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Finance and Lending

Optima Lending is a specialist lending firm, and the finance and lending arm of the Optima Group. Optima Lending bring broad experience and a practical approach to finance which assists clients obtain the best possible product to suit their needs. On top of this, the close integration of Optima Lending with the Accounting and Wealth Management experience of the Optima Group ensures that your loans and finance are structured as tax effectively as possible, and within the overall considerations of your tax and Wealth Management affairs.



Home Loans and Investment Loans

Standard variable home loan (with 100% offset)

Australia’s most popular type of loan. The interest rate varies throughout the term of the loan. The term is generally up to 25-30 years.

Pros:
  • When interest rates fall, repayments fall
  • You can make additional payments without penalty
  • Often has more features such as redraw facilities

    Cons:
  • When interest rates rise, so do your repayments
  • The extra features may cost you more

    Basic variable home loan

    Lenders now offer basic variable loans with lower interest rates, but with fewer features than a standard variable loan. The interest rates and repayments vary over the term of the loan.

    Pros:
  • Usually have a low interest rate
  • Repayments are also lower

    Cons:
  • May not offer the features or flexibility of other loans (not portable)

    Fixed rate home loan

    Fixed rate loans protect you against interest rate changes for an agreed time, so you have peace of mind knowing your repayments won't increase. However, you won't benefit if rates go down during the fixed term.

    Pros:
  • When interest rates rise, your repayments won’t

    Cons:
  • Reduced flexibility
  • Extra repayments can mean early repayment costs

    Introductory home loan

    The interest rate is usually low to attract borrowers. Also known as a honeymoon rate, this rate generally lasts only for around 12 months before it rises. Rates can be fixed or capped. Most revert to the standard rates at the end of the honeymoon period.

    Pros:
  • Usually the lowest available rates
  • When payments are made at the introductory rate, the principal can be reduced quickly
  • Some lenders provide an offset account against these loans

    Cons:
  • Payments usually increase after the introductory period

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    Lo-Doc Loans

    A low-doc or no-doc mortgage is ideally suited for investors or self-employed borrowers looking to refinance, purchase or renovate. No tax returns or financial reports are required.

  • Simple income declaration form
  • No tax return
  • No financial records
  • Fully serviceable loan options, redraws, line of credit, variable or fixed rates
  • Principal and Interest or Interest Only loans

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    Debt Consolidation Loan

    Combine all your loans into one. Rather than paying higher interest rates on credit cards a Debt Consolidation loan can combine all your loans into one and have the loan secured against a property which will enable a lower monthly repayment and a lower interest rate than what is payed on credit cards and personal loans.

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    Non-Conforming Loans

    People with poor credit ratings often have trouble sourcing a home loan. Many lenders now offer what are known as ‘non-conforming loans’ for people in this type of situation. While lenders are willing to overlook prior credit problems, they will want to see some evidence of your ability to repay the loan. A larger deposit than is required for traditional loans will generally be required also.

    Pros:
  • Overlooks poor credit rating

    Cons:
  • Higher interest rate than traditional loans

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    Line Of Credit ( LOC )

    This type of home loan revolves around credit secured against a residential property, allowing access to funds when needed. These products are creative ways to raise funds for investment by providing cash up to a pre-arranged limit.

    Pros:
  • Use the money you need and pay it back when you can
  • Interest rates tend to be lower than credit cards or personal loans

    Cons:
  • Possibly reduces equity in your residential property

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    Reverse Mortgages or Seniors Loan

    It is a loan to senior homeowners that allows them to access a portion of the equity value in their home. No repayments are required whilst the borrower(s) remains in their property. Interest and fees accrue on the loan and the loan is repayable in full when the last surviving borrower permanently vacates the home or the home is sold.

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    Business Loan

    With a Business Loan you can raise funds to either increase or expand your current business or purchase a new one. This can help establish a business or even purchase commercial property.

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    Development Finance

    Commercial or Residential this loan can help you realise your dreams. A development loan is traditionally for projects where two or more dwellings are to be built/developed.

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    Commercial Bills

    A Bank Accepted Bill facility assists customers in raising finance through the drawing and discounting of negotiable bank bills.

    The Bank as acceptor of the customer’s bill(s), undertakes to pay to the holder in due course the face value of the bill(s) at maturity. However, the Bank is not obligated to discount the bill(s) (i.e. the customer may obtain funds direct from the market).

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    Overdraft/Line of Credit

    A facility attached to a cheque account, which allows customers to have their account in debit to an approved amount.

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    Debtor Finance (Factoring)

    Debtor Finance is a trade business debtor facility which provides working capital funding linked to a business’ sales pattern. The Bank will purchase and discount the trade business debtors of incorporated businesses to provide funding of up to 80% of approved invoice face value.

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    Commercial Hire Purchase / Lease

    A business solution when vehicle / equipment ownership is important

    Asset-Hire Purchase is designed for business customers who ultimately want to own their vehicle / equipment at the conclusion of the contract term.

    Benefits:

  • Ownership of the vehicle / equipment at the end of the contract term
  • Little or no deposit required
  • Optional final balloon payment to reduce monthly instalments
  • Flexibility to vary the contract term
  • Available for both new and used vehicles / Equipment
  • May offer tax benefits

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    Asset Loan / Chattel Mortgage

    The benefits of vehicle / equipment ownership without the outlay

    With an Asset Loan - commonly referred to as a Chattel Mortgage – vehicle / equipment ownership is transferred to you at the commencement of your finance contract.

    Benefits:

  • Reduced monthly payments by varying the deposit Optional final balloon payment
  • Final balloon payment may be refinanced
  • OAvailable for both new and used vehicles / equipment
  • May offer tax benefits

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