Consortium Finance will discuss the different Loan Features with you and find out 'what works for you' according to your needs.
Offset Accounts, when linked to your loan account, can ultimately save thousands on your mortgage repayments.
For example: If you have a variable loan of $100,000 and you have $10,000 in a 'Linked 100% Offset Account' you would only be charged interest on $90,000 of your principal loan amount.
Introductory Loans (honeymoon loans) provide a lower fixed interest rate term, usually in the first 6 -12 months. They then revert to a higher variable rate for the remainder of the loan term. These loans can be fixed or variable and generally have higher upfront fees.
Redraw facilities allow you to access any additional repayments that you have made into your loan account. Some lenders have minimum amounts for a redraw and almost always charge a fee.
Interest Only repayments equates to you only making repayments on the actual interest on the loan amount with this facility. The principal amount or the initial debt remains equal. This facility is most commonly used for financing investment properties. It can be set up with fixed or variable interest rates. Interest only loans usually have a slightly higher rate of interest and one of the biggest advantages of this product is that you always have money available, which makes this type of loan very attractive to investors. However unless care and discipline is shown, the loan amount may never reduce.
Split Loans allow you to nominate what portion of your loan will be fixed and what will be variable. The variable portion allows you to make additional repayments while the fixed component provides protection if there is a rate rise during that period.
Low/No Doc Loans are generally used for Self-Employed people or investors. No tax returns or financial reports are required. Rates for these loans are usually about 1% above the Standard Variable Rates.
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