Fixed vs Variable rate

One of the first decisions to make on your home loan is whether your interest rate will be variable or fixed for a certain time.

A variable interest rate will move along with the market and is sensitive to Reserve Bank decisions about the national cash rate.

Fixing your rate will mean that it cannot change even if variable rates in the markets begin to increase, but the flip side is that you can get stuck with a higher rate while others decrease.

Term of your loan

A shorter term for your loan will require higher repayments but save you more interest in the long term. Most borrowers elect to have terms higher than 15 or 20 years, to give them some room to breathe throughout the repayment years.

Early repayments

Throughout the life of your loan, you may be fortunate enough to receive an excess of savings, whether from salary boosts or less spending. Most people use this opportunity to repay big lumps off their mortgage but forget that they will need to enable this home loan feature to retire their loan before its time.

Repayment frequency

Depending on your lifestyle and income, you can choose to repay your home loan in weekly, fortnightly or monthly installments. Choosing more frequent repayments will actually save you a few dollars each time, but it is far better to have a schedule that suites your needs, rather than risk missing a payment.

Line of credit

This type of loan allows you to use the equity of your home for other purposes. You can think of it as being able to borrow from your home loan to spend or invest. However, you will need to avoid the temptation of using the feature too often, lest you extend your home loan even further

Buying the right investment property can be quite daunting, that’s why Banctec Mortgages will first assess your Borrowing Capacity and apply for a Loan Pre-Approval, so you know exactly where you stand in the market place.

We can also, assist you with your investment property purchasing decisions by providing Property Research Reports, conduct a Property Investment Analysis (PIA) aiding with your choice of the preferred most tax affective property and recommend you to reputable Real Estate Agents.

When considering an investment property your first port of call should be our team.  

We can help you achieve your investment property goals by review your assets and liabilities to determine how much you can borrow, which will, in turn, give you a general idea of your target price range, so you can narrow your property search within your purchase budget. 

Good finance planning should also include a ‘finance buffer’ to cover any property maintenance costs and unexpected property related problems.

Ideally, your buffer would sit in an offset account against your mortgage, so that you have immediate access to the money while at the same time reducing the principal, and therefore the total interest payable on, your loan.

Reassessing your mortgage and other loans is key if you are a homeowner or investor aiming to minimise repayments and build property portfolios.

Refinancing can save you significant amounts in interest, fees and repayments as well as giving you access to extra loan features, equity and greater flexibility. The benefits of loan restructuring can provide you with the financial freedom to take on new investments and opportunities.

We take the time to assess if and how refinancing can specifically help you.

Our goal is to help create long-term property investment success for our clients and we specialise in restructuring loans to increase your wealth.

Whether it’s your first or your fifth home loan, a Banctec Mortgages refinancing specialist can give you the advice, tools and property strategies to start saving more and investing in your future.

What we can do for you

• We’ll analyse your current loans and make sure you have access to discounted rates and conditions available right now.
• We’ll unpack your entire lending strategy to-date and suggest ways to save interest, fees and tax.
• We’ll dissect your current loan structure and discuss ways to free up cash to grow your portfolio faster. And we’ll explore how different lending options may help you achieve your financial goals sooner.
• Evaluate your financial health and determine if refinancing is ideal for you right now.
• Research and present loans with the most suitable conditions for your situation. Or assess if we can negotiate a better deal with your current home loan provider.
• Present lending options on how to structure your loans for long-term savings and investment success.
• Access to exclusive interest rates, conditions and services that are only available to premium mortgage partners.
• All the paperwork, organising and submitting of documentation on your behalf, and managing your complete application from start to finish.
• Work with your solicitor to ensure a smooth settlement process
• Communicate every step and course of action clearly with you.

You're starting your journey to home ownership- Congratulations!

Banctec Mortgages are here to help get you started!...

Buying your first home is one of the most exciting steps you’ll take in your life. Of course, first home buyers also face challenges, especially in today’s market. That’s where we come in!

If you’re wondering where and how to get started buying your first home, we’re here to help you with the process. 

With the right approach, you’ll build your confidence as you look for a home to call your own.

Clarifying your goals is one of the most important things you can do as a first time home buyer. Perhaps you’re over renting and want the stability that comes with owning your own property. Maybe you’ve married the love of your life and want a space of your own, or more room for the kids. You might want to invest, and are looking longer-term to cater for retirement.

First home buyer loans

A variety of loan products and structures available to get you over those hurdles into the property market. Be a proud owner of your first home.

• Genuine Savings
• Non-Genuine Savings
• Family Pledge Guarantee 

- Reduce or avoid Lender's Mortgage Insurance, saving you money when you need it most

- Maximise the amount you can borrow - up to 100% of the purchase price, plus costs such as Stamp Duty and Legal Fees.

How much can I borrow?

We will asses how much you can afford to spend on your new home in an important step when you’re searching for property – after all, knowing your budget means you can focus on the properties that you can afford and not waste time on those that are out of reach.

The extra costs when buying a property

When you buy a new home there are more costs than just the price of the property. Some of the costs you might come across include stamp duty, pest and building inspections, legal fees, borrowing costs, insurance plus post-purchase costs such as moving fees, council rates or strata fees. On top of this there are also any potential renovations or furniture purchases you might need.

The first home owners grant

If you're struggling to get together the money to get a foot in the door of your first home, there are a number of first home owner grants available across the country. Check out what’s on offer in your state and to see if you’re eligible.

First Home Loan Deposit Scheme (FHLDS)

From 1 January 2020 the FHLDS will be introduced and we are excited to assist you with the First Home Loan Deposit Scheme (FHLDS) to help more first home buyers purchase their own home.

We understand that saving a deposit for a home can be challenging and we support initiatives like the FHLDS that may help customers enter the property market sooner. 

Eligible borrowers can use the Scheme in conjunction with other government programs like the First Home Super Saver Scheme, state and territory First Home Owner Grants and stamp duty concessions.

Contact Banctec Mortgages now to make your home ownership dream come true...

We focus on providing exceptional finance solutions to the under-servicesed self-employed business owner.

We have support and solutions available for almost every situation, including:

• Short term ABN Registration (3 months minimum)
• 1 day GST registration available
• Accountants declaration as evidence of income
• Complex borrowing structures
• Funding up to 90% LVR
• Defaults and arrears considered
• Equity release available for business purposes
• Debt consolidation
• Pay-out of ATO Debt

If you are a business owner seeking a residential home loan, contact our team of experts to evaluate your options and for exceptional guidance and support.

A construction home loan is a type of home loan designed for people who are building a home as opposed to buying an established property. It has a different loan structure to home loans designed for people buying an existing home.

A construction loan most commonly has a progressive drawn-down. That is, you draw down the loan (or increase your borrowing) as needed to pay for the construction progress payments.

The amount available to borrow will be partly based on the value of the property upon completion of the construction.

A construction loan will usually be interest only over the first 12 months and then revert to a standard principal and interest loan.

Construction Loans

Getting approved for a construction loan is a different process to applying for a standard home loan on an existing home.

The first thing you’ll need to do to ensure a smooth application process is to present the lender with professional plans for your property. A property appraiser will then go over these plans to determine the expected value of the property when completed.

This is because when you apply for a construction loan, the lender considers the expected value of the property upon completion of construction as well as the total amount required to borrow in order to pay the builder.

Once this has been done, the lender will then ask you to approve a loan offer for the property. You will then have to make a deposit, as you would with most other types of home loans. This acts as a security at this stage of construction, and a larger deposit will convince your lender of your trustworthiness.

For each stage of the construction process listed earlier, you’ll have to confirm that the work has been done, complete and sign a draw down request form, and send it to the construction department of your lender.

Construction loans are mostly suited for:

• House and Land Packages (owner occupier or investment)

• Off plan purchases

• Owner builders

• Property extension and renovation

How do progress payments work?

Once a construction loan has been approved and the construction of the property is underway, lenders will make progress payments throughout the stages of construction.

Generally, the payments will be made at upon completion of five stages:

(1) Slab down or base: This is an amount to help you lay the foundation of your property. It covers the levelling of the ground, as well as the plumbing and waterproofing of your foundation.

(2) Frame stage: This is an amount to help you build the frame of your property. It covers partial brickwork, the roofing, trusses, and windows.

(3) Lockup: This is an amount to help you put up the external walls and put in windows and doors (hence the term ‘lockup’, to make sure your house is lockable).

(4) Fit out or fixing: This is an amount to help you do the internal fittings and fixtures of your property. It covers plasterboards, the part-installation of cupboards and benches, plumbing, electricity, and gutters.

(5) Completion: This is an amount for the conclusion of contracted items (e.g. builders, equipment), as well as any finishing touches such as plumbing, electricity, and overall cleaning.

As the loan is being progressively drawn down, interest and repayments are calculated based only on the funds used so far. For example, if by the third progressive payment, only $150,000 has been drawn down on a $300,000 loan, interest would only be charged on $150,000.

It is also important to note that most banks require you to use all your equity before they release the next payment.

Banctec Mortgages will work with you through the entire process, providing one single point of contact from the loan application right up until the completion of your home including assisting with construction progress payments.

Bridging loans are designed to help people complete the purchase of a property before selling their existing home by offering them short-term access to money.

This is typically an interest only payment home loan with a limited loan term. The extent of the bridging loan is calculated on the equity in your current property. It is an additional home loan that you take out on top of your current home loan until the property is sold and the loan can be closed.

Why take a bridging loan

By taking out a bridging loan, you can avoid the stress of trying to match up settlement dates, which gives you a better chance of selling your existing home at a reasonable price without time pressure.

In a perfect world, it would be possible to sell your existing home and buy a new home on the same day – but as it is, we currently have a cooling-off period during which the buyer has to arrange finance to buy their new home before settlement day.

The reality is that there’s a certain amount of uncertainty in the housing market and bridging finance allows people to buy a new home while they are waiting for their current home to be sold.

Borrowers can usually also add the upfront costs of buying a home to a bridging loan, such as stamp duty, legal fees, and inspection fees.

However, please note that bridging finance may not be available or suitable for every borrower. Lenders often require that you have a certain amount of equity in your existing home so you can provide a substantial deposit on your new home to have a lower LVR. Or lenders may require that borrowers without equity in their existing home pay a higher interest rate on their new home’s bridging loan.

How does a bridging loan work?

When you take out a bridging loan, the lender usually finances the purchase of the new property, as well as taking over the mortgage on your existing property.

The total amount of finance borrowed is known as the ‘Peak Debt’ and is generally calculated by adding the value of your new home to the outstanding mortgage from your existing home. By then subtracting the likely sale price of your existing home, you’ll be left with the ‘Ongoing Balance’ and this will be the overall balance of the new loan.

During the bridging period, interest will be compounded monthly on your ongoing balance at the standard variable rate.

Some lenders do not charge higher interest rates on bridging loans than on other types of home loans, but it’s vital that you compare your options:

• Convenient: Bridging loans ensure you can buy your property straight away because you don’t have to wait for your current home to sell
• Repayments: During the bridging period, you only make repayments on your current mortgage.
• Avoid renting: You can avoid the costs and hassle of having to rent a home in the period between the sale of your existing home and settlement of your new home.

Get cash from your existing home with an equity release loan.

You can often use some of your equity to make a purchase such as an investment property, dream holiday, new car or consolidate debts, even as a cash release.

Loans for equity release provide a method for accessing the cash equity that has built up in your property over time (‘equity’ meaning the value of your property that is not subject to a mortgage). Homeowners can use this equity in their home, to release cash that can be used for any worthwhile or valuable purpose. Common reasons for releasing cash equity include:

• Raising funds for business purposes
• Raising equity for property developers
• Paying ATO Debts
• Future Investments, such as shares purchase
• Renovating

Banctec mortgages are the perfect service providers to help you sort through the veritable minefield of requirements, rules and red tape – securely opening up new investment opportunities for you.

Unfortunately at times, managing our finance can be overlooked causing us to make a late mortgage or loan repayment and sometimes even default in repayments resulting with credit agencies entering listings which tarnish your credit score and/or credit report.

This can cause difficulty in buying a property, refinancing your home loan and/or consolidate debts because the banks refuse to help you.

Many credit consumers are not familiar with the credit market and are not sure which lenders to approach. 

Non-Conforming Loans  are suitable for credit consumers with Poor Credit Ratings, Loan Repayment Arrears and 1 day ABN registration including a variety of other circumstances that traditional lending will not allow as part of there policies.

Alternative lending 

Is a broad term used to describe the wide range of loan options available to consumers and business owners outside of a traditional bank loan. These alternative options are most commonly used when an individual or business owner cannot obtain a traditional bank loan for any number of reasons.

Alternative lenders are more flexible than banks when it comes to loan approval and repayment schedule and offers cash much quicker than traditional banks can

The greatest advantage of alternative lending solutions is being able to tailor the loan to your needs. 

It offers great flexibility and provides far more options to suit needs than traditional bank loans.