If you are self employed with assets and a regular income and you are wishing to borrow money to:

• Start up or invest in a new business
• Reduce borrowings
• Acquire equipment
• Employ additional staff
• Fund other expansion initiatives
• Working Capital
• Pay Tax Debts

You may choose to apply for either a Low Doc Loan or a Fully Verified Loan.

Self Certification (Low Doc) Loans

• If you choose to self-certify by applying for a Low Document Loan, you need to provide:
• A signed declaration that states your annual net income and confirms your ability to service the loan
  6 months mortgage and rental statements.
  If you choose a Fully Verified Loan you need to provide:
• Between one month and 6 months personal and business bank statements (depending on your application)
  Your Australian Business Number (ABN) registration documentation.
  

Fully Verified Loans

If you do have your financial records up to date, you also have the option to apply for a fully-verified loan in which you would need to provide tax returns.

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.

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

 

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.

In most cases you do require at least a 3%-5% deposit. There are loans where you can obtain 100% finance. In these cases you will still need to cover the costs to obtain the finance which are:

• Lenders Mortgage Insurance
• Government Stamp Duty
• Mortgage Stamp Duty (if applicable)
• Application Fees
• Valuation Fees
• Conveyancing and/or Legal Costs

There are other loans where you can obtain 106% finance and cover all costs incurred toward obtaining finance.

LVR Ratio is a numerical formula a lender uses to help identify a loans risk value. LVR Ratio is the ratio of Valuation vs the Loan amount.

Eg. Property value of $250k and Loan amount of $200k.

200/250 X 100 = 80%

LVR = 80%

Higher LVR ratio’s are more of a risk for a lender. Limitations are often put on products and can attract higher interest rates and fees. Choosing the right lender can provide competitive rates and fees across all LVR ratio’s.

The best way to describe Line of Credit Loans is that they are like very Big Credit Cards that use your house as security.

Line of Credit Loans (LOC) can provide quick and easy access to funds using the equity in your home or residential investment property. They have a pre-approved credit limit very much like a credit card. You may use as much or little of the funds up to the credit limit. Line of Credit Loans (LOC) 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.

When considering LOC Loans consider the following:

• LOC Loans can attract higher Interest Rates and Fees.
• Most people require a structured type loan. The flexibility of a LOC may not be suitable.
• Would an LOC be effective as part of a complete Loan Package? Can the same result be achieved with a cheaper option?
• Line of Credit Loans are available for Fully Verified Incomes and Low Doc Loans.
  Borrow from $50,000.
• Have a Split Loan account with a minimum of $20,000
• Make purchases in over 200 countries and cash withdrawals with National and International ATMs.
• Reduce your daily balance and hence the interest paid by having all your salary credited to this account.
• Make automatic payments and direct debts such as health fund and insurance premiums.
• Have the option of Interest Only payments for 5 years from the date of settlement.
• Capitalise your interest payments with suitable lenders.
• Drawn funds for personal or investment purposes.

You may be looking for a cheaper option, dissatisfied with your current lender, or seeking an additional loan and see that combining your loans may provide you a better deal.

This type of loan is ideal for people who:

• Are dissatisfied with their current lender.
• Looking for a more competitive facility and save money.
• Wishing to set up their current facility for future business, investment, or other personal purposes

With a refinancing loan you can:

• Borrow from $50,000 up to $2.5 million, for a period of 15 to 30 years.
• Obtain up to 95% Loan to Value Ratio (LVR).
• Choose from a variable interest rate or a fixed rate for 1, 3, or 5 years.
• Loans can be Interest Only or Principal and Interest.
• Repay your loan monthly, fortnightly or weekly including by direct debit
• Choose a 100% Offset Account, including phone or internet, ATM and EFTPOS Access and monthly statements.
• Choose a Line of Credit Facility, including phone or internet, ATM and EFTPOS Access and monthly statements.
• Self Verify or Fully Verifiy your Income.
• Clean or Impaired Credit History. *Conditions Apply