Please click on any of the following links to view detailled explanations:

» Home Loans and Property Investment Loans

» Seniors Equity Access Loans

» Personal Loans

» Novated Leases

» Commercial Leases

» Commercial Loans

» Deposit Bonds

» Asset Protection

 
HOME LOANS AND PROPERTY INVESTMENT LOANS

Home and Investment Property Loans are for those :

• Purchasing
• Refinancing
• First home buyers
• Investors
• Land Purchasers
• Building a new house
• Renovating and extending
• Consolidating Debt

There are a range of home loan products available. Different lenders have different names for their products however most can be differentiated in the following ways:

• Standard variable
• Basic variable
• Introductory rate loans
• Fixed rate loans
• 100% Offset loans
• Equity loans
• Line of credit
• Home to home loans (bridging)
• Construction loans
• No deposit home loans
• Lo doc / no doc loans
• Non-conforming loans
• Credit impaired loans

Standard Variable

Standard variable loans are the most popular loan product. Standard variable loans are for customers who require a variable interest rate with maximum flexibility. They offer both flexibility and desirable features such as the ability to split the loan, make extra repayments, and a loan re-draw facility. The interest rate may vary and can increase or decrease. The loan term is usually 30 years.

The main disadvantage is that if interest rates rise you will have to make higher repayments.
 

Basic Variable

Basic variable loans, generally offer a lower interest rate than the Standard Variable loan but also include fewer features and less flexibility. A Basic Variable Loan is best suited to a budget conscious borrower looking for a ‘no frills’ loan.

Many lenders now offer basic variable loans with lower interest rates than standard variable loans but with fewer features. Like all variable loans, the interest rate and your repayments can vary over the term of the loan.

The main disadvantage of basic variable loans is that they do not offer the same range of features or flexibility as other variable interest rate loans. For example, many basic variable loans cannot be used in combination with other loans and are not portable.
 

Introductory rate loans

Introductory rate loans also known as discount variable rate home loans, and honeymoon loans are for customers who want the same features of a standard variable home loan with an introductory or honey moon rate which is usually lower for the first 6 or 12 months. After this period the loan reverts to a standard variable rate and the repayments increase.

The interest rate is usually low to attract new borrowers and normally lasts for a period of six months to one year. Rates can be fixed, variable or capped. After the introductory period, most introductory loans revert to the standard variable rate. Also called a discounted or honeymoon rate. Some lenders allow you to switch to another product eg. 100% Offset or fixed rate after the introductory period.
 

Fixed rate loans

Fixed rate home loans are for customers who are concerned that interest rates may increase and want choose a rate that is fixed and will not change over a specified term. This means that the monthly repayments will remain the same for the duration of the fixed period.

Fixed rate loans allow customers to fix the loan rate for a predetermined period of time usually 1 ­ 5 years. At the end of that time the loan reverts to a variable rate or can be renegotiated to another fixed term. Fixed loans may have more limited features that variable loans, eg. some lenders allow you to make extra repayments for no fee. However, fixed rate loans do not generally have a redraw facility.

Customers can choose to lock in the fixed rate at the between the time of application to settlement. This normally incurs a fee. With a rate lock, the rate is generally capped at the approval rate for a short period of time eg. 2 months. If interest rates declares during that time the customer is eligible for the lower rate, and if they increase the customer is eligible for the 'locked in' rate.

The main disadvantage of fixed rate loans is that if interest rates fall during the fixed period you will be paying a higher rate by comparison and they lack the flexibility of other products.
 

100% Offset loans

100% Offset loans, also known as mortgage offset loans combine the benefits of a separate savings account with a home loan, where excess funds in the transaction account are used to offset against the loan principle thereby reducing the amount of interest calculated on their home loan. Any money you put in the offset account is deducted from your loan balance before interest is calculated. The benefit of this is that customers retain full access to their funds in the transaction account. The interest rate on the offset account is the same as on the loan.

Some conditions may apply to offset accounts. Whilst most lenders offer mortgage offset account facilities the amount and percentage of offset can vary between lenders, so check the product features carefully.
 

Equity loans

Home Equity Loans offer a revolving line of credit which provides access to the equity in your home, usually up to 80% in total of the value of your home/ property. A Home Equity Loan lets you borrow against your equity for any worthwhile purpose at an interest rate which is lower than a personal loan.

Equity Loans are for customers who want access to the equity in their home to use funds for other purposes e.g. wealth creation and lifestyle, managed funds, holiday, home renovation, purchase a car or financing an investment.

The main disadvantage of this type of loan is as with a line of credit, it is possible to reduce the equity built up on your home.
 

Line of Credit

A line of credit is an interest only variable rate loan secured against a residential property allowing access to funds whenever you need them. They have the added flexibility of a transaction account built into the home loan that enables you to draw down funds as you need them.

Line of credit products are flexible ways to raise funds for investment purposes by providing cash at call up to the prearranged credit limit.

The main advantages of lines of credit are that you can use the money as you need it and pay it back when you can, interest rates tend to be lower than for credit cards or personal loans, credit limits are usually higher than for credit cards or personal loans.

The disadvantage is that unless you are careful, it's possible to reduce the equity you have built up in your home.
 

Home to Home loans

Home to home loans are also known as bridging loans, and are a short-term housing loan where interest only payments are either paid by borrowers or capitalized into the loan. The principal is due for repayment at the end of the loan term. This type of loan has been developed to meet the needs of borrowers who purchase a new property prior to selling their existing one. Standard variable interest rates usually apply during the 'bridging period' following which the customer can convert from a standard variable loan to an alternate product with their lender.
 

Construction Loans

Construction loans are for customers who are planning on building a residential dwelling. They are generally a standard variable product, and only require interest only repayments during construction phase. On completion of construction, customers can choose to convert from a standard variable loan to an alternate product with their lender. This may require a switching fee, however does not normally incur an new application fee.

Construction loans are normally set up to make a maximum of 5 progress payments.
 

No Deposit Home loans

No deposit home loans are for customers who have been unable to save a deposit for a property and depending on the lender are available for both owner occupier and investors. They are suited to people who have little equity but a good cash flow. They can be available for houses, house and land packages, building loans, strata units and town houses. They normally involve a loan extension fee which can vary between 1.5 and 2.5% of the total loan amount.

This type of loan is not available for refinances, nonresidents and discharged or undischarged bankrupts.
 

Lo Doc / No Doc Loans

Lo Doc or No Doc Loans are specifically designed for applicants who are self employed, PAYG, seasonal workers and small business owners who have income and assets but may not have the traditional forms of income evidence such as financial statements or tax returns at the time of the application. This type of loan is generally flexible and includes a variety of features.

Lo Doc loans are for customers who are not able to provide evidence of income in the normal way. Lo Doc loans are most often used by self-employed persons, however can some lenders will approve Lo Doc loans for PAYG customers who may have difficulty in verifying their income, particularly commission based occupations.

The maximum borrowing for Lo Doc loans is generally up to 80% of the value of the property. Interest rates for Lo Doc loans are competitive however do vary and can be slightly higher depending on the lender.
 

Non Conforming Loans

There are many different reasons for why a person does not meet the typical lending criteria for taking out a loan. Non Conforming Loans are designed especially for such circumstances.

Some of the most common reasons include:

• Newly employed
• Working part-time, casually or as a contractor
• Insufficient records of past savings
• Inadequate deposit amount
• Non-existent credit record
• A change in life events such as recently divorced or temporarily unemployed
• Age
• Non traditional security

Loans available to borrowers who previously have been refused finance for not meeting lenders' traditional criteria. These include, self-employed people, contract and seasonal workers, the credit impaired, senior citizens.

The main disadvantage of this type of loans is that they often have a slightly higher interest rate and/or fee structure than conforming loans.
 

Credit Impaired Loans

Credit Impaired Loans are designed for customers who have had loan arrears, unpaid or paid defaults and judgments, or even a bankruptcy history. If you believe that you may have a credit history concern, it is best to verify early that all the information in your credit report is correct. To obtain your own credit history report visit www.mycreditfile.com.au.

 

SENIORS EQUITY ACCESS LOANS

Seniors Equity Access Loans also known as Reverse mortgages are for customers aged 60 years and over who are 'asset rich - cash poor'. This type of loan allows customers to unlock the wealth in their home to provide more options during their retirement. Funds can be received either as a lump sum upfront, as a regular monthly payment or a combination of both.

The loan amount available is based on a percentage of the value of the property and the age of the customers. The minimum loan size is $20000. There are no repayments for the life of the loan. Most lenders charge an application fee which varies from lender to lender.

The main advantage of this type of loans is that it allows customers to stay in their home for as long as they want to and continue to benefit from the capital growth on their property. If they sell their property the reverse mortgage can be transferred to another property subject to meeting the lenders approval criteria i.e. 25% LVR or the loan can be paid.

The disadvantage is that over time you are reducing the equity you have built up in your home. This however may be counteracted to some extent depending on the % of capital growth you obtain from your home.

We recommend that customers discuss Senior Equity Access loans with your family as well as your solicitor, accountant, broker or financial adviser before entering into this type of loan. It is also recommended that they liaise with Centrelink Financial Information Services to ensure that this does not affect their pension. Their contact number is 132300.

LoanPort has access to the following senior equity access loan products available with the following lenders: BankWest, Bluestone Mortgages, OFM investment Group, St George Bank and Macquarie Residential.
 

 

PERSONAL LOANS

Personal Loans can be used by you for any worthwhile purpose including buying a car, boat or caravan, taking a holiday, wedding expenses, buying furniture and household goods, paying tuition fees, repaying credit card debt.

Secured personal loans require some form of security e.g. car, boat to cover the amount being borrowed. Unsecured personal loans eg. wedding, holiday tend to have slightly higher interest rates as they do not require any security.

We have access to a range of lenders who provide secured or unsecured personal loans with competitive interest rates and flexible repayment terms.

 

NOVATED LEASES

Novated leases are designed for employees who have access to salary packaging with their employers. A novated lease is a three-way agreement between an employer, an employee and the lender which involves the following:

• the employee leases the vehicle directly from the lender
• the employer, employee and the lender enter into a deed of novation
• the employer agrees to deduct the lease payments from the employee’s salary during the term of the novated lease or their employment and to pay the rentals directly to the lender

Novated leases are generally for a two to five year term with residuals set in line with Australian Taxation Office guidelines and may be subject to Fringe Benefit Tax implications. You should seek independent financial and taxation advice on the individual benefits for you entering into a novated lease.
 

 
COMMERCIAL LEASES

LoanPort has access to the following lenders for commercial leasing Capital Finance, Macquarie leasing and Esanda. Each lender is a specialist equipment lender, providing finance for a wide variety of assets for business applications, LoanPort is able to arrange the following products:

• finance leases
• novated lease agreements
• commercial hire purchase
• chattel mortgage
• rental/operating lease

Each lender has specific criteria they will finance, The range of products that finance is available for includes:

• Manufacturing plant & equipment
• motor vehicles
• commercial vehicles
• construction, engineering and mining plant and equipment
• materials handling equipment
• medical and dental equipment
• office equipment and computers
• general business equipment
• marine and aviation

 
COMMERCIAL LOANS

As members of AFG, LoanPort has access to experienced Commercial Loan Writers, for arranging commercial and business loans in specialised areas. AFG has arranged accreditation with a variety of specialised lenders to cover all aspects of commercial lending including:

• Commercial investment finance
• Owner occupied commercial loans
• Business loans
• Commercial and residential construction loans
• Hospitality industry finance
• Farm and agribusiness finance
• Factoring and trade finance
• Subdivision, development and corporate finance

AFG’s appointed commercial loan writers have many years experiencing in solving the challenges of placing commercial and business finance proposals, with the most appropriate lender and on the most attractive terms applicable to each proposal. And if a chosen lender cannot assist, an alternative source of funding will be approached. For further information contact LoanPort to discuss your finance requirements.

 
DEPOSIT BONDS

Deposit Bonds are for customers who require a large deposit to purchase a property and do not wish to use their own cash funds, eg. 'off the plan' purchase, auction bidders, purchasers who have equity in their home but no liquid assets and purchasers waiting to liquidate other assets.

A 'bond' provides an insurance policy for the seller of the property. If you don't come up with the money, the insurance company will compensate the seller by paying them the agreed deposit. This secures the property for you until settlement.

 
ASSET PROTECTION

At LoanPort we not only assist you to finance your assets, we can also assist you to protect them. We have two streams of asset protection:

• General Insurance
• Lifestyle Protection insurance

General Insurance

As your Finance Broker, we pride ourselves on getting to know you and we understand that your financial matters are very important and so is your time. As yet another service to you, we’ve established a way in which you can arrange general insurance quickly and easily, saving you time and effort.

We can put you in contact with the insurance company, Allianz - a large and well-established general insurer. In fact, Allianz is part of the Allianz Group, one of the world’s leading insurance and financial services providers, which services approximately 60 million customers in over 70 different countries - 2 million of those customers are already in Australia. Allianz can offer you home and contents insurance, a range of general insurance products with features and benefits for everyone.

Arranging your insurance is easy! Simply contact Allianz directly by calling 1300 360 574 for

• home and contents
• comprehensive motor
• third party property damage
• caravan and trailer or
• landlords insurance

There are no forms to fill in and you don’t need to visit an office. One call and you can buy a new policy with ease and within minutes. Allianz can be contacted Monday to Friday from 8:00am ­ 9:00pm EST, so you can organise cover at a time that’s convenient for you.

To obtain a competitive quote, please mention the following reference:

34M349 Catherine Ivanhoe, LoanPort or

34M37C Diana McKenzie, LoanPort

Lifestyle Protection Plan Insurance

Lifestyle Protection Plan Insurance is designed provide you with protection and peace of mind, knowing that if you die or are unable to work due to injury or illness you will have assistance in maintaining the lifestyle of you and your family, subject to the terms and conditions of the policy.

Lifestyle Protection Plan Insurance is divided into two parts:

Disability Cover which is designed to pay the monthly benefit you elected if you are unable to work due to injury or illness. and/or

Death Cover which is designed to pay the lump sum benefit you selected, if you should die.

This insurance provides 24 hour cover at work, home, at leisure, worldwide 24 hours per days, 7 days per week, 365 days of the year.

The insurers are Allianz Australia Insurance Limited for Part 2 if you have disability cover of the policy and TOWER Australia Limited is the insurer for Part 1 if you have death cover of the policy.

This insurance product is very flexible and you can decide on the level of insurance you would like to be covered for.

This product is only available through a Finance Broker network at this stage, so please contact LoanPort for further information and to receive a copy of the Lifestyle Protection Plan Insurance Product Disclosure Statement.