Pepper Homeloans
...opening doors
Pepper Homeloans opens more
doors for self employed and credit impaired clients
Pepper Homeloans can
assist with the following:
With Pepper
Homeloans you will discover:
Pepper Homeloans
offers award winning home loan products to suit a variety of
borrowers.
If you’re self-employed, have been given a gifted deposit, own a
small business, invest in property, have past credit impairments, or
simply don’t conform to traditional lending criteria, Pepper
Homeloans may be able to help.
Service and product offerings are flexible and tailored to your
needs as Pepper’s specialist underwriting team assesses every home
loan application on its individual merits.
Pepper’s home loan products offer:
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Individual assessment from our
specialist underwriting teams
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Unlimited redraw*
-
Unlimited additional repayment
facilities*
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A simple and straight forward fees
-
No annual or account keeping fees
Other benefits
include:
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No additional interest rate
loadings for interest only home loans
-
No lenders mortgage insurance
-
No additional interest rate
loadings for rural or investment security loans.
Types Of Loan
There are a variety of home loans types, each offering different
rates and features.
A loan can usually be tailored to suit individual requirements.
Lenders will advise on the types of loan they have available. With
many packages on offer, it can often be difficult to work out the
differences, benefits and disadvantages. Make sure you understand
these before signing an agreement.
You should try to obtain as much information as possible and ask
lenders to explain terms and conditions of loan packages in writing.
Most lenders have software (Loan Simulators ) that can create a
model of a loan, according to variables such as the amount and
duration of the loan, and the frequency of repayments (weekly,
fortnightly or monthly). By entering these details into the
software, the lender can show you a graph of how much will be paid
off the loan each year.
Repayment options and switching costs should be taken into account
when choosing a loan.
-
A flexible
repayment option may be beneficial if you are planning to start
a family. A basic loan with less flexibility may not allow you
to vary your repayments.
-
Substantial
costs may be incurred for ending or switching from certain
loans.
Quick Tip:
The two basic home loans are:
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Variable loans, and
-
Fixed Loans
Variable Loans
Variable rate loans, where the interest rate can vary during the
life of the loan, are the most common type of home loan available.
The lender will adjust the rate, according to the economic climate
and the official interest rate set by the Reserve Bank. Competition
among other lenders may also affect the rate. While a fluctuation of
one percent may not sound like a lot, it can translate to as much as
$170 a month on a $200,000 loan.
Most Lenders will offer several types of variable loans, with
different rates and added extras. Generally, the loans with the
lower interest rates have less flexibility in terms of conditions
and fewer or no added extras.
Those with higher rates may offer extras such as redraw facility,
which allows you to draw on money already paid into the loan. They
will also have more flexibility conditions such as no restrictions
on making extra payments or paying off the loan early.
Fixed Loans
These loans are set at a fixed rate for a certain period –
generally, anywhere between one and five years. This type of loan
allows you to organise your finances and repayments without having
to worry about fluctuating interest rates. You will, however, take
the chance of not benefiting from drop in current interest rates.
Penalties usually apply for breaking the loan contact or paying off
the loan before the end of the fixed period. Most fixed loans have a
restriction on extra repayments and limited extra features.
Always check the conditions of your loan.
Split Loan
Many lenders will allow you the option of splitting a loan into a
partly fixed rate and a partly variable rate; at whatever percentage
the borrower chooses. For example, an 80% fixed rate with a 20%
variable rate. This allows you to customise the loan so as to
combine the security of the fixed loan with some of the flexibility
of the variable rate.
Capped Rate Loans
These are loans with rates that cannot exceed an agreed percentage
for a fixed period of time, but may decrease during the fixed
period.
Honeymoon Loans
This type of loan has rates that are lower for the first six to
twelve months. After this period the loan reverts to a standard
variable rate and the repayments increase. Remember to look past the
honeymoon period, be sure you have the capacity to meet the higher
repayments and know what you face for the duration of the loan. Also
be aware that at the end of the honeymoon period there may be
`switch costs` depending upon the type of loan chosen.
Bridging Loans
Timing can be crucial issue when selling one property and buying
another. Sometimes if the right property becomes available, it is
not always possible to wait until the current one is sold or
negotiate convenient settlement terms. A bridging loan can be used
to cover the financial gap when buying one property before the
existing one is sold. There is a certain time period, usually six to
twelve months, in which existing property must be sold. A bridging
loan can be secured by both the existing and new propertied.
Bridging finance may be expensive than ordinary home loan finance.
Vendor Financing
Finance is supplied by the vendor, rather than by an established
credit provider. This type of financing has been used for many
years, particularly in the purchase of farm properties. (See page 18
– ‘wrapping’)
Other Considerations
Early Repayments
Making lump sum payments or higher loan repayments will help you pay
off your loan sooner. It is also possible to shorten the term of the
loan by making more frequent or extra payments. While the term (or
repayment period) of many home loans is 25 years, the trend recently
has been towards shortening the term, for example, to 15 years.
Depending on the type of loan, there may be restricting on making
unscheduled payments or increasing the number of repayments.
Interest Rate Rises
In calculating the size of the loan and repayments, the borrower
should include a margin to allow for potential rises in interest
rates. In the last two decades rates have been as low as five and as
high as seventeen percent.
Mortgage Offset
Mortgage offset allows interest on savings held by a borrower to be
credited against interest charges on the mortgage. This in turn
helps reduce the term of the loan by dedicating more of your regular
payments to replaying the amount owing instead of interest.
Carefully check all terms and conditions.
First Home Owner Grant
The first Home Owners Grant Scheme provides eligible first Home
Owners with a non-means tested, one-off payment of $7000 (as of 1st
July 2000). This is regardless of the purchase of an existing home
or to build a new home.
Your lender, solicitor or conveyancer may arrange the First Home
Owners Grant application for you.
Whatever it is, I can discuss how your home
loan can work for you.
GET BACK ON THE
RIGHT TRACK
With OUR Proven Mortgage Broker Services........
..Without
Time Consuming Office Visits
We offer the following:
- Great comparison rates
- No monthly or annual fees
- No fee for extra repayments
- No fees for unlimited redraw facility
- Principle and interest or
interest only
repayments
- Monthly, fortnightly or weekly loan
repayments
