Loan Types

Which loan would suit you?

The loan market doesn’t stand still. New products are launched frequently. At Lending Services Victoria we compare over 1400 different home loan products from various lenders to see which ones suit you and your needs.

The following types of loans are explained:

  • Variable Loans
  • Fixed Rate Loans
  • Split Loan Options
  • Non Conforming Loan
  • Home Equity Loans
  • Line of Credit Loans
  • Lo Doc Loans

Variable Rate loans offer you maximum flexibility and great features, including the option to fix or split your loan, the ability to make additional repayments when you want, and the option to redraw these funds for any purpose when you require it.

Pros:

  • Repayments fall when official interest rates fall;
  • Standard variable rate loans offer flexibility and additional features, such as the ability to make additional payments, which enables borrowers to accelerate the repayment of their loan, and a redraw facility (take out any extra money that you have put in);
  • Lower introductory or honeymoon rates.

Cons:

  • Interest rate is higher for standard variable loans than basic loans because they usually offer additional features;
  • Repayments rise when interest rates rise.

Fixed Rate loans protect you against interest rate rises for an agreed time, so you have peace of mind knowing your repayments won’t increase. Fixed rate loans lack the flexibility of variable rate loans such as the ability to make unlimited additional repayments. This is a trade off for the certainty of locking in the rate.

Pros:

  • Repayments do not rise if the official interest rate rises;
  • Provides peace of mind for borrowers concerned about rate rises;
  • Allows more precise budgeting.

Cons:

  • Repayments do not fall if rates fall;
  • Allows only limited additional payments;
  • Penalises early payout of the loan or conversion to a Variable Rate loan.

Split Rate loans combine the flexibility of a variable rate and the certainty of a fixed rate, so you benefit when rates decrease and are protected when they increase.

Pros:

  • Provides some peace of mind for borrowers concerned about rate rises;
  • Provides more certainty in budgeting than a loan which is totally variable;
  • Can make additional payments on variable portion.

Cons:

  • Allows limited additional payments only
  • Repayments will rise with rate rises

Non Conforming Loans have been designed especially to help borrowers who do not meet normal lending criteria. Borrowers that fit into this category include those who have an impaired credit history, such as judgements or defaults.

Pros:

  • Overlooks poor credit rating

Cons:

  • Higher interest rate than traditional loans
Home Equity Loans allow you to unlock the equity in your existing property for other opportunities such as renovating your home, investing in shares or financing an investment property.

Line of Credit loans are interest only variable rate loans that have full flexibility attached to them such as cheque books and credit cards. Most line of credit loans offer interest capitalisation features provided the borrower has sufficient equity in the loan account. Line of credit rates are slightly higher than standard variable rate term loans.

Pros:

  • Use the money you need and pay it back when you can;
  • Interest rates tend to be lower than credit cards or personal loans;
  • Offers flexibility.

Cons:

  • Possibly reduces equity in your residential property;
  • Slightly higher interest rates;
  • Need to be disciplined to make principal payments regularly;
  • Can be expensive if not used carefully.

Lo Doc loans are loans which do not require any formal financial documentation from the borrower. They are generally used by self employed people with a lack of financial statements or complex entity structures making proof of income difficult. Tax returns or financial statements are generally not required.

Lenders usually base their qualification for such loans on an income declaration but no proof of income is required. Terms and credit requirements for lo docs vary from lender to lender and because no proof of income is generally required lenders are more conservative with their lending.

Whether you’re buying your first home or your next home, Lending Services Victoria offers a wide range of home loans to suit your needs. We understand that making the right choice is important to you in these changing times. We can help make choosing the right loan easy, with a range of flexible products.

What are your goals?

Do you want to pay off your new loan as quickly as possible? Do you need to keep your repayments down because your family is growing? Do you need extra features like a redraw facility or are you better off fixing a portion of your home loan for the next few years? Do you want to keep your current home as an investment property and use the equity you have in it as a deposit? Or are you building your new home and need a construction loan? Whatever it is we have the expertise and experience to help you with these decisions.

What type of loan is right for you?

There are many different loan features and fees to be considered, such as rates, mortgage offset, redraw, application and ongoing fees to name a few, and there are different loans to suit different needs. We can make choosing a home loan easier by providing key information that will help you make a well-informed decision.

Find the loan that is best for you.

How much can you afford to borrow?

We have loan calculators that will allow you to determine how much you want to borrow. Click here for more information.

What next?

Call Lending Services Victoria to make an appointment. Contact us

Whether you are considering buying your first investment property, or building up your portfolio, getting the right home loan advice to help you maximise the performance of your investment is critical.

  • Are you looking to repay only the interest to maximise negative gearing?
  • Or do you want to pay off the loan as quickly as possible?
  • Are you planning to use the equity in your home as a deposit?

We work closely with your Financial or Tax Adviser to ensure the appropriate structure is in place.

Property Investment

If you’re looking at property investment in Australia you’ll find hundreds of investment mortgage products available. Every property investment customer’s needs are different – at Lending Services Victoria our loan brokers are qualified to guide you through the many loan options available to you.

It’s all about mortgage product knowledge and professional service. That’s why we take the time to meet with you and discuss your investment lending needs. It’s important that your broker understands your individual needs.

What type of loan is right for you?

There are many different loan features and fees to be considered, such as home loan rates, mortgage offset, redraw and ongoing fees to name a few, and there are different loans to suit different needs. We can make choosing a home loan easier by providing key information that will help you make a well-informed decision. Find the loan that is best for you.

How much can you afford to borrow?

We have different loan calculators that will allow you to determine how much you want to borrow. Click here for more information.

What next?

Call Lending Services Victoria to make an appointment. Contact us

Individuals have a range of personal car finance options available to them, the choice of which can depend on how often you use your vehicle for business, whether your employer offers you salary packaging and the type of car you want to buy. We will work closely with your Financial or Tax Adviser to ensure the right option is chosen.

Car finance options

Commercial Hire Purchase (CHP)

Commercial Hire Purchase is a flexible finance option that suits some individual borrowers who use their vehicle for business purposes.

Novated Lease (Salary Packaging)

Novated Lease is a method of salary packaging a car, under which an employee leases a car and their employer pays the lease repayments from their pre-tax income. Depending on the type of car, kilometres travelled annually, employee’s salary and a range of other factors, Novated Leasing can be a tax-effective way to purchase a car.

Fully Maintained Novated Lease

Fully Maintained Novated Lease is a method of salary packaging a car and it’s operating expenses, under which an employee leases a car and their employer pays the lease repayments and operating expenses from the employee’s pre-tax income. Depending on the type of car, kilometres travelled annually, employee’s salary and a range of other factors, a Fully Maintained Novated Lease can be a tax-effective way to purchase and operate a vehicle.

Car Loan

Car Loan, or more specifically a secured Car Loan, is a type of loan where the financier lends money for the purchase of a vehicle and also takes security over the vehicle to protect the loan.

Personal Loan

A Personal Loan is a type of unsecured car loan, whereby the financier lends you money but doesn’t take any security over the vehicle.

What next?

Call Lending Services Victoria to make an appointment. Contact us


Equipment Lease options

Lending Services offers a complete range of structures and options for financing business equipment.

Asset Lease

An Asset Lease enables the customer to have the use of their business equipment and the benefits of ownership, while the financier retains actual ownership of the equipment.

Commercial Hire Purchase

Commercial Hire Purchase is a finance product where the customer hires their business equipment from the financier for a fixed monthly repayment over a set period of time.

Chattel Mortgage

Under a Chattel Mortgage the customer takes ownership of the equipment (chattel) at the time of purchase.

Equipment Rental

Equipment Rental is an agreement between a financier and a customer whereby the financier buys the equipment on behalf of the customer and rents it back to them over a fixed period.

What next?

Call Lending Services Victoria to make an appointment. Contact us

If you want to buy a commercial property or re-finance your existing loan, Lending Services Victoria has made it easy for you to do business. We have access to leading Commercial Lenders and our commercial property brokers provide professional investors, developers or experienced owner occupiers with simple through to complex loans and the financial freedom to manage your investment the way you want to.

Commercial Loans are normally sourced to assist in the Purchase or Refinance of Commercial, Industrial or Retail properties. Commercial Finance can also be used to assist in the purchase of Businesses or Business Assets or provide funds for working capital requirements.

Some of the options are:

  • Cash Flow Lending
  • Commercial Property Loans
  • Working Capital Loans
  • Debtor/Factoring Loans
  • Equipment Financing

So whether you’re buying a business or Commercial property, Subdividing a property, raising money to pay off debts, seeking a better deal on an existing loan, or expanding your business, call us! We will take the time to listen and discuss your needs before determining the approach that’s right for you.

What next?

Call Lending Services Victoria to make an appointment. Contact us

 

We Understands Your Needs

We Understands Your Needs