Property Finance

Construction Loan Finance

A construction loan applies when you are substantially renovating, building, knocking down and rebuilding or even adding additional rooms. A construction loan draws down on the funds progressively at stages that the construction is completed. This might be foundation, framing, completion etc. The largest benefit of this is you are only making repayments based on the amount that the loan has been currently drawn on. Therefore if you were renting a house until the property is completed; living expenses are more manageable as you are not paying rent and full mortgage repayments at the same time until such time the mortgage is fully drawn down.

Refinancing

Refinancing your mortgage allows you to contractually change the specifics of your current home loan. There are many reasons of which you might want to refinance; such as debt consolidation, lower your fixed interest rate or even to free up some capital in the equity of your property. It is important to speak to the right advisor when refinancing your mortgage to find the right product that suits you and your specific needs.

First Home Buyer

Taking that first step to buy a house is one of the biggest decisions you will make financially. You need to be sure the purchase that you make is right for you as it is not a short term commitment; it realistically is the next 30 years of your life.  As a first home buyer you are eligible for a Government Grant. This varies on which state you are buying in but is between $5,000 and $25,000. There are purchase price caps in place and again; varies on the state you are buying or building in.

Investment Property Finance

As a home buyer you are already aware and used to the long term commitment of a home loan, so adapting to the weekly payments of any out of pocket expenses after the rental income may very well come as second nature to you. Many Australians are investing their futures in property and benefiting from a rental return. Investing in property and renting it out assists with the mortgage repayments and with any luck; in the future the value of the property makes an equitable profit.

Commercial Property Finance

Commercial investing is different to that of residential investing. Commercial properties are generally warehouses, retail shops, factories or car parks etc. Commercial investment properties are deemed to be a higher risk; in which case the rental return is generally a lot greater.  A key attribute to commercial property leasing is the fact that the lessee pays the property maintenance and rates in addition to the rent. Be sure to have this specified within the lease agreement. Although there are many attractive features of a commercial investment property; getting into this kind of investment generally requires the borrower to have a larger deposit roughly around 30% or equity in your current property based on individual merit. The same guidelines are required if the property were to be owner occupied. Affordability and feasibility should be discussed with your accountant.

Home Buyer

Being a next home buyer; you know the processes involved to get into the property. Having been through it once you know what to expect from acceptance of offer, finance and documenting through to picking up the keys! Having already established lending history and asset backed; getting into that next house just makes it that much easier. Generally you do one of two things, sell the home you’re in to get into the next or; use the equity in your current property (if any) and take on a second property and rent out one of them.

To find out more, talk to Credit One - the smartest way to finance. 1300 CREDIT (1300 273 348)