Would you like a Home or Commercial Loan with that?

Home Loans can all look appealing on the outside. Cube makes sure you don't get a "mismatched" loan that is just nicely wrapped!

Cube Home Loans knows how important it is to secure the loan that suits you best. After all, buying a property is one of the biggest financial commitments you will make in a lifetime. Whether you are a first or second home buyer, an investor, someone looking to refinance, or simply wanting to access the equity built up in your home, let one of our consultants help you select the loan that suits you best.

Basic
The most common type of finance, the Basic Home Loan is suitable for Owner Occupied or Investment properties. Basic Home Loan's offer a variable interest rate, that rises and falls with the market, however is usually below the standard variable rate. Basic Home Loans often have restrictions on their features, or don't offer the same level of flexibility as a Standard Variable Product. Nonetheless a Basic Home Loan is a great way of taking advantage of a lower interest rate without having to lock into a fixed interest rate over a specific term.

Bridging
Bridging Loan Products, sometimes referred to as Relocation Loans, are used by those borrowers with an existing property or home loan. Perfect if you want to purchase your new dream home before selling your existing property. Bridging Finance provides enough funds to cover the full purchase price and associated costs of your new property purchase. However, the lender will take both your new property and your current property as security for the loan. If you have an existing mortgage over your current home the lender will also advance funds to take over that loan and pay out the existing lender. Bridging Finance generally carries a term of around six to twelve months (depending on the lender) from the date of settlement of the new property and lenders will require an end to debt before considering.

Fixed
A Fixed Rate Home Loan is a loan which secures an interest rate for a fixed period of time. Fixed rates appeal to borrowers who prefer the security of a set repayment, without the worry of a variable interest rate. Fixed Rate Home Loans often offer lower levels of flexibility as a trade off for the stability of a guaranteed rate.

Honeymoon/Introductory
These types of loans offer a low interest rate usually for the 1st year of the loan. The rate may be fixed, variable or capped, meaning that if interest rates rise your rate will not go up, but if rates fall that rate will go down and you will benefit. Once the Introductory or Honeymoon period is finished the interest rate usually reverts to the standard variable rate. The advantage of an Introductory Rate is that it offers borrowers a chance to reduce the principal quickly by making extra repayments. The main disadvantage is that most banks charge penalties if you discharge these types of mortgages within in first 3-4 years after settlement.

Line of Credit
True Lines of Credit differ from traditional home loans in that they do not require a minimum monthly repayment as long as you do not go above the approved credit limit. This flexibility over traditional home loans allows a borrower to use their income and savings to reduce the balance and reduce the interest payable. Lines of Credit are suited to borrowers who want flexibility and control over their home loan, or those who want to build a Wealth Creation Plan.

Low Doc
Low Doc loans are relatively new to the market. They are a flexible finance solution for self employed people who have an income and assets but may not have all the usual paperwork such as financial statements or tax returns. With a Low Doc loan you get all the features of a Standard Variable Product such as, access to redraw, flexible repayment options, ability to make lump sum repayments and even mortgage minimization through an offset account. To be eligible for this product you will need a clear credit history and sufficient equity or savings to complete the purchase. You will also need to contribute around 20% - 30% of the value of the property.

No Deposit
A No deposit home loan allows you to borrow up to 100% of the purchase price whilst still providing a full range of home loan features. These products generally attract a higher rate of interest due to the increased risk from the lenders perspective. No Deposit loans have strict entry requirements such as postcode restrictions and employment history. Only applicants with a clear credit history will be considered for a no-deposit loan.

Non - Conforming
Non-conforming loans are designed for borrowers that do not meet 'standard' bank criteria and may include seasonal or contract workers, non-residents, small or no-deposit holders or even those with a poor credit history. This type of loan may also be suitable if you wish to borrow 100% of the property value. In most cases non-conforming loans attract a higher rate of interest.

Offset
A home loan with a linked offset account, gives you the flexibility of using your income and savings to reduce the balance of your home loan, thus saving you interest. The best offset products allow 100% of your savings to be used to offset the balance of your home loan. Accordingly, the balance of your offset account is deducted from your loan amount, before calculating interest. Home Loans with an Offset account are best suited to borrowers who have excess funds available to them but also require the flexibility to use them at any given time. Offset accounts can be used in the same way as a Line of Credit as long as the lender calculates interest on a daily basis. While an attractive proposition, it is important to bear in mind that Home Loans with an Offset account are at times priced with a slightly higher interest rate.

Professional Package
Most banks offer Home Loan Packages aimed at those who fall into a high income bracket or for members of professional associations. There are generally some qualifiers in place such as; minimum household income, minimum loan amount or alternatively membership of a professional body. These qualifiers are intended to restrict the usage of these products. Professional Home Loan Packages also offer attractive discounts to the Standard Variable Interest Rate as well as access to Gold Credit Cards, reduced insurance premiums and other benefits such as discounted application fees. Should you fall into this category, we can tell you which bank, and for which Professional Home Loan Package, you qualify for.

Standard Variable
Standard Variable Rate loans are based on the official Reserve Bank rate and, as the name suggests, will vary with time depending on the market. If rates go up so will your repayments and vice versa if they go down. This type of loan is traditionally the most flexible and may include optional features such as the ability to make extra repayments, to redraw funds or to split your loan, just to name a few. It may also be possible to incorporate an introductory discounted rate with this type of loan. Introductory rates are usually effective for the first 12 months of the loan, at which it then reverts to the standard variable rate for a prescribed period.

Reverse Mortgage
Reverse mortgages can allow you to free up money to maintain or increase your standard of living in your later years of life. You don't have to make repayments, but the debt increases as interest in charged. Reverse mortgages provide income without the need to sell your house and relocate to a smaller residence.

They work in the reverse way to a home loan. Instead of the loan sum reducing with repayments, interest is applied to your loan so the debt increases. You do not need to make any repayments. The amount of debt can increase rapidly and could possibly double in less than 10 years. This type of loan is not available to everyone and is geared towards the elderly borrower.