All of these products offer a vast and differing range of features and benefits, some which may be more suitable to you than others.

If you need more information on any home loan products, contact us today.

No Deposit Home Loan (NDHL)

The main feature of a No Deposit Home Loan (NDHL) is self-explanatory - it allows you to borrow up to 100% of the purchase price of your home whilst still offering you a full range of features, including offset and redraw facilities.
Historically, NDHL have attracted a higher rate of interest, but competition amongst the lenders has seen many lenders pass on their best rates for NDHL.

NDHL can be utilised to build a home or investment property or to purchase an established home/investment property. It is ideal if you have good cash flow, but low equity.

Just a word of warning, remember there are a number of other costs associated with buying or building a home and you may have to contribute towards these costs. Ask us about 105% home loans.

In the main, tighter lending guidelines are associated with NDHL's. Individual circumstances differ and that's why you should consider taking up the free service of an expert from Better Choice to review your options.

Professional Packages

Professional Packages are permanently discounted loans for borrowers that meet certain criteria. With some lenders it means actually being employed in a certain profession. But with the vast majority of lenders, Professional Packages are available to a borrower, borrowing in excess of $150, 000.

If you qualify for this product, then the rates will be hard to beat. Discounts vary depending on the size of the loan and start on loans from $150,000. Discounts of up to 0.8% on variable rates and up to 0.15% on fixed rates may be available. You will still enjoy all of the features that most borrowers want today, coupled with other attractive incentives such as concessions on credit cards, bank accounts and lender application fees.

Introductory Rate Home Loan

The Introductory Rate Home Loan starts with a low interest rate (often the lowest on the market) and is suitable if you want lower, fixed repayments during the first 12 months of the loan to make things easier. At the end of the initial 12 month term, the loan converts to the standard variable interest rate or the option of a fixed interest rate.

The advantage of an Introductory Rate Home Loan is that it offers borrowers a chance to reduce the principal quickly by making extra repayments. The main disadvantage is that most banks charge penalties if you pay out these loans within the first three to four years.

Another disadvantage of this loan type is that generally, after the first 12 months on the considerably reduced rate, the variable interest rate would revert to the lenders standard variable rate. The standard variable rate can be up to 0.7% more expensive than the lender's basic or professional variable rate.

Certain lenders will pass on professional package discounts (variable rates) after the 1st year, but the ongoing discount is significantly less, approximately 0.4%.

Ask a Better Choice Consultant to do the figures as to whether this loan suits you.

Standard Variable Home Loan (SHVL)

These days few loans are written as Standard Variable Home Loans (SVHL). Many SVHL features are available via a Basic Variable Loan (BVL). BVL are up to 0.7% cheaper than SVHL. Many borrowers couple a Professional Package and a SVHL to reduce the interest rate down by up to 0.7%.

Line of Credit Home Loan (LOC)

The Line of Credit (LOC) is the 'King of Flexibility'. LOC's are generally evergreen facilities, ie there is no term or end date to the loan. The borrower can use as much or as little of the LOC limit as they would like and only pay interest on what you actually use. Large lump sum repayments can be made at anytime and then these funds can be redrawn for another personal purpose.

With cheque book, internet, phone & ATM access to funds LOC's are the perfect loan product for:

• Share and managed funds investors
• Borrowers who wish to operate their own mortgage minimisation program. (see your financial advisor before embarking on a mortgage minimisation program)
• Borrowers who do not require the total loan proceeds all at once and wish to progressively draw down the loan.

Fixed Rate Home Loan (FRL)

A Fixed Rate Home Loan (FRL) offers you security. Feel safe knowing that there will be no change in the interest rate of your loan over a set term - anywhere from 6 months to 10 years. Once the term expires the loan rolls over to a variable rate, or you have the option of re-fixing your rate for another term.

FRL are generally less flexible than variable loans, for example:

• You are limited in how much you can make in extra repayments
• In the main, they do not have a 100% offset feature
• In the main, they do not have the redraw feature
• In the main, you cannot progressively draw a fixed rate loan for construction purposes. 

Should you wish to payout a FRL early; you may be up for significant early payout penalties.   To counteract the draw backs of FRL's, we suggest the borrower may wish to consider a combo loan- part fixed or part variable. Ask us about our Combo Loans.

FRL's are perfect for investment property purchase.

Combo Loans

Want the security of knowing that your interest rates will not increase for up to 10 years, but don't want to sacrifice all the great flexibility of a variable loan?

Then we suggest you apply for a 'Combo Loan', ie part of the loan fixed for up to 10 years and the other portion variable.

Home to Home Loans

So you have found the home you want to buy, but you haven't even placed your existing home on the market.
To top it off, the Real Estate Agent is saying, "Don't bother putting an offer in subject to the sale of your existing house". What can you do?

Consider a home to home loan!!!

If you have sufficient amount of equity in your existing home the lender may fund the purchase of the new home, prior to you selling your existing home.

But hold onto your horses, this loan doesn't possess magical properties, and there is no denying you would be carrying considerable amount of debt, whilst you sell your existing property.

There are two ways the lender will assist you in making the repayments, ie the lender will allow the interest to accumulate to the loan or the lender will advance you additional monies to help with the repayments.

The lender will allow you up to 12 months to sell your existing house. If this option is for you, we think you will be pleasantly surprised with the interest rates.

Non-Conforming Home Loan

If you answer "yes" to any of the following questions, you may wish to consider a Non-Conforming loan:

• Do you have a poor credit history?
• Have you been previously bankrupt?
• Are you self employed and have been trading for a limited amount of time?
• Are you self employed, have difficulty in proving your income and have a minimal deposit?

Non- Conforming Lenders (NCL) specialise in dealing with borrowers of this type. Generally, NCL's have higher interest rates depending on your situation but with a good repayment pattern these interest rates can step down over a number of years.

Better Choice strongly recommends that borrowers seek independent legal and financial advice prior to taking out a Non-Conforming Loan. 

Lo Doc Loans

Are you self employed and at times have difficulty proving your income? Or are you a wage earner and due to remuneration package variables such as bonuses and commission you also have the difficulty in proving your income?  If this is the case, then you may consider a Lo Doc Loan for your funding needs.

Instead of having to provide the lender with reams of paperwork justifying your income, all you need to do is fill in a declaration stating your income. Other lending criteria associated with Lo Doc Loans include:

1. Possession of registered ABN (Self employed borrowers)
2. Minimum 2 years self employed (Self employed borrowers)
3. A clear credit history
4. 20% equity in the real estate transaction

Should your situation not qualify for the Lo Doc policy set-out above, rest assured non-conforming lenders will assess borrowers who have been self employed for less then 2 years or have less than 20% equity or whose credit rating is less then squeaky clean.

Better Choice strongly recommends that borrowers seek independent legal and financial advice prior to taking out a Lo Doc Loan. 

No Doc Loans

If over time, through "canny" investment you have built up sufficient equity in real estate and want to invest further, you may wish to consider a No Doc Loan.  That's right, No Doc means what it says, no need to provide the lender with any proof of income or provide any statement of assets or liabilities. No Doc borrowers are predominately:

1. Borrowing for investment purposes
2. Self employed
3. Have approx 30% equity in the real estate transaction
4. Have a clear credit history 

Better Choice strongly recommends that before taking out a No Doc Loan, the borrower seeks independent legal and financial advice.

Deposit Bonds

At Better Choice Mortgage Services we understand that the burden of a significant cash out lay once the vendor accepts your offer can be difficult or impractical. Your cash may be tied up in a term deposit which may prove costly to break or the majority of your cash may be tied up in real estate equity and accessing this equity may take longer than is practical. And if you are 'buying off the plan' your deposit may be 'tied up' for up to 5 years!

The solution to these conundrums may be a Deposit Bond (DB). A DB takes the place of the cash deposit required between the time the vendor accepts your offer and the day of settlement. At settlement you must pay the final purchase price of the property (including the amount of the DB). Your loan or cash equity takes the place of the DB.

DB's are especially useful in purchasing apartments off the plan where the vendor requires a 10% deposit and the apartment may take up to 5 years to complete.

A DB is also useful in Australian states where a 10% deposit is the norm eg NSW.

If you, as the purchaser fail to settle on the property the vendor may then request that the DB issuer pay to the vendor the face value of the bond. The issuer of the DB will then pursue you for the face value of the bond.

Advantages of DB's:

• Cost effective: The once off premium is generally less than interest costs if you were to raise a loan for the deposit.
• The application process for DB's is very streamlined and a DB may be available within 5 days of application
• Saves you having to break term deposits or access equity within existing properties
• Especially useful when purchasing apartments off the plan, where your deposit may be tied up for up to 5 years. 
  

Commercial Loans

Commercial lending can be a more complicated involved process. Factors including:

• The nature of your business and the industry you operate in
• Your historical and existing financial situation
• The purpose of your borrowing requirement

All play a role in getting a commercial loan application approved.

Whether you wish to:

• Purchase an established commercial property
• Construct a commercial property or large scale residential development
• Purchase a business

A skilled Better Choice Finance Consultant can look at placing your commercial finance requirements with up to 35 different lenders and tailor a financial package to suit your needs.

Car & Equipment Loans

Wanting to purchase that zippy red sports car, or are you wanting to update the equipment in your processing plant for increased efficiencies?

A Better Choice Consultant can help you with whatever your vehicle or equipment financing needs may be. We have numerous relationships with specialised equipment financers and we can put together the most competitive equipment finance package available.

Sound good, sounds even better when we tell you that the majority of Better Choice Mortgage Services equipment finance packages don't require bricks and mortar security. Speedy, cost efficient and probably no real estate security that's how equipment finance should be.