Refinancing To Improve Your Terms With Your Bank?
Releasing Equity To Fulfil Your Dreams?
Renovating To Update Your Tired House, Extending, Or Maybe Just Shaking Things Up A Bit?
Borrowing Money To Buy Your First Home?
I Am:
With Access To Over 40 Different Financial Institutions, As Well As Private Equity Funders. Sokudo Finance Will Help You Find The Best Home Loan For You!
Every bank or lender has a different appetite for security. Any security considered to be ‘non standard’ will need to be placed with a bank / lender who has appetite for that specific security at time of application.
We understand that a lenders appetite for security changes constantly. Sokudo Finance has strong relationships across all types of lenders in the Commercial lending space which allows us to provide you with the right advice the first time.
Types of Home Loans
There are different types of home loans available in the market to cater borrower’s different needs.
Variable Rate Home Loan
The most common type of loan when purchasing property. The interest rate is variable which offers the most flexibility when wanting to accelerate debt reduction, make changes to or increase the limit of your loan during the original loan term. The interest rate and repayment changes with the market.
Fixed Rate Home Loan
A contract is signed with the lender to fix the interest rate on this loan for an agreed period. Generally, fixed rates are offered between 1 and 10 years. This can offer peace of mind that your repayments are protected during the fixed rate term and can be a great option for first home buyers or investors. Be mindful that there is a penalty fee if this type of loan is altered or changed in any way during the fixed rate period.
Interest Only Repayments
The borrower only pays the interest on the mortgage through monthly payments for a term that is fixed on an interest-only mortgage loan. The term is usually between 5 and 7 years. After the term is over, many refinance their homes, make a lump sum payment, or they begin paying off the principal of the loan.
Principle and Interest repayments
Principal and interest payment means your repayment is divided up into two portions. Some is sent towards paying off the interest due on your outstanding loan amount, while the remainder goes towards paying off the outstanding loan amount itself. What does principal and interest mean? Principal is how much money you borrowed from the bank. Interest is the extra money you have to pay back for borrowing that money.
Home Improvement & Extension loans
Renovation or repair of the home. When you want to extend or expand an existing home, like adding an extra room etc.
Home Conversion Loan (Security Swap)
When you want to keep your loan in place during the period between selling your current property and purchasing a new one. The lender holds a percentage of cash in a term deposit as security for your loan until a new property has been purchased. The term deposit funds are then released to complete the purchase of your new property which is taken by the bank as security.
Bridging Loan
This type of loan is required when there is a short period between purchasing your new property and selling the existing property. The bank will bridge this gap so you are not making full repayments on both loans. There is a maximum time period a bank may offer bridging finance before they step in and sell the property for you.
Home Construction Loan
May be taken when you want to construct a new home. Repayments are limited to only the interest on the drawn balance until the loan is fully drawn and converted to a property loan
Land Purchase Loan
When you want to purchase vacant land, a Land Loan is generally required. This type of loan is usually restricted to a lower lending value ration of 60% to 70% and may have the term limited to only 1 year before the bank requires a property to be constructed on the land.
How Does This Work? What's Next?
There are different property finance options and home loans available in the market to cater borrower’s different needs
Something You May Not Know
As an individual you are protected by the National Consumer Credit Code (NCCC).
This means in short that there are policies and procedures behind every process allowing you to borrow money designed to ensure responsible lending is practiced by those lending you money.
Sokudo Finance will help you make the best decision for you and your circumstances.
Sokudo Finance has access to private investor and private mortgage funds which gives borrowers an opportunity to secure finance when the banks are not able to assist. We work with genuine lenders looking to lend money for property based transactions. We are located in Birkdale, servicing all areas of Brisbane, Gold Coast and the Northern Rivers.