Buying a property can be a daunting process, so at Oracle FP we have partnered with Fully Licenced Organisations with the aim of reducing the stress of buying by having one or more of our partners clearly explain to you:
Where and what you can buy
How we will help you put together your deposit
What your borrowing power is along with the best place to borrow it from
Exactly what costs are involved and why
How your income tax will be able to significantly help you to pay for your Investment Property
Any other decisions you need to make when considering an Investment PropertyPart of our role at Oracle FP is to ensure that we put our clients in front of the best mortgage professionals to suit their individual needs. By doing this, it ensures that our clients are getting specialist mortgage advice through one of our licenced partners; who have access to various loan options from an ever-expanding panel of lenders. This ensures that our clients are assisted in choosing the right loan for their individual circumstances and that you are guided through any financial decisions that you may be thinking about now, or in the future.
PLEASE GO TO OUR “PARTNERS” PAGE TO SEE ALL OF THE ORGANISATIONS WE PARTNER WITH incl THEIR AFS, ACL & AFSL NUMBERS.
Our role is to guide you through the process to ensure that all your needs and options are considered. We make sure that this exciting opportunity is professionally managed to reduce the time and worry for you throughout the purchase. Oracle FP takes care of the fiddly, stressful side of monitoring the process and provides updates to you; stage by stage.
If you are researching your finance options, everyone will be advertising the best deal, but what they may omit to tell you about are the hidden costs, or just as importantly how to structure your finance to suit your ongoing and future needs.
Don’t do it on your own. Contact us at Oracle FP.
Choosing The Right Loan
There are various types of home loans, all offering different rates and features, so always check the terms of your loans.
We put you in touch with mortgage specialists to provide you with comparisons of various loan options from a panel of lenders, and to assist you with choosing the right loan for your circumstances. And if you are ready to, feel free to contact us.
The variable rate loan, like a basic home loan, offers more features and flexibility so the rate is slightly higher. The extra options (for example a redraw facility, the option to split between fixed and variable, extra repayments and portability) should be taken into account when choosing your type of variable loan. Repayments will vary as interest rates fluctuate.
These loans are set at a fixed rate for a specified period – usually one to five years. The advantage of allowing you to organise your finances and repayments without the risk of rising interest rates is offset by the disadvantage of not benefiting from a drop in rates. At the end of the term you can lock in another fixed rate, switch to variable or go for a split loan. However these loans may have limited features and lack the flexibility of variable loans. There may be early exit fees and limited ability to make extra payments.
Splitting your home loan marries the flexibility of a variable rate loan with the stability of a fixed rate loan to reduce the impact of any interest rate changes. Split loans are especially popular when interest rates are increasing. By splitting a loan, borrowers can be protected against the risk of higher rates. If interest rates increase the fixed portion repayments will remain the same but the variable portion repayments will increase. But if interest rates decrease then the variable portion of the loan will be repaid faster. The loan can be divided equally or split into different amounts, eg 60% fixed and 40% variable. Split loans can be customised to take advantage of the various features that different loans have to provide. The features available with this type of debt make it particularly attractive for first time borrowers.
If you’re building a new home or planning major renovations to your existing home, a construction loan is generally the most appropriate funding option. The difference between a constructions loan and other types of loans is that a construction loan is drawn down in stages and not paid as a lump sum. The draw downs enable the builder of a home to finance the various stages of the construction process, from the acquisition of land to the various stages of building.
Contractors and the self-employed don’t always have the same financial structure or income patterns as PAYG earners, this means you may need the flexibility and convenience of our lo doc home loans. The greatest benefit to these types of loans is they provide non-traditional income earners, with an irregular inflow of money, the opportunity to easily get into the home ownership market, or to take out a loan to upgrade. You are able to self-certify income for the loan approval application, rather than providing full financial details to the lender. This will give you faster access to your loan plus greater flexibility without needing to go through your accountant.
A 100% Offset home loan is a home loan that comes with a linked bank account which is called an offset account. This offset account operates very much the same as a normal bank account, with one difference, the balance of the account reduces the amount of interest you pay on the linked home loan. Basically, when interest is calculated on the home loan, the balance of the offset account is deducted from the balance of the home loan to determine the amount of interest payable. As an example, if you have a home loan owing $300,000, and you have $25,000 in your offset account, the interest will be calculated as if you owed only $275,000. The effect is the same as if you had deposited the $25,000 directly into the loan itself. Interest is calculated on a daily basis. An All-in-One Home loan operates on the same principle, with the difference being that the offset account and home loan are merged into one single account. Your salary can be deposited directly into your Home Loan account.