Who we use
There are many different types of home lenders. Each has different interest rates, terms, conditions and lending criteria. The most common types of lenders are outlined below.
Banks have the primary share of the owner occupied home loan market in Australia. Banks can provide their customers with integrated banking packages (e.g.. lending products, financial services, transaction and savings accounts). Banks lend funds for housing up to a 30-year term. The deposit required can vary from 5% to 25%.
Building societies are cooperative organizations whose members are shareholders. Building societies are often referred to as mutual societies.Building societies operate in much the same manner as banks, offering integrated financial services (e.g.. home loans, saving accounts, cheque accounts, credit card access and financial planning and investment services).
Most credit unions lend funds for housing to members. Credit unions can be a good source of finance when additional funds are required.
Mortgage managers organize funding for homebuyers from a variety of funding sources. The owner of the mortgage is not the mortgage manager but the provider of the funds, who operates through a trustee.
Mortgage brokers act as agents between borrowers and prospective lenders. The task of the mortgage broker is to find and arrange the most suitable loan for the borrower. They do not lend money or manage loans.
Cooperative housing societies
Cooperative housing societies provide housing loans predominantly to low-to-moderate income earners. Customers of cooperative housing societies become members of the society by purchasing a share.
Housing loans are sometimes available to people who contribute to certain superannuation schemes. Borrowers usually must meet membership and/or qualifying criteria.
Some solicitors have clients' funds available for housing loans. Normally, these loans are for two or three years only and, at the end of this time, finance has to be obtained from another source. These loans can often be 'rolled over' for another set period of time before the loan has to be repaid. Interest only is paid on these loans, meaning the amount borrowed is not reduced.
Loans from finance companies have higher interest rates than from other lenders so they are generally not suitable as first mortgage housing loans.
Sometimes the vendor (the seller) is prepared to lend part of the purchase funds to the buyer, usually over a two-or three-year term. Interest only is paid, meaning the amount borrowed is not reduced. At the end of the term, finance has to be obtained from another source.
Some of the lenders we work with