What type of loan is right for me?
There are hundreds of different loans available today all with there own features
and benefits. These are available from a range of different lenders, from major
banks, non-bank lenders and even private funders.
The type of loan required by you can depend on the purpose of the loan, the type
of security offered, the loan features required and the type of interest rate you
Primarily for amounts between $5,000 and $80,000. They can be secured by an acceptable
asset or unsecured depending on your credit worthiness. Consider a Credit Card for
amounts below $5,000. Personal loans are usually provided to purchase a Car, or
other major asset, to pay for a holiday, to pay for a major event such as a wedding,
or for any other worthwhile purpose.
Home Loans are primarily used to purchase a home to live in secured by the house and
land itself. The amount you can borrow is limited to the value of the security offered
less a margin applied by the lender. You can generally borrow up to 80% of the securitiy's
current market value but you may be able to borrow more if you agree to take out
Lenders Mortgage Insurance.
Similar to a Home Loan but for the purpose of purchasing an Investment property
that will be rented to others.
For the purpose of building a home or investment property. The loan is generally
provided in stages as the property is being built. Loan repayments are not generally
required until construction is complete however you may need to meet any loan interest
as construction progresses.
Line of Credit / Personal Overdrafts
A Line of Credit (also known as a Personal Overdraft or Equity Loan) has a predetermined approved amount of money (a limit) that an
can be utilised as required at any time. Lines of Credit are generally secured by
the owners' equity in a property and are sometimes provided in conjunction with
other types of loans. These come in many different flavours and borrowers must be
disciplined to remain within approved limits.
Business / Commercial Loans and Overdrafts
These are loans specifically for any worthwhile business venture including the purchase
of business premises, stock, other business assets and equipment and to meet the
businesses cash flow requirements.