Whether you are buying your first home, refinancing, or investing - we as your mortgage (home loan) broker can help you with expert advice and assistance throughout the entire process.
Types Of Home Loans Available In Australia
How long would it take you to search 100’s of loans from over 80 different Lenders?
Once we have all your personal financial information - we can do an assessment for you in minutes - For Free!
Let us do the hard work for you. With our unique Finance software platform, our RedCap Finance brokers will search hundreds of loans from our panel of lenders to find the one that’s right (not unsuitable) for you.
RedCap Finance Brokers do not normally charge any fees for arranging residential home or real estate residential investment loans. In the vast majority of situations this is not required as lenders pay us commissions for introducing your business to them. We do on occasion deal with non panel lenders who may not pay commissions. In the case that this type of lender is your best option we would negotiate a fee for service with you.
NB: We also have a commission clawback policy.
Most lenders will fully or partially "claw back" any upfront commission they have paid us if a client's loan is repaid in full within the first 1 - 2 years of it's origination.
This would usually happen if the property is sold or the loan refinanced to another lender. To compensate RedCap Finance Brokers for our out of pocket expenses we will charge you the amount the lenders have clawed back from us if a loan we have arranged is paid back within the lender's claw back period.
If you are undertaking further borrowings through us at the time you current loan is repaid or within 3 months of it being repaid we will waive or refund this fee.
SO - ANY fee that we negotiate with you (remembering that for the vast majority of our clients - no fees will be payable by the client) will be disclosed to you in writing to you BEFORE your loan is submitted to a lender, and you have acknowledged in writing that you are in full agreement with this fee policy.
Your RedCap Finance broker will find out as much as possible about your circumstances and goals to focus on helping you get what you need.
Your RedCap Finance broker can compare hundreds of home loans from over 80 different lenders, including the big four banks, to quickly narrow down your choices to the ones that suit your needs.
Your RedCap Finance broker will calculate how much you can borrow and how much you can comfortably afford to repay.
Ask away...our RedCap Finance brokers have a wealth of knowledge that they're only too happy to share with their clients.
Your RedCap Finance broker can help you get pre-approval for your home loan so you can shop around for your new-to-you home with confidence, knowing what you can actually afford to spend.
If you decide to go ahead with an application, your RedCap Finance broker will prepare all of the paperwork and support you through the entire process - according to our customers, this saves them time and effort.
When the world's financial economies went into "melt-down" as a result of the Global Financial Crisis (GFC), one of the hardest sectors to attain finance has been with major construction and development projects. What has become more relevant over the last couple of years is that "the funding sources create the rules, and in order for you to receive funding, you and I have to work within the rules".
Banks and lending institutions within Australia have tightened up their lending policies and guidelines to an extent where their risk is at an absolute minimum when it comes to lending money on major development and construction projects. This can make it very difficult indeed for a developer to get the finance they need to undertake some of these large projects. So what are some of the main factors these banks and lending institutions look for?
1. EXPERIENCE
The lender requires confidence in the developer to be able to cost and efficiently construct the project. Previous experience will be well regarded.
2. EQUITY
Some equity from the developer will be required to start the process. The amount of deposit will be determined on a case by case basis. TDC (as below) may apply and presales may also be a requirement.
3. LOCATION
The location of the development may also become a major factor in determining "Risk" for the Lender. Some areas in each state are not looked upon as "desirable" or "economically viable"
4."TDC"
Traditionally, "Total Development Cost" (TDC) has been the banks and other funders standard method of funding. Basically, this is where the funder would lend a percentage of the TDC up to a maximum of 80% of the development costs.
This type of funding is becoming more widely used as the developer may have access to more funds with different lending policies to the Banks. It is not unusual for the interest rate to be higher with this type of funding, however, it does provide a "means to an end". The experience, equity and location factors (as above) still apply here, however, the most common method of funding here is by way of Gross Realisable Value (GRV). This method of finance is based on the end value of the project, on a cost to complete basis.GRV finance is generally less stringent requiring minimum or no presales. The maximum LVR for this type of facility is usually 70% of GRV.
In relation to land settlement, the loan cannot exceed 70% of the value of the land "as is". Should a property be acquired without the relevant DA approvals, and the developer put in place the appropriate DA approvals adding significant value to the land, it may be possible to borrow 100% of the land and development costs. Alternatively, should a developer acquire an approved development site, it would mean that they would need to provide at least a 30% deposit of the "as is" value of the land. Assuming that the borrowings do not exceed 70% of GRV, the entire project would be fully funded from this point.
EZ Finance has many sources of non bank and private funders and by utilizing the GRV method, a property developer is generally able to borrow more money against their project, minimising their equity outlay.
Our commercial managers are in constant contact with banks and high net worth Investors located in many countries overseas. Our sources in India, China and the US are just starting to release funding for investment in Australia as we are seen to be a safe country in which to invest. Places like China have national laws which only allow their people to own a property for a capped time period, so they are not able to keep the property permanently. Chinese investors see Australia as a good permanent investment option.
A standard Car or Truck loan is the most common type of loan in the market place. The loan is secured against the vehicle for a specified term (normally 5-7 years). The customer will take possession of the vehicle at settlement of the purchase and the financier retains an interest in the vehicle until the entire loan is paid back. Standard terms available with this loan may include
This type of loan is suitable to the person who is looking to purchase a new or near new vehicle and may not have significant business use for the vehicle. (A tax deduction may apply to some fees or repayments if the vehicle is for business use - please seek advice from an accountant on this)
A Finance Lease is commonly used to purchase business or commercial vehicles. Whilst the purchaser has 100% use of the vehicle, the financier retains actual ownership. In essence, the financier purchases the vehicle on behalf of the customer, who then Leases the vehicle from the financier and pays a fixed monthly lease payment for the term of the lease. At the end of the lease period, the customer can either pay the residual amount owed (final lump sum payment) and take full ownership of the vehicle or re-finance the residual amount (or trade in the vehicle and start again with a new lease and new vehicle)
Normal structures for Leases include.-
Ideally, vehicle leasing is suitable for companies, partnerships, sole traders and individuals whereby the vehicle is used for income producing purposes.
Speak with our RedCap Finance Commercial Advisors for any Business or commercial financing.
* Please speak to your Accountant or Financial advisor before committing to a finance contract
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REMEMBER: When it comes to protecting your Property Investment's VALUE - the 10 things that really matter include:- demographics, work trends, settlement patterns, finance, taxation, regulations, compliance, affordability, supply, and lastly demand.
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Our Preferred Home Loan and Finance Brokers are... RedCap Finance Brokers - 99 Collingwood Drive Collingwood Park (Ipswich) Qld 4301.
Allan W Pearson (RedCap Finance Brokers) Authorised Credit Representative 523250 of Australian Credit Licence: 392611
NB: Your Full Financial Situation would need to be reviewed prior to acceptance of any loan offer or product!
