Standard Variable Loan
Most Banks and Lending Institutions have a Standard Variable Loan. This type of loan is the most common as retailed or advertised by the Banks and normally consists of all the features and benefits associated with a variable loan in today's market. (some features and benefits might be : Redraw Facility, Offset account, Portability, ability to split the loan ) Most Banks also offer a cheaper version of this loan, but they may have more restrictions and less features or Benefits, however, the cheaper interest rate also reflects this.
Introductory/ Basic Variable loans
Similar to the Standard Variable loan above, however, these loans normally have a cheaper/ Lower interest Rate. Terms and conditions also vary depending upon the Bank, for example, there may be an early exit fee to get out of this loan in the short term. Being a "Basic" loan, as the title suggests, you would not get all the features and benefits of the Standard Variable Loan, but then, you are not paying for them either!
Fixed Loans, 1 to 10 Years
You are able to fix a loan at a specific Interest rate (as offered by the Bank) for between 1 to 10 years. Normally, the longer the term, the higher the interest rate. Once you "Fix" a loan, you have signed a contract to Fix the loan for that period, therefore, because it is a contract, you may be charged a fee to get out of that contract. During the fixed contract period, you may also be limited as to what you can do with your loan because as it is "fixed", you can't change or alter the loan in any way without attracting a fee or penalty. Please carefully read the loan criteria before signing up for this loan to determine if it suits your requirements. One reason why someone would like this loan concept, is that they will know exactly what they will be paying every month for the next (say) 5 years, which is good for budgeting or for people who don't like to take risks with the variable rate rollercoaster.
Line Of Credit
Simply, this type of loan is easily described as having a large credit card. You are given a limit at which you can borrow up to for any reason you wish. You can withdraw money and credit money back into the account whenever you like. As an example, Self Employed people may find this type of loan valuable to have access to funds whenever they need them, then credit the funds back when they are able. As interest is calculated on a daily basis, this loan also works particularly well for people who budget well and all their income might go directly into the loan (bringing the Principal and interest down on a daily/ weekly basis) whilst they live off a credit card (say 55 days interest free) which is cleared monthly by the loan. This is very effective if used correctly, in getting the loan reduced faster than any other loan. As with all loans, you will need to read the Banks Loan criteria carefully before signing up for this revolving facility.
Many self employed people or people who are not able to verify their recent income for a variety of reasons now have access, through EZ Finance, to a variety of great competitively priced home or commercial Lo-Doc loans, where minimal income verification is required. The major banks do not have an appetite for these types of loans, as they prefer the low risk, fully verified customers. Speak with our Lo-Doc loan specialists today and you might be surprised as to what we can do for you. The finance market continually changes, to the extent whereby you might be able to get a loan today that was impossible to achieve a year ago.
Bad Credit Loans
Sometimes, bad things can happen and you might find that a credit default appears on your credit file.This could even happen with out your knowledge, causing your next finance application to get declined! EZFinance can check this for you in advance, so that you can confidently apply for the right loan. If you do have a credit problem, don't despair as we may have a variety of solutions which could help you to get the finance you need.Go to our FORMS DIRECTORY tab on our home page to have a look at the "Credit Scores" pamphlet for more info.
Your needs and situation are like no one else’s.
A home loan deal that saves your neighbour money might not be the most appropriate deal for you. That’s why our Finance software platform comparison tool and the experience of our Lending specialists really make a difference.
An EZ Finance Lending specialist will identify your specific borrowing requirements, then use our Finance software platform to compare hundreds of home loans against those requirements. An hour with an EZ Finance Lending specialist could save you thousands of $$ in the long run.
From the moment you choose a mortgage, your EZ Finance Lending specialist will walk you through the entire home loan process, from application to settlement and beyond. They’ll also show you where to sign and explain exactly what you’re signing.
When you work out which is the best loan for you, all you need then is to find the right bank or Lender which has the best interest rate, lowest fees, convenient locations with perhaps internet access! The list goes on, but that is where EZ Finance can help you through the maze, - quickly and "EZ".
EZ Finance Lending specialists can assist you either face to face (where possible) or by phone and email. It is also becoming more and more popular to complete a finance application online and have it approved promptly thru our Finance software platform.
Under the new National Consumer Credit Protection act any loan that is predominately used for residential or personal use will be assessed as a coded loan. This applies to investment and owner occupied properties.
The EXCEPTION to this rule is if the borrower is a Company / Trust
Essentially, what this means is that in all cases the Bank/funder and our Lending specialist will now be required by law to be comfortable that the borrower can service any debt.