 choice
of loans ...
MOSAIC mortgages
At Mosaic Mortgages our simple and flexible approach will help you
choose a loan with the features and benefits you need. There is always a
real person you can talk to that will design the right loan package that
you will be happy with for years to come.
Contact us any time to discuss one of the following loan types and let
us help you on your way to a successful loan approval.
Standard Variable Loan
A fully featured loan that allows such
benefits as;
- An offset facility,
- Redraw option,
- No limits on additional
repayments,
- No early payout fees,
- Interest only repayment options.
The interest rate is subject to market forces and determined by the
Reserve Bank.
Basic Variable Loan
Basic variable rate loans are sometimes referred to as a “no frills”
loan option. It is similar to a standard variable rate loan without some
of the features. The interest rate is typically lower than the standard
variable rate loan making them attractive to the budget conscious
borrower wanting a lower variable rate. The ability to make extra
repayments and redraw these payments remains as two important benefits.
Discounted Variable Rate Loan
Commonly known as introductory or honeymoon loans. A discounted variable
rate gives the customer a special reduced rate for an initial period of
the loan term. (Usually 12 months). After the initial period the
interest rate will revert to the standard variable rate. The benefit of
this loan type is that repayments are lower for the discounted period
which can give some relief in the early periods of homeownership when
there may be extra costs associated with setting up your home.
Revolving Line of Credit
A line of credit allows you to borrow up to an approved credit limit
using the equity in a residential property. You can repay and redraw
funds as you require up to the limit. You will only pay interest on the
money you owe.
Fixed Rate Loans
Fixed rate loans allow the borrower to lock in an interest rate for a
specific period of time, normally between 1-5 years. For borrowers
wanting to protect themselves against possible interest rate rises then
a fixed interest rate loan may be the right option as their repayment
will not change for the fixed rate period. Some lenders may impose a
penalty if you make extra repayments or pay the loan out in full before
the expiry of the fixed term. Your Mosaic Mortgages consultant will
advise you on the policies of the various lenders.
LOAN FEATURES
Redraw
When a borrower makes extra or additional repayments to their home loan
some lenders will allow them to access these funds in the future. This
allows borrowers to make extra repayments to reduce the overall term of
their loan with the comfort of knowing they can get the money back for
any purpose. There are normally minimum amounts that you can redraw and
some times a fee is charges depending on the lenders.
Offset Account
A mortgage offset account gives you the features of a normal transaction
account; however no interest is paid on the amount of money in the
account. Instead when calculating the interest on your mortgage loan the
balance of the offset account is deducted from the loan balance. For
example if the balance of your home loan is $150000 and you have $10000
in your offset account you will be only charged interest on $140000.You
should refer to your financial planner or accountant to explore the
advantages of a mortgage offset account.
Interest Only
Interest only loans require no
principal repayments to be made during the interest only period. The
maximum term is generally 5 years. Interest only loans are an ideal loan
for investors seeking to maximise their taxation benefits.
Bridging Finance
Bridging loans are available to
assist people who wish to purchase a new home and sell their current
home at a later date. Mosaic Mortgages has access to lenders that will
qualify your repayment capacity on the residual debt. The interest
payments can be added to the loan for periods of up to six months. It is
important you talk to us first to guide you through the feasibility of
this type of loan feature.
Interest In advance
After seeking the proper
financial advice some borrowers may opt to pay the interest on their
loan in advance. Depending on their own circumstances it may have the
effect of reducing their income in the current financial year and there
by offering some tax advantages. You should seek proper financial advice
before deciding on this loan package.
Professional Packages
Many lenders provide discounts
to borrowers who have loan requirements in excess of $150000 and who are
prepared to accept a total banking package with the one bank including
the home loan, savings account and credit card. The lender usually
offers interest rate discounts, fee savings on valuations, transaction
costs and other benefits such as discounts on insurance.
Low Document Loans
Low documentation loans are
predominantly for self employed borrowers who for what ever reason
cannot verify their income. They are called “lo docs” because the
borrower only has to complete a declaration that they can meet the loan
repayments and are fully aware of the financial risks involved. The
lender offsets the risk involved by seeking a larger deposit. It is a
very competitive market for this type of product and interest rates can
be similar to the standard range for some lenders.
Split Loans
A split loan is available for
borrowers who want to avail of multiple loan features that may not be
available in a single product. For example a borrower may wish to take
advantage of a fixed rate for a portion of their loan and leave the
balance on a variable rate which would allow greater flexibility.
MOSAIC mortgages
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