PMG Line of Credit Home Loan
Review: PMG Line of Credit Home Loan
When you look for the perfect home loan there may be many different features and benefits you look for before making a decision.
In a world where everyone’s financial security is anything but certain, more consumers are looking for products that don’t just allow them to fund their property purchase, but ones that will also be there for them during times when money is tighter than normal.
Award winning mortgage provider The Pacific Mortgage Group has paid attention to the market’s growing demand for a home loan with a flexible line of credit and have brought out the PMG Line of Credit Home Loan.
So How Does This Product Work?
The great thing about this home loan is that it’s designed to suit virtually all home owners. It will suit first time buyers, property investors, and even those simply looking to refinance their home. So let’s look at the basics.
Loan amount- With the PMG Line of Credit Loan you’re able to borrow anything up to $2,000,000dollars. Of course like any financial product the amount you’re actually offered is going to depend greatly on your current financial position, as well as the results of a standard credit check.
The better your financial history the more you’re likely to be offered. Because of the importance placed on the credit checking process it would be strongly advisable for you to check out your own credit file in advance to ensure their are no errors. If there are you can fix them before you go through the application process.
LTV Ratio (Loan to value ratio) - The loan to value ration is the percentage of the property value that you can borrow against. The LTV with this product is 95%. For example if you had a property worth $200,000 dollars and you wanted finance for it you would be able to borrow $180,000. You would then have to come up with the other $20,000 yourself. If you are only borrowing up to 750k it’s possible to borrow up to 95% on the loan but this is a fairly risky strategy.
The higher the loan to value ratio is on a loan the more at risk you are from slumps in the property market. Many people were caught out during the worldwide recession of the last few years when they borrowed sometimes more than 100% of their property value. When the value of property went down many were left with properties in negative equity.
Loan term – This product let’s you pay over the course of 5 to 30 years meaning you have full flexibility over how much you pay back. Of course as with all loans the quicker you pay it off the more you’ll pay each month, however the smaller the amount of interest you’ll pay too.
Interest rate – The interest rate on this is variable meaning good times when the national rates are low, but possible monthly hikes in the event of a surge in rates. Whenever you take a variable product out, especially one as big as a home loan it’s well worth having some money put by just in case you are hit with a large monthly payment increase.
Fees – This is where things normally get pretty expensive but not with the Pacific Mortgage Group. With the Line of Credit loan there is no monthly or annual fee, nor transaction fees, no application fee, no settlement fee, and no valuation fee!
There’s nothing worse than adding an extra couple of thousand dollars to your loan before you get started and with this product you can apply knowing the money you borrow will be going straight towards what you need it for.
Easy Access
This is a loan that allows you to redraw against money you’ve already paid back in times of financial pressure so the more you pay back, the more you can borrow if you need to. The great thing is you can access your funds in a number of ways making it totally flexible.
You can get to your money by telephone banking, Internet banking, cheque book, and even ATM.
This really is an ideal product for those who want a home loan with the facility to redraw if necessary. Application is easy so why not head down to PMG and check them out.
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