Posted by Trent Lee in Business Loans, Home Loans, Investment Loans, Mortgage Lingo on August 18th, 2020
Rate lock is an option you can choose when applying for a fixed rate home loan. It allows the borrower to lock in the interest rate for a specified time period at the prevailing market interest rate. The benefit of rate lock is to maintain the rate offered by the lender during the application process through to settlement. To obtain the benefit, the lender generally charges a fee.
Posted by Trent Lee in Business Loans, Loan Types, Mortgage Lingo on August 18th, 2020
A line of credit is like a personal overdraft or very large credit card. LOC’s provide borrowers access to a predetermined amount of credit whenever they need it.
Posted by Trent Lee in Business Loans, Loan Types on August 18th, 2020
A business loan is a loan for business purposes such as car loans, cashflow and invoice financing. Learn more and/or apply at our Business Loan page.
Posted by Trent Lee in Business Loans, Home Loans, Investment Loans, Loan Types on August 17th, 2020
Repayment of the loan principal is deferred for an agreed period. During this time, the borrower only pays the interest charges which means a lower minimum payment.
IO loans are often preferred by investors because they enable the borrower to purchase a more expensive property for greater returns (e.g. 10% capital growth on $500,000 is greater than 10% on $400,000). However, using an IO loan is an aggressive strategy whereby investors risk that the property may not increase in value, or may in fact decrease.
