Types of Property Loans:                                             

Traditional

These loans are suitable for:
     Australian citizens who have a good regular income with 20+% deposit or other property to offer as security to the loan & have good credit.
You see these loans offered on every street corner by brokering agencies and banks all offering various gimmicks [no application fees, offset account attached to loan, honeymoon interest periods, interest payback, 105% loans etc. a new one every day] If your income sources are not clearly visible [like a pay slip or company tax returns] you can opt for a low doc loan option for more interest payable & usually not over 80% of property purchase price [lending to valuation ratio known as LVR] All lenders have differing LVR’s for property types. They list these according to postcode & property zoning.eg most lenders will not lend above 60% for rural. When you get above the LVR values banks require mortgage insurance which becomes increasingly more expensive as LVR rises & as there is only two mortgage insurer’s in Australia these guys quite often kill the deal if one letter is out of place.

My own Home Loan This is your most common loan in Australia & comes with fixed or variable interest & a full box of gimmicks to choose from. Actual interest rates charged depends on your credit  worthiness & lender policies.First home buyers with good credit/savings record/income/deposit will generally get this type of loan. We regularly organise 100% loans for the first home buyer using FHOG to cover costs of the mortgage insurer.

Buy to Let Loan  This is a loan taken out by investors and has proved popular in Australia over the years & is driven by the lack of faith in pensions & superannuation ,combined with under performance of the stock market. Over the last 30 years property across the boards has doubled every 7 years boom or bust so it has proven performance, hence it's popularity

Equity Release Loan This is a loan where a person refinances his property to pull more cash out of it as the property increases in value as time goes on. Quiet often this money is used as a deposit for a "buy to let"loan or to purchase a business or to help one over a cash crisis

Reverse Mortgage Relatively new on the Australian scene. This type of loan is designed for the older home owner who trades some equity in his home to the lender in exchange for some cash now.

Debt ConsolidationLoan This is a process of combining multiple debts [such as credit cards, personal loans etc ] rolling these all into one loan secured against property to acheive a lesser ongoing repayment amount. This is accomplished by refinancing any existing mortgage to use more equity in your property.

Non Traditional
These loans are provided by various individual & organizational Investors. If you have been turned down repeatedly by traditional lenders, had your credit ruined by a phone or utility company, fallen foul of the F.I.R.B. then a non traditional loan may be the order of the day.

These loans are suitable for:
    • the renter wanting to get into home ownership
    • overseas investors
    • foreign students
    • persons with minimal deposit
    • persons with bad credit

Rent to Own Home Loan. The structure of the loan is set up in various ways to suit the purchaser & is a combination of buy price & interest charged.

Joint equity purchase Loan. Property is bought with a shared equity with investor & equity is paid out at a later date.

Sweat equity Loan. This is a loan where a purchaser wishes to use their sweat [valuable improvements done to house] as a partial or full deposit for the purchase of a home.The lender credits the increase in property value as a valid deposit paid when applying for a home loan.

Wrap around mortgages. The investor wraps his own mortgage around the underlying mortgage generally with a interest margin between the two mortgages

Investor Friendly Loans. These are loans where the interest rates are subsidized for the first few years [2-3% of the interest is capitalized] till rents & property value builds up. This allows for the investment property to remain slightly cash positive in the first years where the holding costs hurt most.

Click Here For:

 

For more information on 100% home loans for 1st Home Buyers

For more information on how non traditional loans work

For more info on Australian loans for non-resident

If you have a big cash crisis & need to get out under

Home Loan Video Information

Finance Information

Bad credit problems

Hot-Properties
To find non-traditional australian real estate to invest in.