Interest Rates change regularly and it is wise to check with Finance Here to obtain the latest rates. It is now a requirement for all Lenders to display a comparison rate against their calculation rate to give a potential borrower an idea of the real cost of their proposed loan over a five year period. Quite often a lender will include costs such as set-up fees, and legal fees into a loan which effectively increases the cost of the loan by a very small margin.
As lenders can change their criteria without notice, it is difficult to publish rates along with a comparison rate indicator. Rates shown below are an indication only and are the delivery rate published for our most competitive funders. A comparison rate chart from each lender will be provided upon request at the time your enquiry is made. Under the Uniform Credit Code (UCCC) the financier is obligated under the act to provide you a comparison rate of the particular product you are looking at prior to you proceeding with your decision to enter into a loan agreement. Finance Here will comply with this requirement. Due to the large number of lenders we represent, it is not possible to put every comparison chart on this web-site, as it will just become confusing. Therefore comparison rates will be provided upon request, or in the case of a UCCC application will be provided at time of application if applicable.
Disclaimer:- These rates are effective as of March 11th, 2008 , and should be confirmed with us as rates may change without notice to us and before we are able to amend our web-site. We therefore can not be held liable for any changes over which we have no control. However please remember these rates are our delivery rates, and depending upon which lender you choose, there maybe a minor variation so please ask us for a comparison rate chart.
Principal & Interest Loan
Full Disclosure Delivery Rate from: 8.77%
Lo-Doc Rate Delivery from: 9.12%
Fixed Rate Full Disclosure Loan Delivery Rate from: Please contact our Office
Fixed Rate Lo-Doc Loan Delivery Rate from: Please contact our Office
Interest Only Loan
Full Disclosure Delivery Rate from: 8.77%
Lo-Doc Rate Delivery from 9.12%
Fixed Rate Full Disclosure Loan Delivery Rate from:Please contact our Office
Fixed Rate Lo-Doc Loan Delivery Rate from: Please contact our Office
Line of Credit Loan
Full Disclosure Delivery Rate from:9.02%
Lo-Doc Delivery Rate from: 9.37%
Fix rate Interest not available with this product
We maybe able to shave more from the rates quoted above depending upon your Application Criteria, so you should call us or email us anyway and make sure.
Fixed Interest - v- Variable Interest
Fixed Interest Loans is where there is an agreement with the financier to lock the rate for a fixed period of time. This can be for one year or up to five years. There are several lenders who will do ten years, however, to fix a term for such a long length of time as this, is not in our view, recommended unless you are convinced of your long term strategies. The advantages of a fixed interest loan is that you know what your loan costs will not vary irrespective of what happens with the interest rates. From a budgeting perspective, this can have it's advantages. If the interest rate increases, your loan interest will remain unchanged. The disadvantage is that if the rate drops, you will still pay the previously agreed rate. In addition to this, consideration would need to be given to the potential "break costs" particularly if the rates have dropped below the current variable interest market rates, and you are wishing to exit the loan facility. We sight one case a number of years ago where we had a client that wanted to break a 10 year fixed loan facility they had with a major Australian trading Bank. Their cost to exit the loan four years into a Ten Year fixed rate facility was nearly $20,000.00 which in this client's case nearly 14% of the total loan facility......OUCH!!! This situation of course occurred in a falling interest rate market, which needs to be taken into consideration when considering facilities such as these.
Disadvantages are that apart from not being able to take advantage of lower rates, that if you wish to discharge prior to expiration of the contractual agreement, that you could incur a "break-cost", which depending upon the current market interest rate and time left to run under the contract, could be substantial. It is normally difficult to reduce the principal in large amounts without incurring a "break-cost". Any redraw facility that maybe available will not be at the fixed rate, rather at the going variable rate, and even then, the terms of the fixed interest contract may not even allow a re-draw facility. With an fix costs interest only loan, no principal reduction can be put in place without incurring a break cost. It also means that Lines of Credit can not be granted under a fixed interest facility
Variable Interest loans is where the interest being charged on a loan is governed by the Reserve Bank Index rate. If the index rate increases or decreases, the interest on the loan will move in the same direction. The advantages are many in this respect as it offers the greatest amount of flexibility with the various loan products, as the rate can be varied. The disadvantage of a variable rate is that if the interest rate moves up that you will incur the higher rate. Another advantage is that if it is apparent that rates are going to increase, some of the products can be switched to a fixed rate to lock in the applicable rate of the day. This will not apply to Lines of Credits or any facilities where reduction of principal is required.
Further to this, lender's may have to vary their rates in accordance with their cost of funding. In the latter part of 2007 and early 2008 we have seen almost all lenders (including the major trading banks) pass on additional cost of funds increases in addition to the Reserve Bank of Australia adjustments, with some increases being by as much sixty basis points (0.60%). This stems from the credit liquidity crisis being experienced outside Australia, in particular, the United States of America, were a substantial portion of securitized funds are sourced.
Some Non-Conforming Lenders have had cost of funds increases of up to 200 basis points (2.00%) making these sources of lending expensive, and back into the double digit interest rate category which has not been seen in Australia since the 1990's.