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What You need to Know
Refinancing
Refinancing involves reviewing your current mortgage and possibly transferring your loan to another lender who can better meet your current needs, preferences, and circumstances. It can be a strategy to secure a lower interest rate, switch to a different type of loan, consolidate your debts, or pay down your mortgage more quickly. Contact us today to secure a better future.
First Home Buyer
Buying your first home is a significant life event. While exciting, it can be daunting if you’re not sure where to start. Garden Finance Solutions is here to lead you onto the right path and move through each step with confidence.
Investment Property
Whether you are investing or refinancing an investment property. At Garden Finance Solutions, we can help you find the best loan options for your financial situation, personal goals, and investment strategy.
Owner Occupier
Living in our dream home is one of the best things in our life. And the best moment is when you own it! We provide finance solutions to make your dreams come true.
Bridging Loans
Also known as a relocation loan, this loan is recommended when you are selling your home and buying a new property at the same time. With a bridging loan, you can avoid the stress of matching up settlement dates, move quickly to buy your new home, and give yourself more time to sell your existing property.
Construction Loans
If you're considering building your own home, it's important to be knowledgeable about construction loans. Unlike standard home loans, construction loans can be more complex. You'll need to make additional decisions about the loan structure, provide extra documentation, and the funding process works differently.
Self Managed Superfund (SMSF)
An SMSF home loan is for borrowers with a self-managed super fund (SMSF) who want to use the funds to purchase an investment property. The returns are funnelled back to your super fund account, increasing your retirement savings.
Offset Account
Offset accounts are similar to savings accounts that work in tandem with your home loan. You can earn interest on the funds held within the offset account and often have a debit card for easy withdrawals. With 100% offset accounts, you can earn interest that matches the interest you are paying on your loan. Instead of earning rates associated with traditional savings accounts, you can earn interest rates associated with your home loan account on the funds in your offset account.
Redraw
Redraw facilities allow you to deposit spare income into your home loan account, allowing you to redraw a sum equal to the extra repayment amounts in the future. In the meantime, the extra money paid will lower the amount of interest charged, while still giving you access to your money.
Loan to Value Ratio
Also known as LVR, this is a critical factor when determining how much you can borrow to buy a property, the amount of deposit you need to save, and whether you meet the requirements for a specific mortgage product. In essence, the LVR represents the percentage of the property's value, as determined by the lender, that your loan equates to.
Variable Rates
The interest rate on a variable rate loan can change throughout the term of the loan in reaction to market fluctuations in interest rates. The interest rate on a variable-rate loan can go up or down. A variable rate loan may come with features such as an offset account, which can reduce the amount of interest you pay, a redraw facility, and the ability to make additional repayments either regularly or in a lump sum.
Fixed Rates
A fixed-rate loan keeps the same interest rate for a certain period, even if interest rates in the market change. Choosing a fixed-rate home loan can provide stability for people who want to manage their budget and hold a fixed-rate position for a medium-to-long-term period. It can also protect borrowers from potential rate changes that may cause volatility.
Line of Credit
A line of credit is a versatile loan offered by banks and financial institutions. It can be a valuable resource in case of emergencies, especially if the amount of money you need exceeds what's currently in your bank account.
Low Document
Also known as the Lo-doc. If you don't have the traditional payslips and employment records, rather than the usual documentation you prove your ability to service a loan using bank statements, declarations from your accountant, and financial records to borrow.
Lenders Mortgage Insurance
Lenders mortgage insurance (LMI) is necessary when a loan's value exceeds 80% of a property's purchase price, or its valuation if refinancing. When the loan-to-value ratio (LVR) exceeds 80%, the lender considers the loan to carry a higher risk, and LMI becomes payable. LMI is designed to protect the borrower, as it covers the lender's risk within a residential mortgage transaction in case the borrower fails to make loan repayments.
Principal & Interest / Interest Only
When applying for a home loan, you can choose between interest-only repayments and principal and interest repayments. With principal and interest, your repayments go towards both the principal (the amount you've borrowed) and the interest charged. With interest-only, your repayments only count towards the interest charged on the loan.
