Online calculation tools offered by the best Sydney home loan brokers and finance brokers
Before you consider getting a home loan, you should calculate the costs so you can compare rates and find out approximately what you will be paying back every month. The best Sydney mortgage brokers and finance brokers offer calculators on their websites so you can do just that. Some calculators you may find on these websites include those that calculate loan repayments, savings, comparison rates, stamp duty, and a borrowing power calculator.
Residential loans offered by the best Sydney home loan brokers and finance brokers
If you are looking to buy a home or invest in property, you can look at loans to get the money to buy. The following is representative of some loan types you might be able to obtain.
- Construction – A construction loan not only provides you with the finances to pay for your property and construction, it also assists in ensuring all costs are accounted for before you build. You see, the construction process is complicated and delicate since it involves several parties in the process. You will be dealing with lenders, accountants, surveyors, the council, builders, contractors, and solicitors. Since there are many people and businesses involved in construction the risk of something going wrong is high. This could create a problem with obtaining enough money to have the project done. The documents needed for a construction loan include a signed building contract, the council approval plans, Builder’s Insurance, and Builder’s Indemnity and Public Risk Insurance. This takes some of the risk out of the process.
- Low Doc – Low doc (low documentation) residential loans are those that may be approved without the conventional requirements for verification. These are ideal for the self-employed individual, or for those who cannot prove their income via traditional documentation. Some reasons a person might qualify for a low doc loan include the inability to produce tax returns (or they are no up-to-date), your income may be higher since your last tax return, or your tax deductions like depreciation may not be considered an expense. Also, if you operate a home business or a cash business, you may not have the records and documentation needed for conventional loans.
- Second mortgage – If you already have a mortgage on your existing home, but you need to obtain funds for an emergency or for a project, you may qualify for a second mortgage. This option is less expensive and tedious than getting refinanced and you may be able to get a lower rate on a second mortgage.
- SMSF (Self-Managed Superannuation Funds) – You may be able to borrow from your SMSF to buy property. There are specific conditions and requirements to meet for using these funds for buying property. It’s best to talk to a financial planner or finance broker about this loan before you try it.
- Short-term loans – These loans are designed to cover a 12 month period of time and are secured against existing property or assets like vehicles, boats, and jewellery. These are most often used to expedite urgent settlements.
- Family Pledge – If you have a lack of assets for obtaining a conventional loan, a family pledge may be your answer. This is where family members become loan guarantors in order to provide security for a loan. It lets you increase your assets to be considered for a loan and such lowers the LVR of a loan.
- Bridging finance – This kind of financing is used in instances where an individual is purchasing one property whilst selling another. These are short-term loans intended to be used when cash-flow issues arise.
- Private mortgage – Private mortgages are intended to aid with owner occupied, certain construction and sub-division loans, and investor properties respectively. This private funding comes with strict regulations, so consult with the best Sydney home loan brokers and finance brokers before taking this loan option under consideration.
Commercial loans provided by the best Sydney home loan brokers and finance brokers
- Rural property loans – Properties zoned in the rural areas like farms are suited for rural property loans. The money can be used to improve the property, purchase a rural property, refinance it, fund investments beyond the farm, and provide a working capital for the farm/property.
- SMSF – Just like SMSFs can be used for residential property purchases and investments, they can also be used for commercial properties as well.
- Low doc – Commercial low doc loans work the same way as residential loans except for the type of property you intend to finance.
- Specialised property finance – The primary purpose for specialised property financing relates to building structures like motels, hotels, child care facilities, retirement communities, and petrol stations.
So, you can see that just like residential loans, the best Sydney home loan brokers and finance brokers also provide options for commercial properties.
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