qualify for an exemption on this policy, provided you have been renting consistently and your real estate agent will vouch for you. Speak to one of Professional Lending Specialist about whether this policy will be available to you.
How Much deposit will I need?
This is one of the most frequently asked question we hear, and there is no one answer that is right for everyone. There are so many factors to take into account in regards to your deposit (ie is it genuine savings or not), whether you are building or buying an established property, and even your employment history. You may even be able to use the First Home Owners Grant as a deposit as well. To find out more though, we would need to discuss your personal situation.
It pays to do your research.
Buying a property is likely to be one of the biggest investments you’ll ever make. And as it’s an investment for the long term, it’s wise to make decisions with your head and not your heart. We have access to property market data and information that can help you make an informed decision about the capital growth potential of any property you wish to purchase. We also have tips on what to look for in a new property, so you can be confident you’ve done your homework before buying your first home.
First Home Owners Frequently Asked Questions.
How much you can borrow, also known as your borrowing capacity, will depend on how much of a deposit you have, your current income and what expense commitments you have. It will also vary from lender to lender.
It is one thing to work out how much you can borrow, but you need to know if you can afford the repayments.
The amount you need as a deposit will depend on the type of home loan and the lender you select. Generally you will require a minimum of 5% of the property value, however in many cases you may require even more.
Stamp duty is a tax levied on the purchase of a property. It is calculated according to the purchase price of the property and the state or territory the property is situated in. In some states, Stamp Duty is waived for First home Buyers to help reduce some of the costs of purchasing your first home.
As a rough guide, you should budget for between 5-7% of the purchase price, in addition to your deposit, to cover fees and charges. While mortgage and stamp duties will make up the bulk of this 5-7%, the balance may include;
– Building and pest reports
– Valuation fees
– Lenders mortgage insurance (LMI)
– Solicitors fees
– Insurances
– Utility connection fees – phone/gas/electricity
– Council and water rates
– Removalist costs
When deciding on the area to live in, apart from considering proximity to family, friends and work commitments, you will obviously need to think about prices. Prices will vary greatly from suburb to suburb.
To help you decide on the right home for you, Loan Wize consultants can arrange for a free report on the area you are interested in.
You can make an appointment with a Loan Wize consultant by calling 07 5443 6522 or 1300 LOANWIZE.
Mortgage Refinancing
Refinancing Your Home Loan
You Could Be Paying More Than You Have To!
Loan Wize provides a quick, easy and obligation free service that allows you to compare your current Sunshine Coast home loan against the hundreds available from our panel of lenders.It is common for people to refinance as they can get a better interest rate, lower monthly repayments and change their loan to suit their lifestyle.Best of all, it won’t cost you anything to have a Loan Wize consultant compare loans for you- so you can start saving money now.
Why would you consider mortgage refinancing ?
You could be paying more than you need to be, as what could have been a great home or investment loan 2 to 3 years ago, may no longer be competitive. With lenders changing their loans and improving their offerings for new clients regularly, and not advising their existing clients of this, there is almost always an opportunity to improve on your current loan offering. So what are the main benefits?:
To take advantage of lower interest rates and fees
Consolidate your Loans into one and save
Switch from a variable rate to a fixed rate, or split your loan into both fixed and variable.
To access Equity for Home renovations, Investments or a new car or holiday.
Mortgage Refinancing Tips & Tricks
You don’t have to be buying or selling your home to move your loan.
There is no reason to wait until you sell your home or buy another property. If you are not satisfied with your current loan, why not start saving now?
You can save thousands by switching to a more appropriate loan.
Saving made as a result of lower interest rates and low or no monthly fees can be sizable. When these savings are added to your repayments, they can cut years off your home loan and save you a considerable amount.
You don’t need to shop around, as we do it for you.
Loan Wize will do the running around for you! Loan Wize consultants use their expertise and experience in the home loan market coupled with a unique computer software program that enables them to compare hundreds of loans in a matter of minutes.Our consultants will then be able to provide you with a short list of loans that are both competitive and suitable – simplifying the mortgage refinancing process for you. Call us on 07 54436522 for a chat.
You don’t need to shop around, as we do it for you.
Loan Wize will do the running around for you! Loan Wize consultants use their expertise and experience in the home loan market coupled with a unique computer software program that enables them to compare hundreds of loans in a matter of minutes.Our consultants will then be able to provide you with a short list of loans that are both competitive and suitable – simplifying the mortgage refinancing process for you. Call us on 07 54436522 for a chat.
Debt Consolidation Loans
Do you have a personal loan, credit card debt or a car loan? With debt consolidation loan, it is possible to save a considerable amount of interest payments by combining these debts with your home loan into one single loan.
With a single loan, you can lower your total repayments – as it’s only one interest rate and one ongoing repayment. This way you will be paying less each month than you were previously.
While this can be a good idea in many cases, you should consider a couple of things first. Such as:-
- Are there any exit costs on your short-term loans, which would cancel out any benefit derived by consolidating with your home loan?
- Could you end up paying more by spreading your repayments over a longer period of time?
It’s ok if you are unsure. Our Loan Wize consultant can help you restructure your finances and discuss ways for you to obtain the savings and avoid the traps. We ensure that you understand debt consolidation loans and the options that work best for you.
With 48 years of combined finance experience, we tailor the debt consolidation loan to meet your financial situation. We have a proven track record in debt solutions for Australians helping them manage their debt and save more for their future.
Apply For Your Debt Consolidation Loan Today
If you are curious or unsure if debt consolidation might be a suitable option for you, contact us at Loan Wize, we will assist you by assessing your current financial situation, other financial commitment, then providing with tailored options that work best for you now and in the long run.
Alternatively, fill your details in this contact form and our financial consultant will contact you for a financial assessment, or call us directly at 1300 LOAN WIZE /07 54436522 for a chat.
Property Investors
Mortgage Refinancing Tips & Tricks
Positive Lending Solutions Sunshine Coast
At Loan Wize, we are passionate about Property Investment, because we are active property Investors ourselves. Having completed over 30 property transactions between us we know what can be achieved through a successful property investment scenario.
Investing in property has always been seen as a safe and effective way to build wealth provided that you conduct suitable research and have a sound strategy. While not a get rich quick scheme, Property investment allows you to build your wealth over time in bricks and mortar property that appreciate over time.
Property Investment is a great way to accumulate equity and wealth as it is very easy to leverage against, it usually comes with a great income that helps to cover the costs of ownership, it has some fantastic tax incentives associated with it, and it is never subject to a margin call! We want to partner with first time and experienced property investors alike to assist you in building your portfolio of properties and help you to maximise your return on your investment.
If you are a interested in property investment, but not sure where to start, our regular interactive property investment workshops are for you. Providing access to great industry presenters and building your knowledge base, these sessions are all about education, not selling you something, so you can feel comfortable in knowing that it is all about bringing you information to arm you to make most informed decision.
We can also provide you with some analysis on the overall cost of owning a prospective property, so that you know what the actual cash flow implications will be for you after the tax benefits are received.
Loan Wize has alliances with several fantastic property investment companies that can provide access to quality stock designed to meet the specific requirements of Property Investors. If you are interested in buying an investment property, and do not want to do all of the running around and organising that is involved with buying a property or building a new property, then just ask us, we would be happy to introduce you to our contacts who will get you earning rent in your investment property sooner.
Property Investing Tips & Tricks
Is it easier if I already own a property?
If you already own your own home, you will be familiar with the property purchasing process; it is not that difficult to take your next steps in purchasing a property for investment.
Utilising the equity in your home to finance an investment property is a great way of putting your property to work for you. This will often be a more cost-effective option as it can allow you to borrow the full purchase price, and the settlement costs, without incurring the cost of any mortgage Insurance (provided you have sufficient equity in your home). We can also show you how to let the bank pay all of the purchase cost (so you don’t have to put any cash into the purchase) using your existing equity, and make sure your property is working to increase your overall wealth.
Negative gearing*
When the return or income you receive from your rental property is less than the expenses of owning that property (interest on your loan, council rates etc) – the property is said to be negatively geared.
In some instances the Australian Taxation Office will allow this ‘loss’ incurred on the investment to be offset against other income, as a tax deduction.
With Depreciation being an acceptable deduction for most property investors, a property may even be cash flow positive but still able to get some negative gearing benefits, meaning a tax deduction. It is important that you get a Depreciation Schedule on your investment property to ensure you are getting the maximum deductions allowed.
Example:
| Rent received | 9,000 |
| Expenses incurred | 12,000 |
| Loss which may be claimed as a tax deduction | 3,000 |
*Consult with your tax adviser to see how negative gearing can be applied to your personal situation.
Seek independent financial advice
The old adage that if an investment opportunity sounds too good to be true, it usually is – holds true. Always be sure to research your investment decision thoroughly. Be sure to seek independent property and financial advice for positive lending solutions
If you are turning to property investment for capital growth, tax benefits and as a retirement strategy, it is very important to learn as much as you can, especially if it is an area you’re not completely familiar with.
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