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Commercial & Residential Mortgages

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How Sterling Financial Group can help you?

Selecting the right home loan can make a big difference to your financial goals and with so many home loan products available, choosing the right one is more complicated than ever.  To help you make the right decision Sterling Financial Group can work with you to select the best residential mortgage to suit you.   With a superior lending panel of reputable providers we can gain access to a variety of products that will cater to your needs.  We will also assist you every step of the way to ensure the process is as simple and straight forward as possible.   Once satisfied with your choice they will then assist you completing the application, lodging it with the lender, tracking the loan and then driving it all the way through to settlement and beyond.

We assist you to ascertain out how much you can borrow, find the most suitable loan and submit your application.  The below is a guide as to how we assist you through the process

  • What will I need to provide?
  • How much you can afford to borrow?
  • What loan will be most suitable for me?
  • Once I have decided on a product, what is the next step?
  • Once I have found a property…where to from there?
  • Who attends to the settlement of our loan?

 

Loans

Loan advice
Whether you need a home or investment loan, SFG has access to a superior panel of approved lenders who can offer competitive quotes and products to meet your specific financial needs.

Loan types
There are hundreds of different home loan products on the market that fit into each of the types of loans explained below.
 We have provided some pros and cons to help you understand each loan type.  

Standard variable rate loans
This is the most popular type of loan in Australia and offered by most lenders. It's a variable rate loan which offer more features and flexibility so the rate is slightly higher.

Basic or "no frills" loans
A Basic or no Frills loan is a variable rate loan with a relatively low interest rate. There are usually no extra "bells and whistles" which are likely to add to the price.

Fixed-rate loans
The interest rate is set for a particular term — usually one to five years so your repayments are set for that period. At the end of the term you can lock in another fixed rate, switch to variable or go for a split loan.

Introductory Loans
There interest rate is usually low to attract borrowers.  This loan type is also known as a honeymoon loan, this rate generally last only for anywhere between 6 months – a few years before it rises.  Most rates revert to the standard variable rate.  Rates can be fixed or capped

Equity line of credit loans
These loans let you use the equity in your home to finance other things such as renovations or to invest in other assets such as shares or funds. You generally need to have a large deposit or good equity in your home to be able to take advantage of this.

Professional or packaged home loans
Packaged home loans are offered by banks to people in a particular profession or those borrowing over a certain amount — sometimes it's over $150,000 but more commonly over $250,000. They were originally introduced to cater to high income earners but have now become more widely available to certain professional groups, those who need to borrow a higher amount or those who have a good relationship with the bank. Features include rate discounts, reduced ongoing fees, fee-free credit cards and transaction accounts.

No deposit loans
Normally you have to save at least a five percent deposit before applying for a loan. With a no-deposit loan you can borrow 100 percent of the purchase price. Some lenders go as high as 107 percent so you can also borrow the money to pay for the extras such as stamp duty.

Non-conforming loans
Non-conforming lenders will lend money to people who don't meet the banks' strict lending criteria including:

  • Self-employed people likely to have difficulty verifying their last three years of income.
  • Older borrowers (over 55) for whom a 25-year loan may not be appropriate because they are close to retirement.
  • Those who wish to borrow more than 90 percent of the property's value.
  • People with a bad credit history, for example those with a history of late repayments, loan default or possibly even bankruptcy.
  • Seasonal or casual workers who have infrequent or variable income.
  • New migrants with no borrowing record.

 

First home buyers

First home owners grant  
The First Home owners grant is a national scheme to assist people in purchasing or building their first home.

The scheme commenced on 1 July 2000 and is an ongoing scheme with no end date yet specified. The grant provides $7,000 to people buying their first home. There is no tax payable on the First Home Owners Grant.

All eligible first homebuyers who qualify for the Victorian Government $7000 First Home Owners Grant may be eligible for additional First Home Bonus payments. A $3,000 bonus payment applies to contracts entered into between 1 January 2006 – 30th June 2007. To be eligible to receive this bonus, the property purchase must not exceed $500,000. Both the First Home Owners Grant and the First Home bonus are fully funded by the Victorian Government and are administered by the State Revenue Office.

Eligibility
To be eligible to receive the FHOG, the following eligibility criteria must be satisfied:

  • Each applicant and their partner must not have received a grant under a first a First Home Owner Grant Act 2000, in any State or Territory of Australia.
  • Each Applicant and their partner must not have owned residential property, either jointly, separately or with some other person prior to July 2000, in any State or Territory of Australia.
  • Each applicant and their partner must not have owned and occupied a residential property either jointly, separately or with some other person on or after 1 July 2000 in any State or Territory of Australia.


* FHOG Conditions apply and are subject to change. For further information please visit www.sro.vic.gov.au

Refinancing

Refinancing your home loan
SFG can review your current home loan to ensure you still have the right product for your needs. Don’t assume that just because your loan was once competitive, it still is. Interest rates change and different types of loans are always entering the market. Sterling Financial Group will:

  • Assess your current interest rate;
  • Assess you repayment level; and
  • Assess your financial situation to determine whether a better deal can be sourced saving you money; and helping you pay off your loan faster.

 

Loan tips

Hidden home loan costs
There are many costs associated with taking out a home loan, which don’t relate to the price of the property.

These hidden costs include:

  • Lenders’ fees, including loan application and establishment fees;
  • Government charges including stamp duty on property purchase and mortgage, and title fees;
  • Legal expenses; and
  • Inspection costs.
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