Your Questions Answered (FAQs)
We’ve outlined the answers to the frequently asked questions that our clients ask us. If you have a question and can’t find the answer below, or want to speak to us directly, feel free to call us on 1800 875 216 or send us an email at info@loansuite.com.au
The first step is to arrange your obligation-free discussion with our team to discuss your personal financial situation and explore how we can assist you. 1800 875 216 at any time.
No. As we work with a wide range of lenders to find the right solution for you, we will often end up saving you money than if you’d simply walked into your local bank with an ‘any loan will do’ approach.
Our team works with a wide range of lenders and is able to provide objective, tailored advice to you, rather than ‘in-house’ products. We can also guide you toward the right solution for you, rather than the right product for the bank and ensure that the arrangements remain suitable for you.
Our team’s extensive background in financial planning and property investment allows us to draw on a wide range of experience and expertise for our clients. We also have the added benefit in having worked with a range of Australian resident and expat clients across the globe to find the right lending solutions for them. Arrange an obligation-free discussion with our team by contacting us today.
Depending on your circumstances and personal financial situation, a debt consolidation loan may assist you in reducing unnecessary interest expenses. Contact us today to arrange an obligation-free discussion to explore whether a debt-consolidation loan is the right solution for you.
A debt consolidation loan can typically be implemented for up to 7 – 10 years. This can allow you to make one manageable repayment on a regular basis, rather than trying to keep track of multiple credit and store cards.
If you have multiple sources of ‘bad debt’, such as credit cards, store loans and personal loans, consolidating your debt into one, low-cost, easy-to-manage repayment plan could be an ideal solution for you. Speak to our team today to find out how we can assist in getting you on track to reduce your debt burden.
At LoanSuite, we recognise that as you grow and expand your business, financing is an important tool in allowing you to do so in the right manner. We can work with you to identify the right commercial lending solutions for your business based on your financial goals and objectives.
A business equity loan acts as a line of credit, which is typically secured against a residential or commercial property in your business. When drawn, you will pay interest on the funds drawn. This can be a particularly useful tool if you’re looking to expand your existing business or start on a new business venture.
Invoice financing is a strategy whereby you are able to access a percentage of your unpaid invoices. The invoices act as the security against the funds drawn by your company. This can be particularly useful in allowing your company to smooth out cash flows over time.
A commercial overdraft facility can act like a line of credit for your business allowing you to smooth out your company’s cash flows when needed. This can be a particularly useful tool in some circumstances.
Are you looking to utilise the equity in your existing property to grow your property portfolio? If so, we can certainly assist having worked with a number of clients to achieve the same outcome. We can help you identify how much equity you can draw, and how to best structure the financing to achieve your financial goals. Contact us today to discuss how you can access the existing equity in your property.
This is a massive strength of ours’ and where we truly excel. We have a significant amount of experience in working with Australian expats living and working abroad. Get in touch with us to discuss how we can assist you and find the right solutions for you as an Australian expat.
A principal and interest loan is a loan where the borrower will repay the principal and interest components at regular intervals throughout the life of the financing arrangement. This will steadily reduce the principal amount outstanding of the loan.
An interest-only loan is a loan whereby the borrower only pays the interest component. This is typically for a fixed term of up to 5 years, after which many borrowers will either commence repaying the principal also, make a lump sum payment or refinance to another interest-only loan.
Prepaying interest can be an attractive option to reduce your tax liabilities in a given financial year. This could allow you to prepay up to 12 months’ interest on your investment property loans and claim a tax deduction in the current financial year. Be sure to seek professional advice before implementing such a strategy.
The opposite scenario to negative gearing, positive gearing refers to a situation where the rental income from your investment property exceeds the cash expenses such as the bank interest.
Negative gearing refers to a situation where the interest and cash expenses of owning your investment property exceed the rental income that is being generated. In other words, you are losing money on your property based on the current cash flows. In Australia, this can be a tax-efficient strategy, but it is important that you seek the right advice before you implement such a model.
An offset account acts just like a transaction account with the added benefit of reducing the interest expense on your home loan. The interest expense charged will typically be on the current balance of your home loan minus the amount you have sitting in your offset account. It can often be beneficial to have a salary and other income paid into an offset account to reduce interest expenses.
An LVR is the Loan to Value Ratio, which refers to the amount you have borrowed relative to the value of your home. For example, if you had borrowed $800,000 from the bank, and your home is worth $1,000,000, your LVR would be 80% ($800,000 / $1,000,000).
Most lenders will require you to have saved 20% for the deposit for your home, allowing you to borrow the remaining 80%. If you wish to borrow more than 80%, most lenders will require you to take out Lender’s Mortgage Insurance (LMI) to protect the bank in the event of default on your repayments. This means that you may be able to purchase a property with as little as 5% of the deposit, but you must bear in mind the cost of LMI.
In most cases, you will set up your regular home loan repayments by direct debit or BPAY arrangements, which may be weekly, fortnightly or monthly. The amount payable will be dependent on the interest rate, the term of the loan, whether it is principal and interest or interest-only and any other key factors.
Yes, most lenders will allow you to fix a portion of your debt and keep the remainder variable. This could be a valuable strategy when factoring the benefits of offset accounts while maintaining some cash flow certainty.
With a fixed rate loan, the interest rate payable will generally not change for the fixed period. This can be advantageous for you as a borrower if variable interest rates are rising as it provides some cash flow certainty. With a variable rate loan, the interest rate payable will change as the cash rate is changed by the Reserve Bank of Australia, or other factors push up bank interest rates.
Generally speaking, yes you can. The stamp duty payable will vary between each state so be sure to check out our stamp duty calculator here. The stamp duty amount can be added to the principal amount of your loan and your cash deposit can be utilised to cover the stamp duty expense.