FINANCE

At Finance Edge, we offer a comprehensive range of products and services to assist you with all of your lending requirements. Accredited with nearly 20 lending institutions, we offer you a choice of products that you just won’t find at your local bank. And with so many options available, we use our experience and expertise to make things easy for you by recommending suitable loan options and ultimately help you select the best loan product for your needs.

To ensure we offer you the most suitable loan products, we conduct a Client Needs Analysis which allows us to capture vital information about your individual circumstances, current financial position and examine what loan features are important to you. We also determine whether you have sufficient equity in property or cash and income to support your existing debts and your new loan proposal. Once completed, we complete a Preliminary Assessment on the selected loan options to determine whether these products are suitable for your needs. Finally a choice of products are made where we guide you through the application process to make things easier for you.

SERVICES

At Finance Edge, we provide a comprehensive range of services to assist you with your lending needs. Whether you’re looking to purchase a new home, review your existing lending or to borrow additional funds, we’re here to help. We advise on a range of subjects, such as the merits of cross-collateralization versus stand-alone loans for property investors, and show how parents can help their children with equity to purchase their first home. We always examine your current position to ensure that you are paying competitive interest rates and low fees, but to also ensure that your finances are structured appropriately to suit your future plans.

Our services include:

At Finance Edge, we pride ourselves on being the Specialists in Home and Investment Finance. As well as assisting home buyers, Finance Edge specialises in helping property investors grow their property portfolios through our simple philosophy. We listen to what our clients want and we show them how we can help them achieve their goals with sound advice on loan structuring and product choice.

Do you know if you’re paying a competitive interest rate on your home loans? If you’re not sure then why not speak to one of our loan consultants for a Free Finance Heath Check. We will examine your finances to see whether a Refinance can benefit you. We have access to hundreds of loan products from nearly 20 lending institutions. Why pay the banks more than you could be? Find out now whether Refinancing could be the answer for you.

Are you looking to purchase your first home and are eligible for the First Home Owners Grant? If so then you may be entitled to a one-off $15,000 grant and nil stamp duty for brand new properties up to $750 000, providing that you meet the FHOG’s eligibility criteria. Click here for up to date information on eligibility and to download the latest FHOG application form. There are a number of lending options out there that could suit your needs so speak to us at Finance Edge so we can show you how easy it can be to buy your first home.

If you’re curently searching for a new home or an investment property, it is advisable to apply for a Pre Approval. A Pre Approval can provide you with certainty when shopping for your property and also gives the real estate agent more confidence when dealing with your offer. Pre approvals also make it easier to meet the finance approval deadline which can creep us quite quickly. Speak to one of our loan consultants for more information on how we can help you obtain a Pre Approval through a suitable lender.

Do you currently have a personal loan or credit card debts that are weighing you down with high interest repayments? Why not look to consolidate these debts into your home loan to reduce your monthly interest payments. Speak to us to see whether Debt Consolidation could be suitable for you.

Are you looking to complete the purchase of a new property without having sold your existing property? Well if so, then Bridging Finance could be the answer. If you have any questions on Bridging Finance, then speak to one of our loan consultants to see if Bridging Finance could be suitable for you.

One of the Free services that we offer is that we can perform a Finance Health Check to make sure that your loans are suitably structured for what you want to achieve and importantly to ensure that you are not paying any more than you should on your home loans. We examine your current debts and see if we could improve your position by perhaps looking at debt consolidation, refinancing or restructuring to suit your needs. Speak to one of our loan consultants for a Free Finance Health Check.

At Finance Edge, we can help determine your Maximum Borrowing Capacity, in other words how much you are able to borrow based on your particular circumstances. When financial institutions lend money, the maximum amount they will lend you is mainly based on a combination of two factors. Firstly you must have sufficient equity in the form of either cash or equity in existing property and secondly you must be able to service both your existing and proposed loan commitments. If you would like us to determine your Maximum Borrowing Capacity, please speak to one of our loan consultants today.

Are looking to build your dream home or perhaps build that investment property that you’ve always wanted to? If so then speak to us at Finance Edge so we can explain to you what is involved in establishing a new construction loan. If you’re buying a house and land package then we can show you alternative ways of establishing the loan. We have access to a variety of construction loan products to suit your needs.

If you’re over 63 yrs of age and are looking for some extra funds to improve your lifestyle, then a Reverse Mortgage could well be worth considering. With a Reverse Mortgage, you can use the equity in your home to borrow money either as a lump sum payment, as a regular income stream or perhaps even a combination of both. A Reverse Mortgage is not like a traditional home loan as you do not need to make loan repayments while you’re still living in your home. The interest charges are simply capitalised onto the loan. The loan would only need to be repaid in the event that you sell your home, if you move into permanent aged care or if you pass away. Did you know that not all mortgage brokers are able to provide assistance to clients with Reverse Mortgages? Finance Edge’s Galvin Dawson is a SEQUAL accredited loan consultant and is fully qualified to provide you with any information you need to consider taking out a Reverse Mortgage.

PRODUCTS

With access to nearly 20 lenders, there are hundreds of loan products to choose from including Basic loans, Professional Packages, Introductory rate loans or Fixed rate loans all with the option of either Principal and Interest or Interest Only loan repayments. And then there are Line of credits and Reverse Mortgages. And for those who may not have completed their tax returns or may have had financial difficulties, there are Lo Doc and Non-conforming loans on offer. We also have access to Commercial and Business loan products. Through our trusted referral partners, we also have access to Equipment finance, leasing and Personal finance.

Our loan products include:

A Basic Home loan is a no frills product with a low interest rate, usually no ongoing costs and sometimes an application fee. This product is suitable for those clients who don’t require the bells and whistles of professional packaged loans but just want a good interest rate and no ongoing fees. Basic loans will usually have provision for redraw, however some lenders will charge extra for this service.

Lines of credit can best be compared to credit cards, although unlike credit cards they are secured by residential property. Like a credit card, you can draw money up to the limit and you only pay interest on what money has been drawn. Lines of credit can provide a flexible alternative to a home loan for disciplined borrowers, can be used for purchasing shares or can be used as a cash flow management tool. Speak to us to see whether a Line of Credit could be suitable for you.

A Professional Package usually provides you with a discount off the standard variable rate (and sometimes also on fixed rates), will give you flexibility by allowing free product switching, 100% offset, redraw among a host of other options. Sometimes credit cards and transaction accounts may be integrated into the package which often waives their individual monthly fees. Usually the lender will charge an annual fee between $300-$400 pa for the package. These packages are great for property investors who have multiple loans as it can save you money on application fees and monthly account keeping fees.

What is a Deposit Bond?

In Australia when a person or entity enters into a contract to purchase residential property, it is common practice for the purchaser to lodge a cash deposit of up to 10% of the purchase price with the vendor’s solicitor as security for the purchaser’s obligations. The deposit gives the vendor (the seller) a fund against which they can claim if you fail to complete the transaction.

A Deposit Bond is an instrument that, by agreement with the vendor, can replace the need for a cash deposit. It is a convenient way of purchasing a property without the need to arrange a large cash deposit or immediately cashing in or selling an investment that may mature at some point in the future. The Deposit Bond is issued by an insurer to the vendor for all or part of the deposit required.

If the purchaser fails to complete the purchase of the property and has used a Deposit Bond, the vendor or the holder of the Deposit Bond has the right to present the Deposit Bond to the Insurer and claim the full amount of the Deposit Bond. The Insurer will then seek reimbursement from the purchaser for any monies paid by it plus any other costs and expenses.

In essence, a Deposit Bond enables the purchaser to defer until settlement of their 10% deposit.

A Deposit Bond is NOT a policy of insurance. It is a form of surety or guarantee.

Why are Deposit Bonds so popular?

A Deposit Bond can be a quick and efficient way of arranging the deposit for the purchase of a residential property. Arranging a cash deposit may take time, especially if the purchaser has not sold their current property or needs to sell investments to raise the required deposit.

Deposit Bonds enable purchasers, whether they be investors or otherwise, to avail themselves of opportunities as and when they arise.

Who can use a Deposit Bond

The product is suitable for virtually anyone contemplating the purchase of a residential property including:
(i) future home buyers;
(ii) home owners upgrading to a new property;
(iii) investors wishing to purchase property or additional properties;
(iv) owners or investors wishing to purchase properties off the plan.

The product is especially convenient for investors who may have funds tied up in non-liquid assets and who wish to purchase properties when opportunities arise. Finding the 5% or 10% required to enter into a contract on another property may be difficult when investment opportunities arise at short notice. Arranging bank finance or short-term loans may take time and associated costs may be high.

In addition, Deposit Bonds are extremely convenient for older couples who are looking to purchase a property off the plan now in anticipation of having to settle the transaction in one or two years time when the project is due for completion. The preferred option for people in this situation is to sell their house, say six months before settlement is due, however having to raise a large deposit at the present time when contracts have to be exchanged may create an unnecessary financial burden for them. The Deposit Bond allows such purchasers to enter into the transaction and retain their current property until it is more convenient to sell the property and settle the future purchase.

Will Vendors accept Deposit Bonds?

There should be no reason why a vendor should not accept a Deposit Bond in lieu of a Cash Deposit. However, most “Standard” Contracts for Sale provide for a cash deposit to be paid.

Therefore, before you agree to purchase a property (or bid at an auction) check with the vendor that they will accept a Deposit Bond instead of a cash deposit. You should also ensure that your solicitor or legal representative inserts the relevant clauses into the Contract for Sale to enable the Deposit Bond to replace the cash deposit.

Does a Deposit Bond replace the deposit?

NO. A deposit bond is a guarantee that the deposit will be paid at a future date. Deposit bonds are underwritten by an insurer that guarantees the vendor that the deposit will be paid in full at settlement. The purchaser is still required to pay the deposit in full. The deposit bond saves the purchaser from the need to pay the full deposit in cash when signing a contract to purchase. This means that purchasers can keep their cash and may negate the need to break investments, sell shares or arrange loans to pay the deposit now.

How long can a deposit bond be arranged for?

Deposit bonds are split into two types:

Short term bonds for three and six month periods; these are ideal for purchasers buying at auction.

Long term bonds which are generally issued for periods of twelve months through to thirty six months (some bonds are issued for periods longer than this, up to 48 months); These are generally issued for properties which are yet to be built or where completion is some time in the future, typically, “off the plan” projects.

When does the Deposit Bond terminate?

The Deposit Bond expires on the earliest of:

(i) the contract for Sale being completed;
(ii) the Expiry Date;
(iii) the Contract for Sale being terminated or rescinded and the purchaser being entitled to a refund of the deposit;
(iv) payment to the Vendor by the Insurer of The Maximum Bond Amount or such part as the vendor may require; and
(v) payment to the Vendor by th

What information is required for an application?

This varies depending on the bond term. However, typically a deposit bond can be arranged quite simply by submitting a simple application form and supporting documents.

Important Notes

The information given here is designed to give answers to the basic questions. More detailed information is available on request. IT IS NOT INTENDED TO PROVIDE A COMPREHENSIVE OUTLINE OF THE PRODUCT OR OF THE OBLIGATIONS AND TERMS OR CONDITIONS

Lo Doc loans are designed for the self employed borrowers who either haven’t prepared and submitted their latest tax returns or they simply cannot produce them. In the past, borrowers could simply self certify their estimated taxable income however with recent tightening of financing legislation, additional evidence must now be provided to support the stated income declaration. Business Activity Statements (BAS) or an accountants letter must be provided to support the income declaration.

If you’re over 63 yrs of age and are looking for some extra funds to improve your lifestyle, then a Reverse Mortgage could well be worth considering. With a Reverse Mortgage, you can use the equity in your home to borrow money either as a lump sum payment, as a regular income stream or perhaps even a combination of both. A Reverse Mortgage is not like a traditional home loan as you do not need to make loan repayments while you’re still living in your home. The interest charges are simply capitalised onto the loan. The loan would only need to be repaid in the event that you sell your home, if you move into permanent aged care or if you pass away. Did you know that not all mortgage brokers are able to provide assistance to clients with Reverse Mortgages? Finance Edge’s Galvin Dawson is a SEQUAL accredited loan consultant and is fully qualified to provide you with any information you need to consider taking out a Reverse Mortgage.

Intro Rate loans are loans where you receive a large discount of the standard variable rate for a period of time (usually a year) and after the period finishes then your rate will either revert back to the standard variable rate or to a less discounted rate for the remainder of the loan. Be aware that some lenders may penalise you if you repay or refinance your loan during or shortly after you enjoyed the Intro rate.

Non conforming loans are designed for those borrowers who may have previously experience some financial difficulties. These clients may have either been bankrupt, or have had defaults or court writs that appear on their credit file. Your existing bank may have said ‘no’ to your proposal but speak to one of our loan consultants for a second opinion as we have access to many non conforming loan products that may be suitable for you.

We have access to Business and Commercial loans

We have access to Vehicle and Equipment finance