No Deposit or 100% Loans are designed to cover the full purchase price of a property. They are very useful loans for First Home Buyers, Divorcees or people with a limited deposit. First Home Owners Grant can be credited to costs to purchase.

The name of this product is a little incorrect, as it represents that there is no need for the client to contribute any money to the purchase. This is not the case. The 100% loan is for the purchase price, but all other costs must be covered by the purchaser. Other costs to consider (eg. $250 purchase in Victoria)

Example:

• Purchase Price: $250k (100% loan)
• Application Fee: $600
• Legals: $220
• Stamp Duty: $10,660
• Lenders Mortgage Insurance: $6,250

Total Monies required to settle on the property is: $17,710

Things to consider:

• Be sure you have enough deposit.
• Deposit Bond may need to be used to secure purchase with Real Estate Agent.
• Very tight Lender Guidelines for no Deposit Loans including Postcode restrictions.

If you are building a house and you require Construction Loans, we may be able to help. You may fully disclose your income or choose to self verify as you do not have complete financials or you are not able or do not wish to produce full financials.

When building a house you will need to plan carefully. Plan your finance alongside your cxonstruction.

There are differences between Construction Loans but generally you will require the following.

• Enough Funds to settle on your construction or
• Good current equity to secure your choice of construction loans or 5% deposit.
• Have a Fixed Price Building Contract.
• Are planning to build but have not started.

With this loan you can:

• Borrow from $50,000 up to $2.5 million, for a period of 15 to 30 years
• Obtain up to 80% Loan to Value Ratio without paying the Lenders’ Mortgage Insurance premium.
• Obtain up to 100% Loan to Value Ratio with Mortgage Insurance.
• Obtain a Low Doc Loan up to 80% Loan to Value Ratio (LVR).
• Choose from a variable interest rate or a fixed rate for 1, 3, or 5 years .
• Repay your loan monthly, fortnightly or weekly including by direct debit
• Loan Funds presented in 3 to 5 stage payments toward settlement.
• Clean Credit History (minor Credit Defaults only).
• With this loan you may require a Fixed Price Building Contract.

Do i need Accountants advice?
If there are taxation or other issues regarding a refinance or restructure- Yes. Instances where you may require advice from an accountant are instances where a loan impacts:

• Trust Accounts
• Company Accounts
• Investment Properties
• Entity Ownership of Properties
• Quantity Surveyors Reporting
• Negative or Positive Gearing Returns

If there are no Taxation or issues an Accountant could advise you on, then No.

The best way to describe a Line of Credit is that it is like a very big Cedit Card, with your house as security.

There is a credit limit that you can draw funds up to, or pay down to zero. Usually you are only required to make interest payments on the outstanding balance. When considering a Line of Credit Facility look at the following:

• Line of Credit Facilities can attract higher Interest Rates and Fees.
• Most people require a structured type loan, and the flexibility of a Line of Credit may not suit them.
• Does your whole facility need a Line of Credit? Can you achieve a cheaper option with a combination of loans?

Lines of Credit are very useful facilities, but can come with a high price tag. A combination of loans with a Line of Credit may provide a more rounded solution.

This type of loan is designed specifically for self-employed people, who have been trading for more than 12 months (ABN must be registered for more than 12 months) and wish to self-certify their net income (Low Doc). With this loan you can:

• Borrow from $50,000 up to $2.5 million, for a period of 10 to 30 years
• Obtain up to 80% Loan to Value Ratio with the lender paying the Lenders’ Mortgage Insurance premium.
• Choose from a variable interest rate or a fixed rate for 1, 3 or 5 years.
• Repay your loan monthly, fortnightly or weekly including by direct debit
• Step down to a lower variable rate from the 2nd anniversary of settlement provided you have no arrears on your loan and have not missed any repayments.

Choose a Line of Credit facility, including phone or internet, ATM and EFTPOS Access and monthly statements.

This type of loan is ideal for people who are wishing to use equity out of their homes to fund their business and are having difficulty obtaining high Loan to Value Ratio loans because of limited financials. With this loan you will need to provide your an income declaration form and other documentary evidence including an ABN.

The First Home Owners Grant was introduced in March 2001 to offset the impact of the introduction of G.S.T by the Federal Government. Elegible Applicants are entitled to a one off $7,000 payment. For detailed information on your States First Home Owners Grant click on the link below and go to your respective state on the bottom of the page.

http://www.firsthome.gov.au/

Loan Saver Network assists in completion of your first Home Owners Grant Application and submits with your application.

Business Loans, Tax Debt Loans and Loans for working capital are a niche mortgage product. Mainstream lenders generally do not like to lend money for tax debt, under individual circumstances a lender may provide business loans for working capital or other uses. Tax debt loans are not available through traditional avenues. If you are self-employed and have had an ABN registered for 1 day (Start up business), 12 months or 2 years or more. You may be looking to start out in business or you have an existing business. You have tax debt or other business debt you wish to cover. You may fully disclose your income or choose to self verify as you do not have complete financials or you are not able or do not wish to produce full financials.

This type of loan is ideal for people who:

• May need to borrow more money than the limits imposed by tradition lenders. Business Loans can tend to have restrictive LVR Ratio’s .
• Your lender doesn’t provide tax debt loans or business loans.
• The purpose of the borrowed funds is outside of the guidelines set by traditional lenders. For example Tax Debt or Working Capital.
• You do not have complete financials or you are not able or do not wish to produce full financials.
• Require up to 90% LVR.

With this loan you can:

• Borrow from $50,000 up to $2.5 million, for a period of 15 to 30 years
• Obtain up to 90% Loan to Value Ratio without paying the Lenders Mortgage Insurance premium.
• Chose from a variable interest rate or a fixed rate for 1, 3, or 5 years .
• Repay your loan monthly, fortnightly or weekly including by direct debit
• Chose a Line of Credit facility, including phone or internet, ATM and EFTPOS Access and monthly statements.
• Clean or Impaired Credit History

There are two circumstances in which you may wish to refinance you homeloan. Firstly, you may be dissatisfied with the terms of your existing home loan or the service provided by the lender. Secondly, you may be seeking an additional home or investment loan secured by another property, and it may be advantageous to combine it with your existing home loan to get the best overall deal.

You need to compare the costs of refinancing your home loan with the benefits you will obtain from the new home loan account.

The costs will include fees and charges to pay out your existing home loan and fees and charges to establish the new loan. Payout fees include Release Fees payable to the titles office, a bank administration fee for attending to the payout and discharge of mortgage, and may include penalties for early repayment.

Costs to set up a new loan may include the valuation fee, mortgage insurance premium if the Loan to Valuation Ratio (LVR) is greater than 80%, legal disbursements and stamp duty on the new mortgage.

These costs need to be compared with the savings that can be achieved over the life of your new loan. These savings are likely to be achieved by obtaining lower interest charges. The interest charges may be lower (over the life of the loan) because:-

• The new lender has a lower rate of interest;
• The new lender provides 100% benefit on its Mortgage Offset Account;
• The new lender allows you to make additional repayments at any time without penalty.

 

Cross Collaterising is where two or more securities are used to secure a loan (See Above).

Not all loans require Cross Colateralising, it can be a part of a well structured portfolio. There can be cost and other benefits to Cross Collaterising but there are also issues with Flexibility.

A Mortgage Broker gets paid directly from the bank.

Commissions are calculated as a percentage of the overall loan settled by a lender. There is also an ongoing commission which is calculated as a percentage of the outstading balance from the loan. The client doesn’t pay for the services of a Mortgage Broker. The Bank pays the Mortgage Broker a commission for bringing them business.

Banks pay an upfront commission and a sometimes a trailing commission. Loan Saver Network uses trailing commissions to assist us in maintaining you as a client and to support you in your loan structuring requirements.

Loan Saver Network completes a Needs Analysis to identify the loans and structure to best suit your requirements. We abide by Transparency in Lending so you are confident with the products you choose.