Residential Property Finance

Residential Property Finance

Castles, Investments and Grown Up Toys…

The long-term protection of your home and growth of your investment portfolio are vital to compliment your business success. Similar to business finance, your home loans and investment loans require a special understanding that only those who specialise in small and medium sized business have.

Home loans for business owners requires a special understanding that those who specialise in SME finance have.

Residential home loans are loans for individuals, couples and families who are buying their own home, purchasing a block of land or building a home to live in.

What is Residential Property Finance?

Residential property finance, or a home loan as it is more commonly referred to, is a loan to buy a property / home. Being a business owner adds a level of complexity and extra requirements to ensure you have the right finance structure in place for long-term growth.

When would you want Residential Property Finance?

Owning residential property is very important for most business owners as it is an essential means to an end:

  • Buy your own home to live in
  • Buy an investment property to benefit from long-term capital growth
  • To invest – in literally anything you want
  • To play – enjoying your hard work is just as important as earning it

Types of Residential Property Loans available:

Standard Variable Rate Loan

Standard Variable Rate Loans, sometimes referred to as ‘Term Loans’, are the standard home loans that Lenders supply. They are the most common type of loan approved by Lenders. On a variable rate, the interest rate will fluctuate with changes in the market.

Fixed Rate loan

A Fixed Rate home loan is offered to a client that requires the certainty of a known repayment amount, and who also wants to protect against possible interest rate increases.

Line of Credit

A Line of Credit allows the client to combine all of their borrowings into a single account. This type of account offers instant access to funds and the client can draw on their line of credit up to their approved limit at any time. The difference between a Line of Credit and Standard Home Loan types are that there are no principal payment requirements, so additional payments can usually be made without penalty. It can also be paid out early.

Construction Loan

Construction Loans are suitable for any borrower intending to build a new home on a vacant block of land, acquire a house and land package or make improvements to their existing home or investment property. The terms and manner in which they operate differ dependent on the application but they are usually offered on a standard variable basis where the borrower is charged interest only on the outstanding balance. Once construction has been completed, these loans are normally converted to one of the more standard loan types.

 

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