Standard Variable Loan:
The interest rates on these loans vary at any time depending on the market forces, and the features vary depending on the lender. However, these loans generally offer an offset facility, redraw facility, no limits on additional repayments, and in most cases no early pay-out penalties. A Standard Variable Loan can usually be combined with other types of loans, and are ideal for the borrower wishing to repay their home loan sooner rather than later.
Fixed Rate Loan:
Fixed rate loans are funds lent over a set term with a set interest rate. This allows the borrower to know exactly what their monthly repayments will be should their circumstances change. Some lenders may impose early repayment penalties if lump sum reductions are made to your loan, or you pay the loan out in full. However, a fixed rate loan is ideal in a rising interest rate market as this guarantees you of your interest rate repayments for a set time.
This is available to borrowers who wish to purchase a new home now, and sell your current home later. The interest rate is usually the same as a Standard variable loan. A bridging loan ensures that the borrower will not miss out on a desired property because they haven’t sold their current home.
Line of Credit:
A line of credit provides the borrower with access to the equity in their home or investment properties whenever they wish. It is similar to an overdraft facility in that the funds can be drawn up to the original loan approved at any time. The interest rate on such a facility is usually a variable rate that fluctuates with the market. A line of credit provides a borrower with easy access to funds ensuring peace of mind in times of need.
“ASSET LEND” Proposals:
When clients are unable to prove their normal income to meet standard bank lending criteria, but have 30% equity in their residential property we are able to offer a solution for mortgage finance via our panel of private lenders.
We are able to provide a suite of secured (and unsecured) personal loan products from $3K - $30K. These loans are over a maximum 5-year term, and can be secured by way of a Caveat against your property, or a registered charge against your vehicle.
An interest only repayment facility is usually available on investment loans. The interest is calculated on the original borrowed amount, and requires no principal reduction.
Life Cover will offer a lump sum payment when you pass away. Some good reasons to consider LIFE COVER would be to provide for:
- Mortgage Repayment
- Funeral Expenses
- Day-to-Day Living Expenses
- Raising Children/Future Education
Family Protection provides for a monthly amount to be paid to your family on your death, and is TAX FREE. Some good reasons to consider FAMILY PROTECTION are:
- To cover ongoing monthly accounts such as rates, insurance, power, phone.
- Easy money management – perhaps not have all your Life Insurance paid out as a lump sum – have some initial lump sum to pay for funeral, mortgage etc, and then have a monthly income for your family to cover day to day costs.
Chances are with changes in medical technologies you are now 85% more likely to survive illnesses such as Cancer, Heart Attack and Stroke, but you may not be well enough to work. Unfortunately, in New Zealand the Sickness Benefit will not cover what you usually earn, or provide a lump sum payment. That is why considering products such as:
Living Assurance which is designed to pay a lump sum, in the event of you suffering one of a number of specified critical conditions. Good reasons to consider LIVING ASSURANCE are:
- To seek alternative treatment options
- To protect your family lifestyle, and helping manage day to day costs
- Protection of Children – children between the ages of 3 to 18years old will automatically be protected against many of the serious illnesses covered under Living Assurance – providing fund for their care and other expenses.
Disability Income Protection provides you with a monthly payment if you are unable to work, due to illness or injury, for more than 10 hours a week. It will cover up to 75% of your usual Income. Good Reasons to have income protection are:
- Unexpected Illness
- Keeping the Household running
- Recuperation, cover your financial commitments, so you can focus on your recovery
- A quick return to work – Sovereign provides expert claims managers to assist you with your rehabilitation, OR assist with the costs associated with vocational retraining if you cannot return to your usual trade.
Loan Installment Repayment Insurance: This will pay your usual Mortgage Repayments in the event that you suffer one of a specified 39 conditions, and is NOT offset with ACC.
Health: This type of cover will help with covering medical costs in the event that you need medical care. Further, if you are not on a waiting list, then chances are that your condition will not deteriorate affecting your income, work, and family. Sovereign will pay up to 100% to Agreed Value for nominated surgery/assistance including:
- Medical Hospitalisation
- General Surgery
- Cardiac Surgery
- Oral Surgery
- Pre-Surgery and Post-Surgery Care
- Outpatient Care
….and a number of other services – a detailed list can be easily obtained from our LIMEGROUP Office.