Principal & Interest loans require you to pay down your loan amount as well as pay any interest charges applicable. Interest only loans only require you to pay the ongoing interest charges, whilst not paying off the loan amount. This is generally used by Investors who rely on ‘Capital Gains’ to earn their profit and is also associated with tax minimisation strategies.
An owner-occupied property is one that the owner lives in, whereas and investment property is any additional properties that the owner rents out for investment purposes.
An offset accounts allows you to be able to use any money you have in that account to reduce the loan amount that you are charged interest on. This means that you can put extra cash towards your home loan, whilst still allowing you to access it if required.
A pre-approval means that you have been conditionally approved for your finance prior to putting an offer on a property. This enables you to know exactly how much you can borrow and also speeds up the process once you have had an offer accepted. This is beneficial in a number of scenarios – including Auctions..
  • You can choose to have a variable or a fixed interest rate applicable to your home loan. You can also split your loan into both variable and fixed portions. The positives of fixing rates are: it protects you from interest rate rises and enables you to know exactly what your repayments are going to be for the fixed period assisting in budgeting. The negatives to fixing rates are that your fixed rate will not decrease with decreases in interest rates, you generally cannot make extra repayments on the fixed portion and if for some reason you need to get out of a fixed rate it can be quite expensive. Empowered Finance can provide professional advice and comparisons to assist you in making this decision.
At Empowered Finance we do not charge fees – ever! We get paid via commission from the lender you end up choosing. This means that there is no cost to you. Some brokers do charge a fee so make sure you confirm this prior.
Getting a loan if you are self employed is generally more complex than PAYG clients but is definitely doable. Different lenders have different documentation requirements so selecting the correct one is crucial. There are a few lenders that specialise in self employed loans.