Home_Loan_Comparison_co_v2

  e | dennis@hlcco.com.au   p | 0419 856 669

  e | dennis@hlcco.com.au   p | 0419 856 669

Need a home loan? Relax, we've got you covered.

We research home loans from a variety of banks so we can guide and support you to apply for the home loan that suits your needs. Ready to apply for a loan?

We'll meet at a time and place to suit you.

BOOK A CHAT NOW

Need a home loan? Relax, we've got you covered.

We research home loans from a variety of banks so we can guide and support you to apply for the home loan that suits your needs. Ready to apply for a loan?

We'll meet at a time and place to suit you.

BOOK A CHAT NOW

 

You make plans. We make it happen.

Getting a home loan should not have to be hard. With the right planning and the right information to hand, the Home Loan Comparison Co will not only help you find the loan that suits your needs, but we will be with you right through the process until settlement and way beyond.

You don't need a home loan every day. Over the years we've got to know that there are as many different reasons for needing home loan finance as there are loans.

You could be forgiven for being overwhelmed at the number of names different lenders use for their products. Below you will find the standard loans you will see at every bank. Despite minor variations, they are the same with a different name. Knowing the small variants between how each lender tweaks their offering is a major benefit of having the Home Loan Comparison Co help choose you the right home loan product.

The Basic Products

Most home loan products you will find at a bank are some sort of variation of the loans you see below. Banks package them up to suit your needs and to attract their niche market. In finding the right home loan, a good place to start is to understand what these 'basic' products mean , what they offer. Then start focusing on which lender offers the variation of this home loan that will suit you.

Understanding the niche market and policy of so many banks allows the Home Loan Comparison Co. to consider 100's of products that could be your perfect home loan match.

Variable Rate Home Loans

The most popular type of home loan, the Variable Rate Loan. As the name suggests a Variable Rate Home Loan comes with an interest rate that can fluctuate over the term of the loan meaning home buyers benefit when interest rates are heading down. Find out more about Variable Rate Home Loans here.

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Fixed Rate Home Loans

A Fixed Rate Home Loan means that interest rates are locked for a certain period of time. At times this type of loan can be misunderstood for the fear of being 'locked in' however, this is not the case. Fixed Interest Loans are a beneficial option to have in your loan portfolio. Find out why.

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Home Loan Packages

A common offering from lenders now days is a Package Home Loan. One of the benefits of increased competition between banks is the expanded offering of products to a greater audience. The Package Home Loan is a perfect example of that. Offering benefits such as interest rate and fee discounts, find out if this product could meet your needs.

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Variants of the Standard Home Loans

These products are different styles of the Variable Rate Home Loan. Choosing not just the right product here, but the right lender also, will ensure that the home loan you end up with really serves your particular needs.

100% Offset Home Loans

Put simply, an offset account means that the your are not charged interest on your home loan equal to the sum of funds held in your savings account. If you have $10,000 in savings and your home loan is $100,000 then you are charged interest on only $90,000 for you home loan. A handy little interest saver over time. Want to know more about how this can work for you?

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Basic Home Loans

Previously called a 'no frills' Home Loan, and that is just what they are. Restricted in options compared to other home loans but still an extremely useful asset in the home loan tool set depending on what your needs are. You can expect to see features such as low interest rates and no fees on this type of loan.

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Introductory Rate Home Loans

An excellent way to take advantage of a low interest rate for a short period of time. Perhaps you have extra funds to spare or conversely, you may need to minimize loan repayments. It depends on your families needs at the time. The Home Loan Comparison Co fosters long term relationships so when this type of loan expires, we can make sure you don't get stung by a standard rate at the end. 

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Home Loan Comparison Co.

We're simply about Home Loans

The cheapest home loan interest rate in Australia is not necessarily the best. It may have a large monthly or annual fee or very limited options like extra repayments or ability to pay lump sums. Everyone has different needs and wants from their Home Loan and this is where the Home Loan Comparison Co can help.

We can assist you with any questions you have regarding purchasing, such as;

Our Home Loan Calculators are a great place to start

 

Types of Home Loans

There are essentially 2 different types of Home Loans, Fixed and Variable. Within these two types, there are many variants and options that the loans can offer. The following is an overview of Home Loans and their options.

 

Variable Rate Home Loan

As the name suggests, a Variable Rate Home loan has an interest rate that is variable. The interest rate can increase and reduce depending on various factors and market conditions.

The obvious advantage of a Variable Home Loan is if the official interest rate is reduced, your Home Loan interest rate should also fall. Conversely, if official interest rates increase, your rate would most likely increase, meaning your monthly required repayment would also increase.

Although the Reserve Bank of Australia (RBA) sets the official “Cash Rate”, not all lenders will change their rates in line with any changes by the RBA.

Other advantages of a Variable Rate Home Loan are you can generally make additional repayments to the loan and you can also usually “redraw” any additional repayments that you make if you need access to those funds.

The variable interest rate will be different depending on the lender, options on the home loan, loan size and “Loan to value” (LVR) ratio. Home Loan Comparison Co can assist with obtaining the most competitive rate possible from each lender.

 

Fixed Rate Home Loans

A Fixed Rate Home Loan means your interest rate is Fixed for a set period of your choosing. This will be between 1 to 5 years, although some lenders offer 7 and 10-year Fixed Rates as well. The most obvious advantage of a Fixed Rate Home Loan is your interest rate is set for a period. This allows you to know exactly what your repayment will be for the period the interest rate is set.

If official interest rates increase, your interest rate and required repayment would not alter during the term of the Fixed Rate as your loan has a Fixed Rate. A disadvantage would be if interest rates fall. As your interest rate is fixed, your rate will not change until the end of the Fixed Rate period.

Other possible disadvantages are that you may be restricted on making any additional repayments to the loan. Most lenders allow a small amount of additional repayments but are very restrictive.

Fixed interest rates will be different depending on the lender, options on the loan, loan size and “Loan to value” (LVR) ratio. Home Loan Comparison Co. can assist with obtaining the most competitive rate possible from each lender.

You may also like to read our blog on the pros and cons of fixed rates here.

 

“Package” Home Loans

A lot of lenders will offer “Package” Home Loans. Previously these were restricted to those in certain professions (Doctors, Lawyers, Accountants etc), however they are now generally available to everyone. A Package Home Loan will allow you receive an interest rate discount, along with discounted fees on other products offered by the lender. You can bundle certain banking products, generally a transaction account and a credit card into the “package” and save on fees on the other products. A 'Package Home Loan' will normally have either a monthly or annual fee. Your Home Loan Comparison Co adviser can assist to ensure the fee is cost effective and not going to cost more than it is worth. Package Home Loans will also usually allow you to set up an “Offset” account to the loan with no additional on-going monthly or annual cost.

 

100% Offset

An Offset account is a separate transaction account attached to your home loan as a means of saving you interest on the home loan. The funds kept in the offset account are your own funds. Whatever funds are held in the account are then “Offset” against the Home Loan. For example, if you had a Home Loan of $400,000-, and you had $10,000- of your own funds in the Offset account, this would mean of your home loan, only $390,000- would be charged interest, as the other $10,000- is offset by the funds in the Offset transaction account.

Most offset accounts are fully transactional, with ATM, Internet and branch banking access. You can also have your pay put into the Offset Account and have any debits you want come out of the Offset account.

You may also like to read our blog here.

 

Basic Home Loans

A Basic Home Loan is what would have previously been called a “No Frills Home Loan”. No Frills, because previously all you were allowed to do was make a repayment, once a month or a fortnight and that was it. Nowadays, they come with a few more options. Most notably, most will allow additional repayments and redraw, although some will charge a redraw fee. You will not be able to have an Offset Account. A Basic Home Loan would not be able to form part of any package loan. A Basic Home Loan will generally have a very competitive interest rate and usually have little or no on-going fees.

 

 

Introductory Rate Loans

An Introductory Rate Home Loan will have a discount on the interest rate for a short period of time, at the beginning of the loan. The period is usually 1, 2 or 3 years. Of late, some have extended the Introductory discount out to 4 years. These loans allow you to pay off your loan faster because of the low introductory discount, but you need to be careful. Most of these loans will revert to the standard variable rate at the end of the introductory period, which can be a lot higher than could be available. To then switch out of the standard variable rate to obtain an improved rate may then cost you a large amount. The Home Loan Comparison Co. can advise you on which of these loans are good and which are not. Our Home Loan Calculators can also give you an initial idea.

 

Redraw Facilities

Redraw is the term used when you have paid more onto your Home Loan than you are required to and you need access to those funds. For example, if your monthly required repayment was $2,000- and you repaid $2,500-, you have additional funds (known as surplus) in your home loan. On this example, over 12-months you would have a surplus of $6,000-. If you needed to obtain access to the surplus funds you would do a “redraw” and transfer the funds from your Home Loan to your transaction account, where you would have access to those funds to use for whatever purpose you need.

The fact that you have deposited additional funds to the Home Loan would help you pay off the loan quicker as you have reduced the balance of your loan for a period of time. It is best not to do redraw if you can, but sometimes you just can’t help it. Some people will deposit extra funds into the account knowing later in the year they will need those funds for an expense, say for annual council rates.

You may also like to read our blog here.

Low Doc Loans

Low Documentation Loans are designed for self-employed borrowers who don’t meet the traditional means of certifying their income. They may not have up to date financials prepared yet, be new to their current role therefore don’t have financials covering a long enough period or be in a major growth period of their business. So long as the lender can be satisfied you can still meet your repayment guidelines without having undue hardship meeting existing obligations, then a lender may still be prepared to lend you money under a “Low Doc” loan arrangement.

A Low Doc loan will generally have a higher interest rate and require greater equity in the property being used as security, however it can still be a good way to obtain finance.

You may also like to read our blog here.

Line of Credit Loans

A Line of Credit is like a big overdraft or big credit card, where you have a defined limit provided to you and you use the funds if and when you need to. These types of loans were very popular 15 years ago but have fallen out of favour since Offset Accounts have become available.

They can be useful if you are a share trader or do other short-term investments, as you have immediate access to your funds can deposit and withdraw whenever you like.

A Line of Credit will usually have a higher interest rate than a Home Loan and higher on-going fees. A Line of Credit also have no set monthly repayments. The problem with this is, because you do not need to pay down your loan and any repayments you do make can be redraw straight away, your balance may be the same in 10 or 20 years’ time as it is now. This makes a Line of Credit the type of loan that can potentially leave you in financial trouble if you are not good at controlling your finances. You may have guessed, we are not a huge fan of this type of loan.

Guarantee Home Loans

A Guarantee Home Loan is a facility where you obtain assistance from a family member to allow you to purchase a property. Family Guarantees are allowed for either Owner Occupied Borrowing or Investment lending. The person/s who provide a guarantee will need to have good equity in their own property, which they then use to partly secure the purchase by the borrower. By providing a Guarantee, there is a reduced need for you to have a deposit and possible reduced bank fees if you have less than a 20% deposit as you will avoid Lenders Mortgage Insurance.

What a guarantor must remember though is they are using their property to secure someone else’s loan. If that someone else does not meet their loan repayment commitments, the guarantor is ultimately responsible for the loan and the bank has a mortgage over their property which they may use to enforce repayment of the guaranteed portion of the loan. A Guarantor should always seek their own independent legal and financial advice before entering into any contract.

You may also like to read our blog here.

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