Comprehensive Home Loans offers an extensive range of home loan products funded by an extensive range of Australian banks, financial institutions, mortgage managers, mortgage trusts and superannuation funds with whom we have long standing accreditations with.

We offer our clients a wide range of different home loan products. The structures can vary from Lender to Lender, and as well as your individual circumstances, loan amounts and loan purposes.

The primary loan facilities are as follows:

A Principle & Interest facility (P & I) is the most common home loan facility suited to the owner-occupied property borrower.

The loan is based over a set term (typically 30 years), with a set contractual monthly, fortnightly or weekly repayment. This repayment will vary due to any alterations to the interest rate (assuming a variable rate facility), resulting in the full clearance of the debt within the contractual term.

If it is a variable rate home loan, the facility has the flexibility to allow you to increase your repayments thereby reducing the loan term and the total amount of interest paid. However, a fixed rate home loan is typically less flexible in the amount of additional payments you can make.

Principle & Interest facilities, however, are not a tax effective structure, and as such, is not as popular with investors financing investment properties – who typical prefer an Interest Only facility for tax minimisation purposes.

An Interest Only facility (IOL) is a more tax effective structure, wherein the loan balance (the principle) does not reduce during the Interest Only period as the monthly payments consist solely of the interest accrued over the month.

As there are no taxation advantages to any principle reductions, an IOL ensures that every cent paid on the facility is tax deductible – assuming of course that it is related to an investment property.

Be aware though that most lenders apply a premium to the rate for investment property loans – particularly interest only facilities.

A line of credit (LOC) facility can best be described as a domestic overdraft, wherein a credit limit is set, but interest is calculated daily on the outstanding balance (or drawn amount) and charged monthly to the account. Funds can be accessed at will (whilst ever you are within the limit) via cheque book access, eftpos, ATM or internet banking.

Although they typically attract a higher interest rate, LOCs are particularly favored by investors who like the flexibility of a “come & go” facility, giving them access to funds almost instantly to use for the purchase of shares, property or other investment instruments. It is also particularly useful for self-employed clients.

However, LOCs are an older style loan and the rise of offset facilities (which typically don’t attract a higher interest rate) has seen the demand for LOCs fall significantly over recent years.

An offset facility is effectively a savings or account that is linked to your mortgage loan account.

Under this structure, any funds held in a credit account are offset against the loan account. In other words, when it comes to calculating the interest charged on your home loan, the balance of the savings account is deducted from the balance of the loan account on a daily basis, and interest is calculated on the difference. For example, if you had a loan balance of $450,000.00, but had $50,000.00 in credit in the offset account, then the interest would be calculated on $400,000.00.

This gives the client easy access to your savings – while at the same time, reducing the interest that you accrue on your home loan. As a result, you save interest on your mortgage and avoid paying any tax on any interest you otherwise would have made on your savings account.

It’s a win / win situation for the borrower.

Low Doc facilities are loan facilities that are particularly popular with self-employed clients.

They are designed for clients who cannot formally verify their income through traditional means due to various reasons such as not having tax returns ready, there may have been an unusual occurrence happened during that year which may have impacted negatively on the profitability of a business, or the current financial year may be significantly better than prior years. In such circumstances, conventional lending may not be available for these clients.

At Comprehensive, we understand that not all in life goes according to plan, and due to poor financial management, a change in financial or personal circumstances, or due to circumstances beyond your control, your credit rating may well have been detrimentally affected.

Credit Impaired facilities are specifically designed for such clients – and we have a wide range of products to choose from.

Depending on the level of impairment (i.e. the number and severity of the credit defaults), we have access to a number of Lenders who overlook such impairments and will provide loans to clients experiencing such circumstances. These products can also be provided in a Low Doc facility.

Please understand that there will always be a premium added to the interest rate by the lender with these products in order to offset the increased credit risk perceived by the Lender.

At Comprehensive, we have a strategic alliance with credit repair companies and we like to work with the clients to resolve their credit impairments so that we can switche them from a credit impaired loan to a standard home loan as quickly as possible so that our clients can enjoy the savings of a cheaper home loan.