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Home Loans

Home Loans are by no means ‘one size fits all.’ Different loan types suit different age groups, different living situations and even different attitudes to money.

A common trap some home-owners fall into is to consider a mortgage ‘set and forget’. You did your research, shopped around, found the right option and now you’re reluctant to revisit the process – even if your personal circumstances have dramatically changed.

Before you start shopping around for a new loan, or an upgrade to your old loan, it’s worth knowing a little bit about the options available.

Contact us today for a no obligation chat to see how Tailored Options can help.

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Refinancing

Everyone wants to pay less on their mortgage, and refinancing is one strategy to help lower your interest rates – but is it worth it? We can help you to get the most out of refinancing.

Generally, people refinance to negotiate a better deal on their home loan and pay it off sooner. Depending on your situation, you should be able to save money by taking advantage of lower interest rates, or new products that weren’t available when you first negotiated your home loan.

Take advantage of your refinanced loan by:

Consolidating debts: Home loan interest rates are often lower than those for other forms of credit, so you can save money by consolidating debts such as credit cards or personal loans into your mortgage. Beware, however: paying off a short-term loan over a longer period will likely incur extra interest and fees over the longer term. Put the money saved from consolidating your debts into your mortgage, as if you were still repaying the other debts, to reduce the overall debt faster.

‘Splitting’ your loan: Nominate a portion to be charged at a fixed rate of interest for a set period of time, with the balance charged at a variable interest rate. When the fixed rate period ends, the loan reverts to the variable interest rate. You benefit from the security of the fixed rate and flexibility of a variable rate loan, and are impacted less if interest rates rise.

Having an offset account: The balance of your offset account is subtracted from the remaining principal amount before interest is applied, meaning you spend less on interest over the course of your loan.

Making extra repayments: Any payments made on top of your regular repayment will save money by reducing the amount of interest you’ll pay.

When should you consider refinancing?

Life brings change and your mortgage needs to keep up: maybe you now have a partner, a young family, a new job that pays more, or have become empty nesters with extra cash on your hands. If the terms of your current loan don’t allow you to pay more (or less) on your principal amount, it could be worth considering refinancing into a more flexible arrangement.

Refinancing or loan switching can save money, but you might incur costs such as exit and establishment fees, government charges and administrative or legal expenses. These costs need to be weighed against the benefits to determine if you’ll save in the long run.

Today’s home loan market is very competitive, and there might be a loan out there offering the features and flexibility you want. Before you make any decisions, however, be clear on your reasons for refinancing. It’s also a good idea to speak to an experienced mortgage broker or financial expert to ensure you’re making the right move for your financial situation.

Contact us today for a no obligation chat to see how Tailored Options can help.

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Commercial Loans

Commercial finance is an umbrella term for different kinds of business loans. They’re designed to help manage your capital and cash flow.

Types of commercial finance

Business overdraft: Your financial institution allows you to overdraw your existing business account up to an approved limit. You can only access the overdraft after your own funds have been used. The lender charges interest on the overdrawn amount.

Line of credit: A long-term arrangement between a business and a lender, where the business can access funds up to an approved limit. The business may borrow all or part of the money at any time, but only owes interest and makes repayments on the amount used.

Term loans: A business borrows money and repays the lender in set amounts over a set period. Good for businesses that like predictable repayments.

Commercial rate loans: Also known as business markets loans. A business borrows a single loan amount, which can be spread across a combination of components, such as floating rates, fixed rates and cap rates. This helps to protect against interest rate movements.

Cash flow finance: A way for a business to get cash before their customers actually pay.

Invoice discounting is where a business accesses a percentage of their debtors’ unpaid invoices through their lender, and the lender uses the debtors as security.

Invoice factoring is where the lender assumes responsibility of the business’s debt ledger and chases payments on its behalf.

Both attract a fee and are designed to service the cash flow gap between outgoings and income.

Whether it’s cash flow or capital, businesses need money. It’s good to know there’s a loan to suit every business.

Contact us today for a no obligation chat to see how Tailored Options can help.

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Non Conforming

A non-conforming loan is a term used for loans that in most cases won't fit with a major banks lending criteria.

Borrowers can be deemed as ‘non-conforming’ due to a variety of circumstances, a non-conforming loan can potentially suit applicants with the following:

• Impaired credit history.
• Previously bankrupt.
• Self employed.
• Short term employment history.
• Tax debt.
• Debt consolidation(including business debt).

Contact us today for a no obligation chat to see how Tailored Options can help.

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Vehicle Finance

With access to a variety of lenders and products, whether it's for business or personal use, Tailored Options can help with the following vehicle finance:

• Car loans
• Truck Loans
• Van Loans
• Utility Loans
• Commercial vehicle loans

Contact us today for a no obligation chat to see how Tailored Options can help.

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Equipment Finance

Asset finance includes a range of different loan structures that can help your business buy vehicles or equipment.

Types of asset finance

Chattel mortgage: Also known as an equipment loan. A business borrows money to purchase an asset. The business owns the asset outright, but the lender uses the asset as security until the business repays the loan. This frees capital and ensures the business has security against the loan.

Hire purchase: The lender purchases the equipment and rents it to the business. At the end of the term, assuming all payments are made, the business takes ownership of the asset. This is a popular way to spread the cost.

Finance lease: The lender owns the equipment and the business pays a hire fee for use. In some cases, the business may be able to purchase or refinance the asset at the end of the set term, which gives flexibility.

Operating lease: The lender owns the equipment and the business pays a hire fee for use. The business does not take ownership of the asset. The costs are deemed operational expenses.

Novated lease: A Novated Lease involves a three-way agreement between an employer, an employee and a lender. The Novated arrangement involves the employee leasing the vehicle directly from the lender. The employer will then agree to deduct lease rentals from the employee’s salary during the term of employment and to pay the rentals directly to the lender. The employee has the use of the vehicle for personal purposes.

Contact us today for a no obligation chat to see how Tailored Options can help.