When choosing a home loan it is extremely
important that you choose a product that suits
your immediate and future needs. North West Finance
understands these needs and can help in the selection
of a loan that will most suit them.
'Basic Type' Home Loan
These Products are generally offered by most financial
institutions and provide a basic line of features
with a reduced interest rate. They are very popular
and provide a great alternative to borrowers that
don't require all the 'bells and whistles' that the
'standard' products provide.
'Standard Variable' Home Loan
Most Financial institutions offer this
product as their 'main stream' home loan. The
standard variable home loan offers flexibility
and is generally better featured than a basic
product. This loan can also be mixed with other
types of products to form a combination loan,
such as part fixed and part variable. The standard
variable portion offers many attractive features
such as salary crediting, redraw facilities, off-set
accounts, additional repayments, top ups, construction
loans and fixed rate options.
'Fixed Rate' Home Loan
Fixed rate loans offer security to borrowers
in the event of interest rate rises. They can
also hold you at a higher rate should interest
rates fall. Taking a fixed rate option requires
a lot of thought and really does depend on each
individual's circumstances. Some people, due to
employment situations, family constrains, or higher
level of financial commitment require stability
in their loan repayments for the future. Taking
a 'Fixed Rate' home loan can provide some 'peace
of mind' to borrowers.
On the down side taking a fixed rate
loan can mean that you may be paying a higher
rate than the current variable rate. Additional
payments to your loan are usually not allowed
during the fixed rate term, so this type of loan
is very inflexible.
It has become very popular to fix a
part of your loan and create a 'combo loan' with
a variable rate product. This gives some security
for part of your loan and allows you the flexibility
on the variable portion.
'Line of Credit' Facility
A Line of Credit is a revolving facility
that allows the borrowers to reuse the facility
at any time, once it has been repaid. The borrowers
can use any repaid funds right up to the original
loan amount. The concept is not unlike a credit
card, where your may repay and reuse any fund
right up to the approved credit limit. This type
of loan is very popular for the borrower that
may require funds for future use such as investments,
home renovations or wealth creation programs.
'All in One' Loans
It has become popular for borrowers to
use their home loan as their everyday bank account
and have income paid directly into the loan. This
type of loan is flexible enough to allow the borrower
to withdraw surplus funds as required so that
their money is making use of reducing interest
charges for the time that it is held in the loan
account. Again, borrowers opting for this type
of loan need to be comfortable and fully understand
this concept to gain the real benefit of this
facility.
Personal Vehicle loan
- For a car that is predominately for personal
use and you want to own the vehicle outright.
- All on road costs, registration and insurance
costs can be financed.
- Terms range from 1 - 5 years.
- You can pay monthly or fortnightly.
- Interest rates are fixed which means you are
protected against interest rate fluctuations.
- You can pay by direct debit, which means you
do not need to worry about making payments
as they come directly from your account.
Motor Vehicle Novated Lease
- A Novated Lease allows you to choose the car
you want to drive for work not the car work
wish you to drive. You can take the car with
you to your next job.
- Your employer will pay your payments as negotiated
in your salary package.
- All on road costs and registration can be
financed.
- Fixed Monthly payments.
- It may be tax effective for fringe benefits
tax and income tax.
Motor Vehicle Asset Purchase
- This is also known as Hire Purchase and Term
Purchase. It is for people who use their car
for business.
- All on road costs, registration costs and
insurance can be financed. This will increase
your cash flow by minimising your monthly
payments and all business related expenses
are tax deductible.
- Fixed monthly payments mean as interest rates
fluctuate your monthly payments stay the same.
- You own the asset at the end of the term,
and the payments are flexible to suit your
cash flow.
Motor Vehicle Finance Lease
- For a car that is used for business and you
want the flexibility of lower monthly payments
with the option to upgrade the car at the
end of the loan contract.
- All on road costs and registration can be
financed.
- Fixed monthly payments mean as interest rates
fluctuate your monthly payments stay the same.
And because of the residual, monthly repayments
are lower.
- Business use of your car may be claimed against
your taxable income.
- At the end of the lease you have the option
to upgrade the car, extend the lease for a
further period or another person can purchase
the vehicle.
Chattel Mortgage
- This product may be of benefit to business
customers who utilise a cash accounting system.
The ITC may be claimed up front via the BAS
(business activity statement) rather than
over the life of the loan.
- All on road costs, registration costs and
insurance can be financed.
- Fixed monthly payments.
- Business related expenses are tax deductible.
