Home Loans
Whether you are ready to buy your first home or your 10th, ACW Finance can help! Not only can we provide you with access to an extensive range of home loans, but we can cut through the mortgage jargon and simplify the process.
There’s a huge choice of home loans available, and ACW Finance will help you find the best one to suit your needs and budget. Making yourself familiar with a few of the popular products available will give you a strong head start when discussing your loan options with your broker. Here are just a few of the product types you’re sure to come across.
Basic Home Loans
Basic home loans – or ‘no frills’ loans – offer borrowers a loan with a low interest rate. A popular choice among first home buyers, a basic home loan’s interest rate is often half to one per cent below the standard variable rate, which is sometimes combined with minimal ongoing fees.
Drawbacks include limited features, less flexibility, and additional charges if you decide to switch loans or pay the loan off sooner.
Fixed Rate Home Loans
Fixed Rate home loans - Worried about rising interest rates? A fixed rate home loan will allow you to fix your interest rate for a specific period, usually from one to five years. It’s a sound option when interest rates are on the rise or in times of economic uncertainty.
Should interest rates fall, however, you’ll still have to pay off your mortgage at the fixed rate until the end of the agreed period.
Standard Variable Rate Home Loans
Considered a popular mainstream choice, standard variable-rate home loans allow you to borrow money for a set period of time, during which you make regular repayments based on the current interest rate.
The interest rate can vary depending on fluctuations in the official cash rate.
Low Doc & Alt Doc Home Loans
If you’re a self-employed, contract or seasonal worker and do not have a regular income, a low doc loan may be a solution. While making home ownership a possibility for a cross section of Australians workers which previously found it difficult to secure a mainstream bank loan, most low doc home loans typically have higher interest rate.
Split Rate
Home Loans
Want the best of both worlds? A split-rate home loan offers both flexibility and security. A good product for both first time and existing borrowers, split loans allow you to customise your loan’s interest rate as you see fit.
Fixing a portion of your interest rate to give certainty to your monthly repayments should rates increase, but also flexibility through taking out a variable-rate portion.
Interest Only
Home Loans
Interest-only loans offer borrowers lower repayment options, while maintaining many of a traditional loan’s features. This type of loan allows you to pay only the interest component on a mortgage; it does not reduce the principle component.
They are a popular choice for investors looking for good capital appreciation on their investments, however, has a higher rate than others in the current market.