1st Street provides an all-encompassing solution for your financial requirements with a wide range of home loans, business loans, leasing options and financial planning services.

Basic Home Loan

If you are looking for a simple no-frills home loan with a low interest rate and minimal fees, a basic home loan is a great option. This type of loan provides a path to owning your home in a shorter amount of time and without additional products such as linked credit cards or redraw facilities. Credit cards and redraw facilities can increase the size of your mortgage as they are loan facilities and although they offer convenience, by not having these facilities the size of your loan can only go down. In return for a lower interest rate and minimal fees, basic home loans have fewer features and can be less flexible than other loans. Some lenders may give you the option to pay for extra loan features if a time comes when you need them. There may also be fees and charges if you decide to switch loans or lenders, or pay off the loan sooner.

Introductory Rate Home Loan

A great option for first home buyers or those looking to minimise their initial home loan repayments, the introductory rate home loan offers a significantly reduced interest rate for the first 6 to 12 months. Once this introductory period is completed, the interest rate generally reverts to the lender’s standard variable rate.

With a lower introductory interest rate and lower repayments for the initial period, you can free up more cash to put towards other expenses such as decorating, buying furniture and appliances or landscaping the garden.

Introductory rate home loans can have disadvantages such as restrictions or exclusions on the available features. Many introductory rate loans have higher early repayment or exit fees, particularly during the first four or five years following the initial period so it is worthwhile thinking ahead when deciding which loan option is best.

Redraw Facility

A redraw facility is one of the most popular loan features available as it gives you flexibility as well as allowing you to minimise your loan size, and interest payable, at all times. Additional repayments can be made into your loan account and if you would ever like to access those funds, you can redraw them. Instead of having a separate ‘non-everyday’ savings account, any extra accessible funds can be used to reduce your loan account whilst being available to you as necessary.

Most mortgage products, other than the basic home loans, offer a redraw facility. There are a few areas for consideration when assessing loans with a redraw facility such as account setup fees (which can cost up to $300), the amount of free redraws available each year, the potential maximum amount of redraws per year, and the minimum and maximum redraw amounts.

Offset Account or All In One Account

An account which combines your loan, savings, credit and cheque accounts which is intended to minimise the loan amount and thus reduce the interest payable.

Line of Credit

A line of credit home loan is a credit facility secured by a residential property. It is quite similar to a credit card in that you can withdraw funds up to a set limit at any time and repayments can be made in full or on a monthly basis. This type of loan has a set limit, generally higher than most credit cards, and you can withdraw up to your limit without the need for pre-approval. The interest rate is usually higher than a standard home loan but lower than a credit card rate.

As long as the repayments are being made, a line of credit can be used to do property renovations, invest in shares or property, or it can be used to pay expenses.

Most line of credit facilities offer you a cheque book, account cards and internet and phone banking. When used diligently, with financial discipline and budgeting, a line of credit can offer debt consolidation and flexibility.

Split Loan

If you would like the stability of a fixed rate home loan along with the flexibility of a variable rate loan, a split loan provides you with the best of both worlds.

A fixed rate home loan has a fixed rate for a scheduled period with set monthly or fortnightly repayments. It isn’t too flexible but if interest rates change, the repayments on a fixed interest loan remain the same. A variable rate home loan has a rate that can vary, as adjusted by the lender, but it is flexible in terms of making additional repayments and paying the loan off early.

With a split loan, you can have part of your loan fixed and part variable to give you the benefits of both loans in a single home loan. You can customise the loan and add the features you require.

When interest rates are volatile or rising, splitting a loan enables you to hedge against the risk of higher rates whilst still keeping part of your loan at the lower variable rate.

Investment Loan

Investment properties make a financial return so, depending on your circumstances, most lenders will lend up to 90% of the purchase price of an investment property. Lenders mortgage insurance may also be required. Some investors choose interest only loans as the interest payable is tax deductable and without repaying the principle, the overall repayment amount is lower.

If you have equity in your home, when the value of your property is higher than the loan amount, you can use your equity to invest as you wish. For example, if your property is worth $600,000 and your loan outstanding is $400,000, then you have $200,000 in equity which you can borrow against.

Construction Loan

If you would like to build a new home or renovate your existing home, a construction loan provides you with the funds you need as required.

A standard home loan gives you a lump sum payment whereas a construction loan is usually drawn down in stages, usually in line with a few particular stages of construction. This reduces the loan repayments initially as interest is only paid on the amount outstanding during each stage and if it is gradually drawn down then the loan amount remains lower for a longer period.

First Home Buyer Loan

Finding your perfect first home can be challenging, so when it comes to finding the right home loan and securing all the first home buyer benefits, 1^st Street will be by your side.

A standard variable or fixed rate home loan is popular with first home buyers as they are simple loans with minimal fees. Basic home loans often have a lower interest rate than the standard variable rate. Some lenders may offer you access to additional loan features as required but for an additional fee. You may also incur fees and charges if you decide to switch loans or pay off the loan sooner.

A split rate home loan is split between a fixed and variable home loan which gives you peace of mind along with flexibility. These loans generally offer all the features of a normal loan but there may be restrictions such as penalties for early repayments.

An introductory rate with a low initial interest rate can be beneficial for first home buyers as the lower repayments allow buyers to have more funds for purchasing and setting up a new home.

Bridging Loan

When selling one property and buying another, timing the settlements to coincide can be very difficult even if you do find a property to buy in a short space of time.

Bridging finance helps to solve the problem of coordinating the settlement on one property with the purchase of another. When you are considering buying a new property, bridging finance can provide you with greater flexibility and more opportunities. If you find a property to purchase before you sell your existing property, a bridging loan provides short-term access to additional funds which enables you to buy before you sell. Effectively, the lender agrees to take on both mortgages.

Business or Commercial Loan

If you would like to purchase a commercial property or if you are interested in purchasing a home through a business, 1^st Street has specialist commercial lenders who can evaluate the commercial lending market on your behalf, find the most suitable product and apply for a loan on your behalf. In a business loan, the borrower may be a partnership, incorporated business or limited company, so the assessment of the credit worthiness can be more complex than with residential mortgages.

Leasing

If you need an affordable and tax-effective way of gaining access to office equipment, vehicles and more, 1st Street offers a specialised leasing service.

Leasing is a financial instrument commonly used in business. A lease is similar to a rental agreement in that regular payments are made to be able to use an asset. 1st Street can arrange leasing for equipment such as:

• Cars, Trucks and Commercial Vehicles
• Computers, Printers and Office Equipment
• Forklifts, Earth Moving Equipment
• Shop or Office Fit-outs

A lease usually has a term of 1 to 5 years and monthly repayments can be reduced if a residual/balloon payment is added. 1st Street offers a variety of leases including:

• Chattel Mortgage
• Commercial Hire Purchase
• Finance Lease
• Novated Lease

1st Street will find the most suitable and affordable leasing option for you whilst taking into consideration the associated tax and GST implications.

Financial Planning

Financial advice means different things to different people. In the end, financial advice is all about you. It could be dealing with:

• The right strategy to protect your family from unexpected event
• A plan to pay off your home loan by retirement
• The best way to save for your retirement
• Ability to meet the costs of children’s education
• To ensure you’re not paying too much tax!
• Taking control of what happens to your assets if you die

SMSF (Self Managed Super Fund)

SMSF (Self Managed Super Fund) mortgages are a unique lending facility that allows approved applicants to use their SMSF to borrow and invest in certain eligible real property assets including commercial offices, factories, shops, showrooms, warehouses and ‘approved’ residential properties. Access funds as they are required at the various stages of building.