It can be very difficult to know which is the right home loan for you, with so many loans on the market, Jupiter Finance will find the right solution and guide you through each step in order to make the process as easy and stress free as possible.
A basic home loan is the most common loan. It has a low interest rate and provides an array of repayment options, but is very limited in regards to the feature it provides.
Standard variable rate loans provide a greater range of loan features. It allows you to fix all or part of the loan, gives you extra repayment options and offset arrangements. Standard variable rate loans also provide you with greater flexibility as opposed to a basic home loan.
With the constant changes in the economic cycle, fixed rate home loans provide you with greater security as it protects you from an increase in interest rates. It should be noted that there are restrictions placed on fixed rate loans in terms of extra repayments and flexibility.
Equity loans and lines of credit provide you with the opportunity to take advantage of the equity in your property to complete renovations and cover large household expenses. The interest on the loan is normally on a variable rate and can be interest only.
Mortgage offset is much like an all in one loan which allows the borrower the opportunity to place their salary and available credit funds into an offset account. The balance off the funds are offset against the loan and thus reduces the home loan interest and repays the loan quicker.
A low-doc loan suits clients that are investors or self-employed, and have the ability to afford the loan repayment, however are unable to meet the standard lending criteria required. This applies in particular to clients which are self-employed and have irregular income.
Whilst choosing the right loan for you, there are a number of options which need to be considered. What your financial circumstances are, your preferences and your goals are should also be taken into account to find the most suitable product for your short and long term requirements.
An offset account is a savings account, which is linked to a home loan. No interest is paid to the offset account, instead the balance of your offset account is deducted from your loan account before the interest on your home loan is calculated. This means that less interest is charged to your loan. An example of this can be shown by a borrower which has a $450,000 mortgage and $30,000 in an offset account will only be charge interest on the $420,000 rather than the full loan amount. Not all products offer 100% offset.
Additional repayments are any extra payments which are above the standard repayment on your loan.
There are two types of additional repayments. One is increasing your normal fortnightly or monthly repayment. For example, the minimum payment may be $1249, but if you increase this to $1300 then the extra $51 is considered an additional repayment. When that extra $51 per fortnight has reached a minimum redraw amount (normally $500) you can redraw this.
The other type of additional repayment is any lump sum payment that you chose to make. You may decide to keep your fortnightly repayment at the minimum amount, but if you have a spare $200 one month – you may chose to pay it on to the loan. These extra repayments can also be redrawn when they meet the lenders minimum redraw amount.
It should be noted that most lenders have limitations on the amount of additional repayments that you can make while on a fixed rate and some will not allow you to redraw. If you think that making additional repayments is a feature you would be interested in, speak to Greg about finding the most suitable option for you.
This allows borrowers to access those additional repayments which have been made. This money can be used for things such as holidays or cars. Various lenders have a minimum redraw amount and may charge a fee also.
This allows your salary to be paid directly into your home loan account.
This gives you the option to take an existing loan to a different property when you move. This can potentially save you on mortgage stamp duty.
This feature offers a holiday from repayments or a period of reduced repayments. This can be very useful during career changes or breaks, in particular maternity leave.
This allows the borrower to switch from a variable rate loan to a fixed rate loan.
This allows the borrower to increase the limit on a home loan, using the equity in your property for other needs such as renovations
There are a number of steps required in order to obtain a home or investment loan. This process is generally how most loans will be approached and time frames depend on each client scenario and requirements. By taking you through each step, Jupiter Finance will make the process as easy as possible.
Step 1: First initial interview with Jupiter Finance. This will be in order to better understand your requirements and what specific features you're looking for in your loan. We can then identify your borrowing capacity and a choice of lender options who will meet your requirements. You will be provided with a detailed list of information which is required to process your application.
Step 2: Once you have collated all the required information and thought about our lender recommendations, we will submit an application to your chosen lender. At Jupiter Finance, we will complete all relevant paperwork and submit to the lender on your behalf.
Step 3: The lender will assess the application and the documents supporting the application. The lender will then provide a conditional loan approval. Jupiter Finance will notify you of the lenders decision regarding your application. They may require supporting documents.
Step 4: Some lenders will require a valuation of your property depending upon whether you are buying, refinancing or the size of your loan. There are a lot of factors that affect whether a valuation is required or not. If a valuation is required, you will be contacted by a valuer for an appointment which is mutually convenient for both of you to attend.
Step 5: The valuation is then returned to the lender. Once the lender is satisfied that the conditions of approval are met, the lender will issue a formal loan offer. We will advise you as soon as your loan has been formally approved.
Step 6: The Lender will then prepare the loan documents. These will be forwarded to you or to Jupiter Finance. We recommend you obtain independent legal advice on all legal documents.
Step 7: Jupiter Finance will arrange a meeting with you in order to review all the loan documentation.
Step 8: Jupiter Finance will then return all the loan documentation to the lender. If you are purchasing a property, there will be a settlement date within your contract of sale. It is important to provide your Solicitor or Conveyancer with the details of your lender so that they can liase to ensure settlement dates and conditions are met.
For those customers who are refinancing, or taking an equity loan, there is no settlement date so this will be arranged by the lender.
Step 9: Once your loan has settled, Jupiter Finance will contact you within 24 hours in order to complete a post settlement review. This is done to ensure the process has met your expectations and the outcome you had hoped for has been met.
Refinancing is a simple process, and there are potentially many benefits which can include :
Jupiter Finance will compare all the home loans which are available across the market. We will ensure that the expectations of our clients are met and we will find the most suitable finance option to suit you.
Your full financial needs and requirements will be considered prior to any offer and acceptance of a loan product and is subject to Banks Terms and Conditions.