Loanopaedia

BidMyLoan is new, different and effective. We are serious about helping you get a better home loan and we work hard for that to happen.

Our lender panel is made up of international banks, Australian Banks, Credit Unions, non-bank lenders and mortgage managers. Some you will have heard of, others you won’t. All of our lenders we believe can offer great deals.

The reason you won’t have heard of some of our lenders is that they don’t have significant branch networks and don’t use brokers. They have reduced their costs by reducing their commission payments, which is why they can offer such good deals to you through BidMyLoan.

First homebuyer

Many lenders have products tailored to first homebuyers. This includes features to reduce the deposit necessary to start on the property ladder and honeymoon rates to ease the repayment burden initially. The BidMyLoan tools help you see how these features impact your loan and what the costs are throughout the loan period.

New Purchase

If you are moving home it may be possible to keep your existing homeloan and you should check with your lender as this may save you costs. However if you want to change lender or are seeking a better loan then BidMyLoan could help you.

Refinance

If you are looking to change your current lender then BidMyLoan provides you with access to some of Australia's most respected, competitive and highly regarded lenders. When refinancing your existing lender you will need to produce your property title document and advise the total payout sum, this can cause delays from time to time.

Investment Loans

If you are purchasing for investment there are loans especially for you. You can choose if you want the same lender for all your properties or if you wish to have a selection of lenders.

Construction Loans

are available from many lenders. The main difference is that the loan is drawn down as construction is progressed. Lenders may require an independent assessment of the progress prior to allowing a draw down on the loan.

Full doc loan

This is the most common type of loan suitable for those who are employees or who are self employed and can verify their income with tax returns. Considered the lowest risk, a full doc loan also typically attracts the lowest rates

Non-conforming loans

cover the needs of borrowers who do not fit the standard profile. This includes new arrivals to Australia, very large loans, investment loans secured by an asset only without income, and borrowers with an impaired credit history. A number of BidMyLoan lenders specialise in this area while most will also service some elements.

Examples of non conforming loans are:

Low doc loan

A loan suitable for self-employed people and others who don't have the traditional proof of income documents normally required. A self declaration of income is accepted instead.

No doc loan

A loan aimed at investors. Income is validated by the borrower providing an accountant's independent assessment

Non-resident loan

Designed specifically for Australians living overseas and suitable for those planning to return to or arrive in Australia in the future. BidMyLoan retains a number of lenders that specialise in these loans.

Standard variable

This is the most common form of loan account. The interest rate on this loan typically moves up and down in line with official interest rate fluctuations, so the rate may go up or down during the term of the loan. The features and rates vary by lender.

Basic loans

are typically the lowest ongoing rates available from lenders. These loans may have fewer features or may have additional fees to use some of the features. In selecting a basic variable loan you should ensure it has all the features required and consider carefully how you will use the facility.

Fixed-rate

A fixed-rate enables you to secure a certain interest rate which will not change for a fixed period of the loan. The features and flexibility of these products are generally limited as the certainty of payment amount means the ability to redraw or make additional repayments can be impeded. Once the fixed period has expired the loan becomes a variable rate loan. All loans provided by BidMyLoan clearly state the current variable rate that applies after the expiration of the fixed rate (all lenders rates may change over the period of the fixed rate).

Line of credit

Also referred to as a revolving line of credit or equity. This means you can withdraw funds from your home loan account up to a certain limit without the need for pre-approval. This is handy if you need money for home renovations, a holiday, or even a new car.

Product Features

Redraw

A facility to draw on additional funds, generally limited to any additional payments you have made. Some lenders may limit the number, the minimum amount or charge a fee for use.

Additional repayments

A feature which allows you to pay additional amounts enabling you to pay off your loan faster and reduce the total amount you should repay.

Payment holidays

A feature offered by lenders which allows you to take a break from making payment. Generally you will need to be ahead with your repayment schedule.

Honeymoon

A lower initial interest rate which makes the loan more affordable in the early stages.

Portability

A feature which enables you to retain your loan even if you move property.

Offset facility

A feature which allows you to set off deposits against your loans which may result in loan savings over time.


Payment types

Direct deposit

The preferred payment of many lenders, payments are automatically debited from your account.

Internet transfer

A facility that enables you to make payments online.

Bank deposit

This feature allows you to deposit the regular payment directly to the lender's account.

Payment frequency

Make payments at a frequency suitable for you - weekly, fortnightly or monthly.

Accessibility

Internet

Access your loan account online.

Phone

Access your account by phone, check your balance and make payments.

Branch

Access to a branch when and if you need it.

Personal

Access a dedicated individual allocated to assist you with your needs and who will continue to be available after your loan has settled.

Other

Full banking

If you wish to have all your banking with a single lender then select this option.

Multi service

Many lenders do not offer full banking but have some additional facilities such as a cheque book or credit card.

Lenders Mortgage Insurance (LMI) protects the lender in the case of a loan default. If your home is repossessed, and the subsequent sale proceeds are insufficient to cover the total amounts outstanding on the loan, the insurer will pay the shortfall to the lender.

The mortgage insurance company does have recourse against you, the original borrower and may pursue the debt if appropriate.

The LMI premium is a cost incurred when establishing the loan, and the premium is paid by the borrower. LMI is required at differing loan to valuation ratios depending on the particular product. Typically, once your loan exceeds 80% of the property value you will be required to pay mortgage insurance.

Interest

  • Standard Rate
  • Higher Rate

Loan fees & charges

  • Applications fees
  • Establishment fees
  • Valuation fees
  • Documentation fees
  • Discharge fees
  • Other fees

Contingent fees

  • Deferred establishment fees
  • Lenders mortgage insurance
  • Lenders equalisation fee
  • Penalty charges

Stamp Duty

  • On property purchase
  • On loan application

Solicitor fees

The above costs are merely an indication of some of the general costs that may be payable. The actual costs will vary depending on the type of loan you choose and your individual circumstance's.