Property Investment Loan

Making property investment easier

Your personal NIFERA consultant understands that the needs of property investors are different to those of owner-occupiers. That's why we have a range of investment home loans designed to help you meet your specific financial goals.

Join the NIFERA Investment Program

Has the time come for you to get your foot in the investment property market? At NIFERA, we understand the property purchase process AND we know just how time consuming, stressful and often daunting the first step into property investment can be.

So, we've created the NIFERA Investment Program, which is designed to help first time property investors navigate their way along the road to property investment.

NIFERA car loans

Snatch up a low rate NIFERA Secured Car Loan and get into your new car, fast.

After something else?

If you're dreaming of something else, you can still get a NIFERA Secured Car Loan and reduce the interest you pay. If you own a car that's worth more than $10k and 100% legally yours, simply use this car as security in order to get our super low rate.

Hurry, this rate can't last.

Call our Application Hot line now - 1800 643 372

Flexible options to make you happy:

• Borrow from $10k to $100k.
• Fixed repayments weekly, fortnightly, or monthly.
• Choose to repay over 3 to 7 years.
• Make additional repayments as and when you choose.
• Simple online application process.

How they work

A reverse mortgage allows someone aged 60 or over to borrow money against the value of their home. It usually only needs to be repaid when you sell the house, permanently move out (such as to go into long-term aged care) or die.

Reverse mortgages work in the opposite way to home loans. Instead of the loan sum diminishing because of your repayments, interest is applied to your loan so the debt increases. You're not required to make any repayments but the impact of fees and interest means the debt grows over time. At current interest rates, the amount you owe would double in less than 10 years.

Disadvantages

Reverse mortgages can limit your options in the future:

You may not have enough money left to fund moving into a retirement village.
• The value of your estate may be much less than anticipated because the debt increases over time.
• If you take the loan as a lump sum it may have an impact on your eligibility for Centrelink payments.
• If you live with a partner or spouse and you're joint owners of the house, the reverse mortgage would be in both names so your home is protected as long as one of you lives there. If only one of you owns the house, be warned: the loan will only be in one name so it will have to be repaid when the partner who owns the house dies or moves into residential aged care.

Contract concerns

Many contracts are confusing and hard to interpret. We think consumers need to be very cautious when signing up:

• Wide-ranging default clauses. Borrowers can be in default for minor contract breaches. When you're in default the lender can require immediate repayment of the whole loan and may charge you a higher interest rate. This may lead to enforcement action and the sale of your house.
• The No Negative Equity Guarantee (lender covers any shortfall if your loan balance exceeds the proceeds from the sale of your house) sometimes seems to be so limited that it might not protect you at all.
• Some contracts are based on standard home loan contracts which include many limitations to your rights

Low-doc loans: are they for you?

If you take out a 'low-doc' (low documentation) loan you won't need to give your lender or mortgage broker as many documents to prove your income, assets and liabilities. You still have to apply in writing and sign your loan agreement, but you may not be required to produce payslips, tax returns or other proof of income that your lender would normally require. You are usually simply asked to state your income - a process called self-verification.

Low-doc loans can help if you would not qualify for a standard loan, but there are usually some strings attached. It's vital that you understand what you're getting into.

For example, the Tax Office receives data from banks in relation to low doc loans. They then compare your statement of income with your tax return. It is important to talk to your personal NIFERA consultant to really understand this type of loan.

Why use a broker?

It is a fact that there is rarely unbiased advice available for you to tap into when you are considering applying for a mortgage. Unlike thirty or forty years ago, sales targets are high for those individuals that work for a bank or a lender and thus they are torn between doing what is best for the customer and doing what is best for themselves. Unfortunately, the latter often wins out but that could leave you with a mortgage that you do not want and looking for a better deal a little further down the road with stress levels that you neither want nor need. This is where your personal MIFERA Mortgage Broker comes in.

Your personal MIFERA Mortgage Broker can offer great advice that is completely impartial because they have access to a whole range of products from high street banks and lenders, specialist lenders and independent lenders as well so you can choose the right one for you with no extra pressure being exerted upon you. With no sales targets or figures to work to, your personal MIFERA Mortgage Broker can offer you the mortgages that you want with the terms and conditions that you need so you can make that choice for yourself. Of course, if you do want advice than that is also available but it is not a required factor. After all, you are the customer!

First home owners grant

The First Home Owners Grant is an important part of owning your first home. Not only does it provide you with some much-needed cash, it can also be used to add to your deposit. Your NIFERA personal consultant is able to advise whether you are eligible and can assist you with the application process.

Choice and range

Being a first home owner means that it is likely you may not have the experience to find a loan that suits your needs. Going to a bank can be an overwhelming experience and they only have access to their products, which may not work for you. Your NIFERA personal consultant has access to more than 650 loans from a panel of more than 30 lenders, which means more choice!

Convenience

At NIFERA we understand that first home buyers generally lead very busy lives – from work to catching up with friends, how will you find the time to sit down and sort out your home loan? Your NIFERA personal consultant is available seven days a week and can meet at a time and place to suit you.

This sounds good, but what does it cost?

Nothing more than if you got the loan through the bank directly. Whether the bank pays a broker or an employee – the costs are similar so it means that you get choice and range without paying more!

Types of loans

Full Doc (documentation)

This is the standard loan type, where you provide documented proof of your income. Suitable for permanent employees and established self-employed business owners who can provide full financial records.

Low doc and no doc

Suitable for borrowers who are unwilling or unable to provide verification of their income. Generally only available to people who are self employed, or casual employees. For these loans, you may need to provide the lender with a statement confirming your income or a statement that you are able to meet the proposed loan repayments, with little or no requirement to provide documented evidence. Compared to full doc, these loans generally carry a higher interest rate and are available only at lower Loan Valuation Ratios (LVRs).

Reverse mortgages

These loans are most suitable for retirees who own their home, but are looking to release cash. Unlike a traditional mortgage, there are no periodic repayments required, but there are interest charges that are accumulated against the outstanding loan balance. The loan generally doesn't have to be repaid until the property is sold or the owner dies.

Non-conforming

These are specialised loans for people who have some form of blemish in their credit history, such as a default, or to finance a property that has unusual characteristics. The interest rate on these loans is generally higher than traditional Full-Doc loans.

Types of lenders

Major banks

There are four very large locally owned banks in Australia that serve a large proportion of the market. Each of the large banks offer the advantage of a well known name, extensive national branch network and comprehensive product range.

Other Australian banks

These banks are locally owned and have tended to be most successful in their original state of origin, but they are increasingly expanding their branch networks into other states.

Overseas banks

There are a number of large overseas banks that operate either via local Australian subsidiaries, or as a branch of the overseas parent. Some of these players specialise in loans distributed via brokers, or even direct via the internet.

Building societies and credit unions

Building societies tend to serve a local geographic area, while credit unions serve groups of people who share a common characteristic such as an employer, occupation, or local geographic area. Given that these organisations are not-for profit, they don't have to pass on profits to external shareholders, which means that their interest rates and fees can be quite competitive.

Retail lenders (via wholesale non-banks)

There is a multitude of smaller lenders who offer their own loans under their own brand, using funds that are sourced from a wholesale non-bank. It's just like goods retailing, where a shop sells a product under its own brand, using a product that is supplied by a third-party wholesaler or manufacturer. The benefit of this arrangement is that the retailer has access to wholesale rates and can pass on the savings to you.

Specialist non-banks

There are a number of lenders available that specialise in offering loans to people who don't fit the normal mould. In particular, non-conforming lenders offer loans to people who may have a blemish on their credit record, or who are looking to purchase a property with unusual characteristics. Another source of lending is via solicitors' funds. In general, these forms of lending are considerably more expensive than standard loans, but they offer the benefit of offering finance to people who may otherwise be ineligible.

Frequently Asked Questions

If you haven't used a mortgage broker before, chances are you'll have all kinds of questions about them. We've put together a few of the main questions to help you understand the process. At NIFERA we will assign a personal consultant to look after you - so call us today.

What are the advantages of using a broker instead of going to a bank or other lender?

The most obvious advantage is that a broker can give you access to a large range of lenders and their products. This means you are far more likely to get the home loan that's best for your needs. Convenience is another important benefit. Brokers can come to see you at your home or office and will fill in most of the paperwork – a big saving in time and hassle. Managing your home loan application is another big advantage. A broker will follow up with lenders and settlement agents to make sure that financing occurs at the right time. Your personal NIFERA broker can also advise you how to get any stamp duty relief or first home buyer grants for which you may be eligible.

What sort of home loans are available from brokers?

Brokers provides access to home loans from all the main banks, building societies and other lenders. In total, your personal NIFERA consultant can offer a range of over 800 products from more than 30 lenders.

Do home loans cost more if you get them from a broker instead of direct from a bank?

No. The costs are the same. From the bank's perspective, whether it pays a broker or an employee, either way there is a cost associated with selling a home loan.

Do I have to pay a mortgage broker to set up my home loan?

No. NIFERA consultants are paid a commission by the lender that provides you with a home loan.

If I buy a home loan from a broker, do I still need to go to see the bank or other lender who provides the home loan?

No. This is all handled for you by the broker.

What documents do I need to take out a home loan?

Proof of income, in the form of the past 2 or 3 months payslips – if self- employed, you will need financials going back 2 or 3 years;
• Evidence you have the required deposit, usually a bank statement showing the funds will be sufficient;
• An accepted offer of acceptance (i.e. signed by the vendor);
• If you have a credit card, a statement showing your credit limit;
• 100 points of ID – a passport or birth certificate and driver's license is sufficient.