HOME LOANS

Residential Finance

Basic "No Frills" Loans, Similar to the standard variable rate however slightly lower interest without the extra features that tend to increase costs. Ideal for first home buyers because of the low interest rates.

Standard Variable Rates

The Standard Variable offers more features and flexibility so the rate is slightly higher. Features include redraw facilities, split your loan facility between variable & fixed, making extra repayments with no penalty, portability etc. However the variable rate is subject to change at any time - the banks tend to increase rates in line with the Reserve Bank's decision to increases rates. When rates increase so to do your repayments. This can also work the other way when rates fall however that's the gamble you take on a variable rate loan.

Fixed Rate Loans

The decision to fix your interest rate for a set period of time. This option can give you the security of knowing exactly what your repayments will be and you can budget accordingly. If rates go up you are safe and your rate and set repayments remains locked in. However with fixed rates you take the risk against the market and if rates fall you miss out.

If you break your fixed rate period to take advantage of the reduced standard variable you may pay penalties or break costs in doing so. At the end of you fixed term you can opt to lock it in again to convert to the standard variable rate.

LINE OF CREDIT FACILITIES

A LOC account is different to a traditional loan account it is an all in one account. This means that your loan account becomes your every day transaction account. You can think of it as a large credit card - when you pay money into your account you have the ability to redraw the money back to its original limit in the future. A LOC has a variety of purposes including housing, personal or investment. So, whether your financial goal is to use your mortgage to maximise your wealth or to pay off your home as quickly as possible, a Line of Credit facility gives you the freedom to choose. However the downside of a LOC is it sometimes can be more expensive than standard products and is really only appropriate for those who are disciplined and have strong budgeting skills.

PROFESSIONAL PACKAGES

Professional Packages are a great way to get a reduced rate and fees. Usually Pro Packs are offered to clients looking to borrow over a certain amount (the standard is $250k) and also offered to clients in certain professional groups. Basically the professional package features: interest rate discounts, reduced establishment, reduced ongoing fees, fee-free credit cards, fee-free transaction accounts and discounts on other services such as insurance etc.

REFINANCING

If you are already a home owner it is still a good idea to keep up to date with your mortgage and lending institution. As the industry is constantly growing we see new products and features entering the market every day, so keep in contact with your broker on a regular basis to ensure your mortgage structure is working to its full potential. SCR Finance can help you better manage or alter your current mortgage to best suit your individual needs. An experienced SSL Specialist will analyse and compare products for you, coming up with the best loan solution to meet your specific needs.

 

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