Central Coast Financial Services (CCFS) is linked with Central Coast Home Loans – one of the biggest and longest established brokers in the Central Coast region. As a result, CCFS can help you find the best product for your home loan needs through our extensive network of lenders. Whether you’re a first home buyer, purchasing an owner occupied property or investment property, refinancing or consolidating debt, we do the leg work for you.

What Types of Loans are Available?

Variable Rate Home Loans

The rate charged on this type of loan moves in accordance with interest rate movements. Basic variable loans generally have fewer loan features than standard variable loans. Basic loans are suitable if you’re paying a consistent amount off your loan over the life of the loan, but are not recommended if you’re looking to pay your mortgage off quicker.

Advantages:

  • Repayments fall when interest rates fall
  • Borrowers can pay off the loan quickly without any penalties for extra payments
  • Standard variable loans are flexible and offer additional features such as redraw (the ability to take out extra money you have put in) and the ability to make extra payments

Disadvantages:

  • Repayments rise when interest rates rise

Fixed Rate Home Loans

This type of loan has a fixed interest rate and fixed repayments. The time period for which you can fix a loan varies, but you can generally fix your repayments for between 1 and 5 years. At the end of the fixed loan period you can decide whether to fix the loan again over another period of time at the current market rate, or you can convert to another loan type, such as variable, for the remaining time left on the loan.

Advantages:

  • Repayments don’t rise if interest rates rise
  • Peace of mind and certainty for borrowers concerned about rate rises and the consequent effect on their ability to meet payments
  • Allows for household budgeting

Disadvantages:

  • Repayments don’t fall if interest rates fall
  • Early payout of the loan is penalised
  • Only limited additional payments are permitted

Split Rate Home Loans

This type of loan sees one portion of the loan fixed and one portion of the rate variable. You can select what percentage of the loan you allocate to each.

Advantages:

  • Borrower can make additional payments on the variable portion
  • Provides more certainty in budgeting than full variable rates
  • Peace of mind and certainty for borrowers concerned about rate rises and the consequent effect on their ability to meet payments

Disadvantages:

  • Repayments don’t fall if interest rates fall
  • Only limited additional payments are permitted

Interest-only Home Loans

The borrower only repays the interest on the principal during the term of the loan. Repayments are lower than with a standard variable principal and interest loan. At the end of each interest-only period, which is normally 1 to 5 years, you must begin making principal and interest repayments for the remaining life of the loan.

Advantages:

  • Cuts the cost of buying a residential investment property in the short-term, which could allow you to make greater contributions to your non-tax deductible home loan
  • Lower initial repayments

Disadvantages:

  • Sudden increase in repayments at the end of the interest-only period when the loan then converts to principle and interest repayments