Do You Need A Loan For Your Home Or Business?
Having your home or a flourishing business venture is a dream for many. Are you one of these aspirants? Is the lump sum amount of money required to fund your dreams bogging you down? You need a loan for your home or business whereby you will get the required money in exchange for smaller amounts of money from your end over some time. Canberra Mortgage Brokers are willing to help you out if you need a loan.
Home Loans And Commercial Property Loans
Home loans and commercial property loans charge you an extra amount evenly divided over some time for their on-the-spot help. The collateral that is in your possession is often decided upon. It is expensive and becomes the property of the lender in case you are unable to pay your promised sum timely.
Here is what you need to know about commercial or residential property finance:
Purpose Of The Loans
The loans can be taken under two broad heads- home loans and commercial loans. Home loans are money borrowed for either buying land, purchasing a flat, constructing a house, or renovating an existing house.
Commercial loans are taken to buy land for building an office, or for only constructing an office. It can also be used to buy machinery for executing your business idea.
You need to specify the cause of the loan clearly while applying for it.
Collateral For The Loan
Your existing possession which at least equals the amount of the loan can be kept as collateral. Or, you can enlist the property for which you are taking the loan as collateral. In case of bankruptcy, the collateral becomes the property of the lender. If the collateral is more expensive than the loan amount. An auction is conducted whereby the amount left after the deduction of loan money gets credited to your bank account.
Interest Rate And Tenure Of Repayment
The interest rate is higher and the tenure of repayment is less in the case of commercial loans. There are two kinds of interest rates offered by lenders:
- Fixed Interest Rate: You need to pay an even sum of money monthly.
- Variable Interest Rate: If the interest rate on a specific loan changes in the future, due to a continuous rise or fall in the economy. There will be an equivalent change to all the sums of money needed to pay from that time frame onwards.
Types Of Lenders
- Direct Lenders: They finance the loan amount themselves to help you after all the paperwork is complete.
- Mortgage Brokers: These organizations are connected to many lenders. They send your loan application to various lenders and handpick the lenders giving you a good deal. Canberra Mortgage Brokers is one such example.
Canberra Mortgage Brokers connect you with the best lenders expecting comparatively lesser interest on your loan amount. The service is conducted by these brokers for the borrowers. They get the same amount from the lenders in case a deal happens because of them. Thus, you are assured of getting a biased-free deal, keeping just your finances in mind. Avail the benefit as soon as possible to give flight to your ambitions!
Before getting into the loan application process, get a regular stream of income in hand which can solely be used to pay back your loan amount. This will enable you to get through the loan process.