Home loan
Getting the right home loan is no easy task. There is a lot of choice and lenders are very aggressive in marketing their range of loan products. We believe that a qualified and licensed finance broker is the best person to help you sort through the options and recommend the best product available.
With over 60 plus years’ experience our team of mortgage, finance brokers and financial professionals have delivered tailored services and even better customer satisfaction to our clients.
Not all loans are the same. Factors such as interest rate, fees, product features and structure all vary from lender to lender. We believe that if you choose to deal directly you are putting yourself in a position of disadvantage.
In addition, we will save you time and reduce the stress associated with the complexity of comparing home loans and their features.
We will help you to:
- Get the best possible deal
- Remove the stress associated with seeking finance
- Set up the right loan structure to suit your needs/requirements
- Understand the whole process from start to finish (communication!)
So, whether you are buying your first home, investing in residential or commercial properties or wanting to refinance you existing home loan, First Grade Financial Solutions can help you.
There are many different types of home loan products on the market. Not surprisingly there is not a one size fits all product, this is where First grade Financial Solutions can help you.
At First Grade Financial Solutions we understand this is a big step towards your financial security and is also a very exciting and challenging time in saying that we understand how confusing it can be to try and navigate your own way through the process alone. This is where we at First Grade Financial Solutions can help you take that next big step.
First and Second Mortgage
When most people purchase a home or property, they take out a home loan from a lending institution which uses the property as collateral. This home loan is called a mortgage, or more specifically, a first mortgage. The borrower is required to repay the loan in monthly instalments made up of a portion of the principal amount and interest payments. Over time, as the homeowner makes good on his/her monthly payments, the value of the home also appreciates economically. The difference between the current market value of the home and any remaining mortgage payments is called home equity.
A homeowner may decide to borrow against his/her home equity to fund other projects or expenditures. The loan he/she takes out against his/her home equity is known as a second mortgage, as he already has an outstanding first mortgage. The second mortgage is a lump sum of payment made out to the borrower at the beginning of the loan. Like first mortgages, second mortgages must be repaid over a specified term at a fixed or variable interest rate, depending on the loan agreement signed with the lender. The loan must be paid off first before the borrower can take on another mortgage against his home equity.
Since the first or purchase mortgage is used as a loan for buying the property, many people use second mortgages as loans for large expenditures that may be very difficult to finance. For example, people may take on a second mortgage to fund a child’s college education, or to purchase a new vehicle. Second mortgages also can be a method to consolidate debt by using the money from the second mortgage to pay off other sources of outstanding debt, which may have carried even higher interest rates.
First Grade Financial Solutions are experts in first and second mortgage, so give us a call on 0417501506 and let’s see what we can do for you!
First Home Buyer
Planning your first step onto the property ladder? Taking out your first home loan can be daunting!
It is an exciting time, but also a time when questions and confusion may arise. We are here to help. We can take you step by step through the process of buying a house, what the banks and lenders are looking for and what your options are with the First Home Buyers Grant and stamp duty savings.
We are happy to have a chat without any obligation to ensure you get the right information from the beginning.
Investment Loan
Property investment loans are not too different from regular home loans. As with other loans you can choose between:
Variable interest rate
Here the rate you pay fluctuates typically in line with changes to the official cash rate. This type of loan tends to have a range of flexible features like redraw however as investors can usually claim the loan interest as a tax deduction there may not be much incentive to pay off the loan sooner. So, the features of a variable rate loan may not appeal to investors as much as they do to owner occupiers
Fixed rate
A fixed rate is often very useful for investors as it provides certainty of repayments. This can be helpful because the rent payments on a property will be fixed during the lease term, and even if market interest rates rise the landlord may not be able to raise the rent until the lease expires. By locking into a fixed interest rate, investors have more certainty about the repayments on their property and a more manageable cash flow
Split rate
Like homeowners, an investor can choose to split their loan between fixed and variable rate components
There are two types of loans that tend to be particularly attractive to investors:
- Interest only loans
- Line of credit loans
Interest only
With most standard home loans your repayments are made up of interest charges plus a small repayment of the loan balance. In this way you slowly chip away at the original amount borrowed over the term of the loan.
Where an interest only period is present the loan principal remains the same unless you choose to make additional payments. You only have to pay the original amount borrowed if you sell the investment property or if the interest only period expires.
This type of loan is useful for investors because during the interest only period of the loan:
- Your monthly repayments are less than they would be if you were to pay off principal as well
- You can get a tax deduction for the interest payments, but not for principal repayments
Line of credit
If you already own a property, a line of credit offers a way for you to tap into any equity you have built up in that property and, use it as a deposit for your investment property.
This type of loan is useful for investors because:
- A line of credit loan allows you to draw from a fixed amount at any time to pay for any additional expenses
- It is kind of like a credit card with a big limit but the equity in your home acts as security for the loan
How can a First Grade Financial Solutions can help you?
With so many loan options available it is important to have the loan in place that best suits your needs and investment strategy. So, speak to a First Grade Financial Solutions today who can look through sift through the thousands of investment loans offered by a wide variety of lenders to help you make the choice that is right for you.
Self Managed Super Funds
Do you want to unlock your superannuation to build wealth through property? SMSF could be the answer.
Self-managed superannuation funds (“SMSFs”) can now borrow money to help purchase Commercial and Residential properties. This allows you to build long-term personal wealth by building a diversified portfolio of investments whilst benefiting from available tax concessions.
SMSF is a ready-made solution that can be cost-effectively integrated with an existing SMSF or established in conjunction with a new SMSF.
Superannuation laws are complex, convoluted and the consequences of non-compliance can be serious. To give you a peace of mind, we at First Grade Financial Solutions can direct you to the right people to comply with all current tax and superannuation laws, although we still recommend that you obtain your own independent advice.
To find out more about how SMSF works call us on 0417 501 506
Low Doc Loans
A low doc loan or low-documentation loan is for someone, generally the self-employed, who has difficulty coming up with the necessary documentation required to apply for a traditional home loan. This may include those with a poor credit history or who do not work full time.
Low doc loans traditionally have higher rates of interest than traditional loans, as they represent greater risk to the lender. As a result, borrowers applying for a low doc loan may be required to secure the loan with assets such as vehicles, homes you own or other investments.
