Home Loans
There are literally hundreds of home loan products available in Australia.
Local and international banks, building societies, credit unions and many specialist lenders offer an endless choice of home loan options.
Fox Finance Group are experts in assisting you determine the best home loan for your individual circumstances.
Types of home loans available:
- Variable Interest Rate Home Loans
- Fixed Rate Home Loans
- Combination Variable - Fixed Home Loans
- Introductory & Honeymoon Home Loans
- No Deposit or 100% Home Loans
- Professional Home Loan Packages
- Line of Credit - Equity Home Loans
- Investment Home Loans
- Bridging Home Loans
- Second mortgages
Home Loans for Self Employed People
Today, more and more people are self employed (i.e.: they work for themselves as contractors or in their own business). In the past, obtaining a home loan has often been difficult for the self-employed, as they have been required to prove a savings history, regular income and profit over a set period of time.
It is now much easier to get a self employed home loan.
Self employed people who can prove their income can also qualify for the above types of home loans.
Some lenders offer low-documentation (no need to provide financials) home loans at the same rate as standard variable home loans, but low documentation home loans and non-conforming home loans are often priced higher than full-document and standard home loans and interest rates of course typically relate to the lender's view of you as a risk. (Variances are usually around 1-3% higher than a traditional loan, but rates depend on your level of credit impairment or risk).
Don't despair if you can't get lower rates immediately, as increasingly lenders will revert to lower rates after consistent 'on time' repayments. If you have been paying a higher rate on a home loan for more than a year and believe you have a case for rate review, talk to us now.
Home Loans for Credit Impaired People
Bad credit history? Less than perfect credit check? This is one of our specialties, at Fox Finance Group we understand that sometimes these situations can be out of your control e.g.: divorce, separation, loss of job etc.
We can help in these circumstances with specialised lenders that offer a 2nd chance and can help you get back on track to achieving your dreams and goals of owning your own home.
Did You Know?
Switching from monthly to weekly repayments on your home loan may cut over seven years off a 30-year home loan of $330,000*. Let’s say you currently pay $2,479 a month; pay $1,239 a fortnight instead and you’ll save over $160,000 in interest. If the terms of your home loan permit extra repayments and you pay an extra $20 a fortnight you will shave over 8 years and an extra $21,000 in interest off the life of your home loan.
Budgeting is a great way to work out how much more extra money you can afford to pay off your home loan. By cutting down on $3 worth of unnecessary expenses per day, you could put around $40 extra on your mortgage every fortnight.
Please call one of our experienced staff to confidentially discuss your unique circumstances on 1300 665 906.
*Please note that the interest rate used in these calculations was 8.25%. Feel free to call us to see how much you may be able to save off your loans.
Interest Rates - Where to Next?
If there’s one thing most of us don’t like hearing about, it’s another rise in interest rates. While no one can predict whether rates will keep rising, the Reserve Bank (RBA) has indicated that further hikes are on the cards. The RBA’s latest quarterly review of the economy* reveals inflation is moving upward to reach levels of 3.5 to 3.75 per cent through next year and into 2010.
“If this is not reversed reasonably quickly, the recent pick-up in inflation carries the risk of generating an upward drift in inflation expectations, which could feed back into wage- and pricesetting behaviour,” the February RBA Statement on Monetary Policy says.
“Absent a further shift in economic risks to the downside, monetary policy is likely to need to be tighter in the period ahead.”
As Australia’s chief regulator of monetary policy, it is the Reserve Bank’s role to encourage economic growth by keeping inflation within a target band of 2 to 3 per cent. The main tool of monetary policy is setting interest rates, so when inflation is forecast to move over 3% in the long term, the RBA puts on the brakes and raises rates. When interest rates go up, banks and other lenders have to pay more interest on the money they owe, so these costs are fed on to consumers. This means the interest rate you’re charged on your home loan, personal loan or credit card move largely in line with the RBA’s interest rate changes.
The idea behind raising rates is to put a lid on consumer spending. The more interest we pay for our borrowings, the less likely we are to borrow as much or spend as much - hence a slow-down in consumer demand. The Reserve Bank states that low unemployment, above-average growth in real wages and tax cuts are helping to boost spending power. The expansion of the Chinese economy is fuelling growth in global commodity prices,particularly for Australia’s mineral exports. This in turn stimulates business investment and national incomes.
On the other side of the equation the bank warns that global economy and financial markets remains a major source of uncertainty. Should the tighter credit supply negatively impact on Australia, inflation would fall more quickly than is currently forecast. Given the uncertainty about the future, we are committed to providing you with the best possible lending deal for any given situation. Whether interest rates rise or lower we can advise you of the best course of action for your financial situation.
Bring us your wish list and contact us today - you may be surprised what solutions we have to offer.
*Source: 11 February 08 RBA Statement on Monetary Policy (http://www.rba.gov.au/PublicationsAndResearch/StatementsOnMonetaryPolicy/statement
_on_monetary_0208.html)
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