Home Loans

First home buyer

Buying your first home buyer is a dream come true for many. If you wants to understand your eligibility criteria’s like government first home buyers grant and schemes, you are at the right place.

At Promort, we hear you and understand the first home buyers voice. We give the most valuable first home buyer information’s and guide you through the process. We compare the products with competitive interest rates in the market. We help our customers to find the suitable product with little as less deposit for our customers who doesn’t have enough deposits.

Investment Loans

Whether you are buying your first investment property or building your portfolio, Promort can help you to build your investment portfolio.

An investment loan is a type of loan used to finance investments, typically in assets or ventures that have the potential to generate income or appreciate in value over time. These loans are often used by individuals or businesses to fund various investment opportunities, such as purchasing real estate, stocks, bonds, starting a new business, or expanding an existing one.

Here are some key points to understand about investment loans:

Self employed loans

Years ago, banks wouldn’t lend for self employed, now the industry understand there are lots of potential in this sector and then started lending home loans for self employed.

In recent time, even online lender tries to lend for self employed by automating the self employed process digital.

The process is now seen with different lens just like PAYG customers.

At Promort, we make sure we assist self employed customers with their loan purpose to find a suitable soultions.

Construction loans

Construction loans are specialized financial products designed to help individuals or businesses finance the construction or renovation of a property. These loans are typically short-term and differ from traditional mortgages or home loans, as they are intended to cover the costs associated with the construction process rather than the purchase of an existing property. Here are some key points to understand about construction loans:

Short-Term: Most construction loans have a short-term duration, often ranging from six months to a few years. This is because the funds are meant to cover the construction phase, after which the borrower typically pays off the loan or refinances it with a traditional mortgage.

Interest Rates: Interest rates for construction loans tend to be higher than those for traditional mortgages. They can be variable or fixed, depending on the lender and the terms of the loan. Borrowers may also have the option to lock in an interest rate for a specified period.

Disbursement of Funds: Unlike a traditional mortgage, where you receive a lump sum, construction loans typically disburse funds in stages or "draws." These draws are based on completed phases of construction, and the lender may inspect the progress before releasing funds for the next phase.

Conversion to Permanent Mortgage: Once the construction is complete, borrowers often have the option to convert the construction loan into a regular standard mortgage.

Interest-Only Payments: During the construction phase, borrowers may make interest-only payments, meaning they only pay the interest on the outstanding loan balance. After construction, payments usually shift to include both principal and interest.

Here at Promort, we assist you throughout the process of your home construction and helps to find a competitive product that suits your life style.

Fixed and Variable Components: With a split loan, you typically have two parts to your loan: a fixed-rate portion and a variable-rate portion. The fixed-rate portion has a set interest rate for a specified period (e.g., 2 years, 5 years), while the variable-rate portion's interest rate can fluctuate with market conditions.

Interest Rate Management: The fixed-rate portion offers stability because you know exactly how much your monthly repayments will be during the fixed period. This can protect you from interest rate hikes. On the other hand, the variable-rate portion can take advantage of potential interest rate decreases, which can lower your overall interest costs.

Flexible Repayment Strategies: Borrowers can allocate the loan amount between the fixed and variable portions according to their preference and risk tolerance. For example, you might choose to put 70% of your loan in the fixed-rate portion and 30% in the variable-rate portion. This way, you can benefit from both fixed and variable interest rates.

Interest Rate Changes: When the fixed-rate period expires, you may have the option to fix it again at the prevailing interest rate or switch it to a variable rate. Conversely, you can also convert a variable-rate portion into a fixed-rate portion if you want more stability.

Risks and Benefits: Split loans offer a balance between the security of fixed rates and the potential cost savings of variable rates. However, they can also be more complex and may involve additional fees for managing multiple loan components. Borrowers need to carefully consider their financial goals and risk tolerance when opting for a split loan.

Guarantor loans

A Guarantor on a loan is a person who provides an additional security for the home loan. If a family or friends decided to help out with your home loan deposit, Promort can assist with your loan to find the best product available in the market to cater your financial needs.

A guarantor loan is a type of loan where a third party, known as a guarantor, agrees to repay the loan if the borrower defaults on their payments. These loans are typically used by individuals who may have a poor credit history or a limited credit profile or less deposit and are therefore considered higher risk by lenders. The guarantor, on the other hand, is usually someone willing to provide an additional security as deposit and a willingness to take responsibility for the loan if the borrower fails to make payments.

Low doc loans

A loan that requires less financial documentation to prove income, assets and liabilities than a standard loan. Typically used by self-employed people and small business owners, they are usually offered at higher interest rates and may include terms that restrict borrowers.

The information you may be asked to provide to prove your income may consist of a combination of any of the following documents:

• Business and personal tax returns
• Business Activity Statements (BAS)
• GST registration certificate
• ABN registration confirmation
• Accountant's income declaration on letterhead
• Business and personal bank statements

In addition to documents, you may also need to provide your lender few other information to be approved for a low doc loan like ID, assets, liabilities and living expenses.

Here at Promort, we assist with our self employed customers to achieve financial goals when they are not able to fit in to the traditional way of loan eligibility.

Cash Out

Cash out and equity release are two financial concepts related to accessing the value of your home, but they differ in their mechanisms and purposes:

Cash out typically refers to taking out a mortgage or refinancing an existing mortgage on your property to obtain a lump sum of cash.

It is often used when homeowners want to tap into the equity in their homes for various purposes, such as home improvements, debt consolidation, or other financial needs.

The amount of cash you can obtain through a cash-out refinance is limited by the equity you have in your home and the loan-to-value ratio (LTV) set by the lender.

This approach involves taking on a new mortgage with potentially different terms, including interest rates and repayment schedules.

Equity Release

Equity release refers to a financial product or arrangement that allows homeowners, typically those who are older and have significant equity tied up in their properties, to access a portion of the value of their home without having to sell it. It's a way for individuals to unlock the wealth they have built up in their property over the years, providing them with a source of funds for various purposes, such as supplementing their retirement income, funding home improvements, or covering healthcare expenses.

Debt consolidation can provide several benefits:

Simplified Finances: Managing one payment is often more straightforward than juggling multiple payments to different creditors.

Lower Interest Rates: If you qualify for a lower interest rate on your consolidation loan, you can potentially save money over the life of the loan.

Reduced Monthly Payments: Consolidation can lead to lower monthly payments, making it easier to budget and meet your financial obligations.

However, debt consolidation is not a one-size-fits-all solution, and it's essential to carefully consider your financial situation, credit score, and available options. While it can be an effective tool, it doesn't address the root causes of debt, so it's essential we at Promort analysis your spending habits or financial behaviors that led to your debt in the first place before recommending a product.