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Some of the different types of Loans available through SD Loans & Leasing are:
Some of the different types of Loans available through SD Loans & Leasing are:
Low Doc Loan
A Low Doc Loan requires less information required for servicing. A Low Doc Loan is suited to investors or self-employed borrowers who do not meet the standard lending criteria.
Standard Variable Loan
Standard variable loans are Australia’s most popular type of home loan. The interest rate varies throughout the loan term. These loans generally offer excellent flexibility, low fees and often offer great features such as an offset facility, redraw facility, no limits on additional repayments and in most cases, no early pay-out penalties.
Basic Variable Loan
Basic variable loans typically offer lower interest rates and fewer features than the standard variable loans. You often have the option to pay for any additional feature required. Interest rates and repayments will vary throughout the loan term.
Introductory Loan or Honeymoon Loan
An introductory rate loan generally offers a guaranteed low rate for an initial period of time (usually 12 months) after which most will revert to the standard variable rate. The rate can be fixed or variable.
Fixed Rate Loan
Under a fixed rate loan, the interest rate is fixed for a specified period, usually between one and five years. This loan gives you the certainty of knowing exactly what your monthly repayments will be and peace of mind knowing the repayments won’t rise. However, you won’t benefit if rates go down during the fixed term.
Line of Credit
A line of credit loan provides you with access to the equity in your home or investment properties up to a pre-approved limit. You access the funds as you need to. The interest rate on a line of credit loan is usually a variable rate and repayments are interest only.
Construction Loans
If you are building your own home or investment property, a construction loan may be suitable for you. This loan requires a fixed price building contract from a registered builder. These loans are usually interest only for the period of building and then become principal and interest once building is completed. A construction loan allows you to draw money as is required whilst building. Also, with the usual necessary documents required when applying for a loan, construction loans also require a ‘fixed price building contract’ and ‘council approved plans’.
Professional Packages
Many lenders offer discounted loan packages to attract professionals or larger loans. Eligibility of a Professional Package is based on the loan size, or could be the amount of salary, or the profession, or a combination of all. Depending on the amount you borrow and the type of loan you choose, you could be entitled to an interest rate reduction and many other benefits in relation to your borrowings under this package. Professional packages usually attract an annual fee in return for a range of benefits.
100% Offset Loan Account
A 100% offset loan is very similar to an all-in-one loan. Rather than putting all your salary and other income into your loan, it goes into an offset account that is directly linked to your home loan. The balance must be a minimum of $2000 in the offset account and it is 100% ‘offset’ against your home loan. This reduces the amount of interest you must repay, making your money work harder for you.
SD Loans and Leasing is an independent brokerage firm established in 1999 and is a solution-based Finance Broking Firm based in Cairns, North Queensland, offering finance for a variety of applications such as Equipment Finance, Home Loans, Business Loans, Car Finance and Personal Loans.
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