Residential Products

Instead of trailing from lender to lender, making endless phone calls or searching the internet, Westpro Finance can do all the work for you. If you choose to search yourself, you might be lucky to compare three or four different products. Whereas, brokers can compare hundreds of loans and help you get the right home loan.

We will also help you understand the various deals that are on offer, explaining all the features and details that might make a big difference to your repayments and the life of the loan. And what's more, we will lodge the application ( in most cases, electronically, saving time) and chase the lender.

There are many different types of residential loans available in the market today, but let's look at the ones most requested by you - the applicant:

 

Fixed or Variable Rate Home Loans

The basic interest rate on a home loan is known as the standard variable rate. The rate is calculated using the interest rate set by the Reserve Bank of Australia, which changes according to economic criteria set by the Bank. As the name suggests a variable rate loan may go up or down during the term of the loan.

Many lenders also offer loans at a fixed interest rate. This means that your interest rate does not change for a given period of time – usually from one to five years.

Fixed rates are generally higher than variable rates, because they include a premium to keep the rate fixed, and thereby protect against the risk of rising rates. The longer the term, the higher the premium.

The certainty of a fixed rate can help with budgeting in the early years of a home loan – it’s good protection against the unexpected.

  

Split loans

If you are attracted by the certainty of a fixed rate, but would like some flexibility, then you might consider a split loan.

You can choose which proportion of your loan you would like at a fixed rate and which you would like at a variable rate.

You benefit from the lower rates and flexibility of a variable loan, but also give yourself some protection against potential rate increases.

  

Basic home loan

The main feature of a basic home loan is a very low variable interest rate with little or no regular fees.

These loans offer few extra features. For example, if you want the flexibility of a redraw, you generally pay extra.

  

100% offset loans & accounts

With an offset account your income is paid into an account that is linked to your loan. You can use the account for all your:

·         EFTPOS

·         cheque

·         Internet banking

·         credit transactions.

The balance in the account is offset against your loan. The more money you keep in your account, the faster your loan is reduced.

These loans are usually charged at the standard variable rate or higher, and may have other fees.

  

Line of credit

With a line of credit, or an "all in one" account, you pay all your income into your loan account. Essentially it all goes to pay off your loan, but you also use your account as your cheque, credit and savings accounts combined – almost like a simple redraw facility. Keeping money in the account can reduce your loan amount and your interest payments.

You have a pre-approved loan amount that you can access bit by bit, or all at once.  This is a very flexible way to borrow, but interest rates tend to be higher than standard variable rates, and there are usually fees.

These loans are more difficult than standard loans for most people to repay because there is no set monthly repayment.

 

Professional packages

Professional packages can offer substantial discounts and special benefits, but are only available to those who satisfy specific criteria.
The key criteria for most professional packages are that the home loan be in excess of $150,000, and that you earn more than $50,000 per annum.

You do not actually need to be a white collar ‘professional’ to qualify. 
The benefits vary between lenders but in general can include interest rate discounts of between 0.50 and 0.75 per cent for the life of the loan, lower fees and discounts on other bank products.
(depending on your loan amount, some funders will offer discounts of up to 1-00% of the Standard Variable Interest Rate)

These are generally great products and well worth considering if you qualify.

  

Low Doc home loans

With no need for documentation to prove income, low doc home loans are designed for borrowers who would not normally comply with the usual income verification policies for standard home loan products.

For example, people with irregular income streams such as the self employed those who have difficulty in separating their personal and business cash flows, or who do not yet have up-to-date financial statements.

Borrowers must complete a self-assessment of their financial position in the form of a declaration and they should be sure that they have the ability to repay the loan without undue hardship. Lenders require a substantial amount of equity in the property being offered as security and a clean credit history.

  

Bridging loans

A bridging loan (or relocation loan) is a short-term loan that covers the gap period between purchasing your new property and selling your old one.

These loans are offered at the standard variable rate and usually have a term of six months if you are selling your property.

Each lender assesses bridging loans differently, so it pays to use a broker. All lenders will require you to have significant equity in your property for a bridging loan.

 

Interest Only Home Loans  

Description

Interest Only payments cover the interest component of the loan balance only. Selection of this option means that the principal loan amount will not be reduced. 

Term

Interest Only terms must be in whole years and can be established at any time during the life of the loan. Customers may extend the Interest Only term beyond their initial specified period, providing the total Interest Only period for the life of the loan does not exceed the maximum term below. 

The Interest Only terms available are as follows:

Home Loan

Investment Home Loan

1 to a maximum of 10 years

1 to a maximum of 15 years

 

Note: A credit assessment is required where a customer requests for a switch to an Interest Only period of more than 5 years at a time. 

Conditions:

  • Interest Only payments must be made via direct debit from a related account
  • For loans involving third party guarantors or a security provider, consent to change Interest Only payments must be obtained. 
  • Interest Only payments are allowed during a bridging period on new and existing loans. The Interest Only period may equal the bridging period or may extend beyond the bridging period, subject to further credit assessment.

Interest Only payments are not allowed where the loan to security ratio is greater than 80% and Lenders Mortgage Insurance (LMI) is not held.

  

Building or Renovating

 
A great way to get the house you want is to build or renovate. You have the freedom to add quality craftsman and the design features that you value. Creative projects are both exciting and stressful - that why we are here to help with the  basics like getting the right mortgage and saving money.  

When you are building, there are two ways to approach the project:

  1. Project Builder with a fixed price building contract
  2. Owner Builder with an estimation of the cost to construct  

Project Builder

Requirements - Builder Specifications, Building Plans, Tender/Signed Building Contract,Valuation to be completed by bank appointed valuer. Loan amounts are 95% of the value of land and building.

Owner Builder

Requirements -Fully completed Owner Builder Estimate to  Construct Costs to be provided, provide  written details of that work that is to be carried out by the Owner Builder, Copy of Owner Builders Licence/permit, copy of council approved plans, copies of builders risk insurance or a certificate of currency, valuation of the " On Completion Value" to be completed by a bank appointed valuer. Loan amounts vary between funders but as a general rule, maximum loan amount to be 60% of the land value and total construction costs ( LVR's to 70% may be considered of the applicant is a registered builder employed in the building industry)

  

Guarantors Support

A guarantor support is available to assist customers obtain a home loan when they are unable to provide adequate security in cases where the loan amount exceeds normal lending margins: and/or if the applicant/s are unable to provide adequate servicing ( for non-personal borrowers only).

  

The following options are available:

Borrower Type

Type of support available

Personal

Guarantor for security support

Non Personal

Guarantor for security and servicing support

 

For more details,click here...Guarantors Support

 

Deposit Bond  

A  Deposit Bond is a guarantee that you will pay the deposit money at settlement, instead of paying the deposit upfront. It's a convenient alternative when your deposit money isn't immediately available (eg tied up in your current home, a term deposit or other investments or in the form of a government grant).

Overview

Guarantee

A deposit bond is a guarantee that conveyancer deposit on a property

Cash Substitute

Convenient substitute if you can't or would prefer not to access your money - for example - if your money was tied up in other investments or if you have sold a property and not yet settled

Up to 10%

Can be set up to 10% of the P/P

Flexible

Can be used for residential or investment property purchasers, vacant land, commercial properties

Auctions

Convenient for attending and bidding at multiple auctions

Valid for 6  months

It's valid for 6 months from the date of issue, giving you plenty of time to settle on a new property

First Home Buyers

Suitable for First Home Buyers where the FHOG is not provided until settlement

Experienced home purchasers

Suitable for experienced investors or purchasers buying and selling property simultaneously

  

  

  

  

  

 

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