Home

    Types of products we offer -  
  Standard variableLine of credit 
 Basic variableBridging (home to home) 
  Introductory (honeymoon) Split rate  
 Fixed rateAll in one/offset 
 Interest In Advance LoansProfessional Packages 
 Low Doc LoansCredited Impaired Products 
This is the most common loan in Australia. As the name implies the interest rate may vary either up or down over the period of the loan.They also tend to be the most flexible type of home loans with extras such as redraw, offset and the ability to make additional repayments readily available.
Benefits
If interest rates fall so should your repayments.
Probably the most flexible of all home loans allowing you to redraw funds, make additional repayments and offset credit balances against your loan balance.
These extras may reduce the amount of interest you have to pay meaning you may be able to repay your loan faster.
Considerations
If interest rates rise so will your loan repayments.
Make sure you require the added benefits as lower interest rates are available if you don't need them.
Try our Calculator to see what difference it may make to you.
This is a no frills version of the Standard Variable Rate Loan. Basically the extras offered under the Standard Variable Rate Loan are removed thereby allowing the lender to reduce the interest rate charged. The less features the cheaper the rate! It is ideally suited to customers who do not have any surplus cash flow.
Benefits
If you are not going to use the features of the Standard Variable why pay for them?
Considerations
If interest rates rise so will your loan repayments.
These are commonly promoted by lenders to attract interest rate sensitive customers. They generally offer a guaranteed low interest rate for a set period of time after which the interest rate will revert to the Standard Variable Rate.
Benefits
As the interest rate is lower for the introductory period, so are your initial repayments.
Considerations
Your repayments will most likely increase once the introductory period is over.
You need to assess your overall position as introductory loans can often end up more expensive in the long run than other products.
As the name implies you fix in a rate on your loan which cannot change for the agreed term, usually 1 to 10 years. These loans are ideal for customers who want the security of knowing that their loan repayments will not increase during the term they have chosen. They are especially popular with investors seeking to fix in the cost of their investment.

Fixed rate loan repayments can either be Principal and Interest or Interest Only. Interest Only loans tend to be used by investors where the ability to calculate future interest can assist with taxation planning.

Benefits
Allows you to fix in the cost of maintaining your loan. In other words you know the cost of your repayments for the life of the loan.
If the variable interest rate increases you can smile because yours won't!
Considerations
Fixed loans tend not to be as flexible as variable rate loans. For instance you may not be able to make additional payments, redraw or offset credit balances.
If the variable interest rate falls yours won't.
You may be up for early repayment penalties if you wish to repay, refinance or switch to a variable rate before maturity.
Idea
If you are concerned about this why not consider a split loan facility where you maintain a portion on variable and fix in the rest.
A Line of Credit is an ongoing source of low cost finance that is secured against the equity that you have in your home. It is similar to an overdraft facility in that funds can be withdrawn up to a certain limit with no principal repayment deadlines.

Lines of credit are generally used for investment purposes; i.e. as equity for an additional property investment or for investment in shares or managed funds.

Benefits
You can use the funds as and when they are required and only pay interest on the outstanding balance.
Considerations
You need to be budget conscious to operate this type of loan. If you are unable to budget or have a tendency to spend any money available then this may not be the loan for you.
If you have enough equity in your current home, we can arrange for a Bridging Loan. These loans enable you to buy your new home now and sell your current home later. The good news is these loans can be arranged at Standard Variable rates.
These loans work by enabling you to split the loan two ways; i.e. a portion is locked into a fixed rate for a fixed term and the balance is charged at the variable rate. It is an excellent way of reducing the effects of interest rate movements; if the variable rate falls, you benefit from the fall on your variable rate portion; if they increase, you benefit from your Fixed Rate portion which will not increase.
Benefits
Creates a sense of interest rate stability.
The variable portion can give you flexibility such as redraw, offset and the ability to make extra repayments.
Considerations
If interest rates rise your variable rate and therefore your payments will still increase.
If interest rates fall you will still be paying interest on your fixed rate loan at he original rate.
An All-in-One Loan allows you to repay extra amounts off your loan and "redraw" them when you really need them. The benefit is that if you make additional repayments above the minimum required your loan balance will fall and so will your interest payments. The Loan operates like a normal cheque account with salaries etc being credited to the account and funds withdrawn via cheque book, ATM or Eftpos as per usual.

Some lenders do not have All-in-One accounts but instead operate Offset accounts. This is a stand-alone credit account that acts as your day-to-day transaction account. The outstanding balance on the account is "offset" against your mortgage and you only pay interest on the net amount. Most Offset accounts provide a 100% offset but you should confirm this before entering into any deal.

Benefits
Best value for money as credit balances (or deposits) will reduce the balance on which you pay interest. Whist repayments won't decrease you will be paying your loan off sooner.
Operates like a normal bank transaction account.
Considerations
Interest rates may be slightly higher due to the offset feature. Ensure the offset will be of greater benefit to you than the higher interest cost.
Check the terms under which the Offset works - i.e. do you have to keep a minimum balance in the account.
Traditionally taken out at the end of the financial year, these are fixed rate loans that allow the customer to pay all their interest for the next financial year in advance. This allows them to claim any available tax deduction in the current financial year. As the tax deduction is the only reason for paying interest in advance they are therefore provided only on investment loans.
Benefits
Tax effective
Discount provided on interest rate because of pre-payment
Considerations
Talk to your financial planner to see if this is an effective strategy for you
Many lenders provide interest rate and /or fee discounts for customers they describe as “professional”. Some lenders use income as the determinant whilst others use the amount the client is borrowing. Whatever the case these products can provide customers with up to 0.7% off the standard rates as well as providing other benefits to do with credit cards or insurance etc.
These loans are predominantly for the self employed who are unable to substantiate their income for traditional loan products. They are called “low docs” because the applicant is only required to supply the lender with a declaration (which come in different forms) that they can afford the repayments. These loans are often restricted by LVR and the maximum loan amount. They are usually slightly more expensive than traditional loans due to the higher risk profile.
There are a number of lenders who specialise in providing loans to individuals who have a history of defaults or judgements. They are sometimes called lenders of “last resort”. They are also called “dry cleaners” as their intention is to provide credit to individuals who would otherwise not be able to borrow, get them back on track, so that in a couple of years they are able to re-enter the mainstream mortgage market. The interest rates charged are significantly higher due to the increased risk with the actual rate dependent upon the applicant’s credit rating.
Your Mortgage Force Consultant can help you with any of these products and assist in determining which is the most suitable alternative for you.