Let us help you find your way home.

Variable interest rates prevail in Australia, with lenders dictating both initial and ongoing rates. The Reserve Bank of Australia (RBA) influences this dynamic by setting the official cash rate, impacting lenders' costs. Although lenders typically adjust rates in response to RBA shifts, market competition often maintains rate stability.

Variable rate loans, available through GM Financial, offer flexibility without penalties for additional repayments, potentially allowing for early loan payoff. However, they entail risk; decreasing interest rates reduce repayments, while increasing rates raise them.

In Australia, two variable rate home loan options are accessible through GM Financial:

Basic Variable Rate Home Loan: GM Financial offers a Basic Variable rate home loan, boasting one of the country's lowest rates. Designed for simplicity, this option suits clients prioritizing minimum payments or adhering to fixed budgets. Interest rates may vary with market changes.

Standard Variable Rate Home Loan: GM Financial's Standard Variable Rate Home Loans, a popular choice, offer flexibility and features such as offset accounts and extra repayments. Rates mirror market fluctuations, affecting repayment amounts accordingly.

On a fixed-rate loan, the interest rate remains constant throughout the fixed term, unaffected by changes in variable market rates. Lenders offer fixed rates that may be higher or lower than prevailing variable rates, necessitating a comparison before choosing. Fixed-rate loans typically span 1 to 5 years, with rates reverting to variable at term end unless renewed.

Fixed-rate loans suit borrowers seeking budget predictability, ensuring consistent home loan repayments over the fixed period. Shielded from variable rate increases, borrowers may find fixed rates more cost-effective than variable ones.

However, fixed-rate loans offer no benefit if variable rates decrease, maintaining the same rate throughout. Over time, fixed rates may exceed prevailing variable rates, potentially resulting in higher costs. Additionally, limitations often apply to extra repayments, and premature loan payoff during the fixed period may incur substantial break costs.

Many lenders offer the option of a split loan, allowing borrowers to divide their loan into portions with different rate structures: one on a variable rate and the other on a fixed rate. Often, borrowers opt for a combination of fixed and variable rate products to enjoy the benefits of both: flexibility with a variable rate and security with a fixed rate.

A split loan provides the advantage of hedging your bets, offering peace of mind amidst uncertainty. This approach shields borrowers from potential rate rises affecting the entire loan amount. Additionally, it allows for extra payments and the utilisation of offset account features on the variable portion of the loan, adding flexibility and potential interest savings.

The principal and interest loan is the most common type, where repayments cover both interest and loan principal over the loan's duration. In contrast, interest-only loans explicitly cover only the interest, leading to lower repayment requirements. These loans are favoured by investors seeking long-term flexibility rather than swift loan repayment. During the interest-only period, the home loan balance remains unchanged as no principal reduction occurs, reverting to principal and interest at the fixed term's conclusion.

Typically unsuitable for owner-occupier home buyers, interest-only payments fail to build home equity. However, they may opt for this option during financial hardships for short-term relief.

Advantages include lower repayments, offering flexibility for renovations, property improvements, or personal finances. However, interest-only loans prolong loan repayment as the balance remains unpaid, and lenders often impose special conditions, such as limited terms and availability for investment properties only.

A non-conforming loan diverges from conventional lending norms, accommodating borrowers with unique financial circumstances. Unlike standard loans, which adhere to strict eligibility criteria, non-conforming loans offer flexibility tailored to individual needs.

These loans cater to borrowers who may not meet traditional lending standards due to factors like irregular income, imperfect credit history, or unconventional property types. While they may pose higher risk to lenders, non-conforming loans provide an alternative avenue for borrowers to access financing when conventional options are unavailable.

Characterized by their adaptability, non-conforming loans offer tailored solutions to suit diverse financial situations. They may feature adjustable interest rates, alternative documentation requirements, or unique repayment terms designed to accommodate the borrower's specific needs.

While non-conforming loans may have higher interest rates or stricter terms compared to conventional loans, they serve as a lifeline for borrowers navigating unconventional financial circumstances. With GM Financial, borrowers gain access to a range of non-conforming loan options, providing the flexibility needed to achieve their financial goals, regardless of their unique circumstances.

GM Financial facilitates access to versatile Line of Credit products, also known as Equity Lines or Revolving lines of credit, allowing clients to pay interest solely on funds utilised.

These flexible options leverage property equity to provide a readily available source of funds, customizable to individual needs and up to predetermined limits. Similar to credit cards, any repaid principal becomes available for redraw, offering convenience and flexibility. Accessing funds is typically via cheque or debit card, with no fixed principal requirements, granting clients the freedom to adjust repayments based on their financial situation, as long as monthly interest, fees, and charges are met.

These loans cater to investors seeking quick access to funds and high-income earners aiming to expedite home debt reduction. While Line of Credit products generally carry slightly higher interest rates than traditional home loans, they offer unparalleled flexibility and convenience for clients with diverse financial needs. As a brokerage firm, GM Financial assists clients in accessing and navigating these products to achieve their financial goals effectively.

Consolidation Loans merge various debts, such as credit cards, personal loans, or car loans, into one, typically at a lower interest rate than individual loans. This consolidation not only streamlines payments but also enables clients to benefit from the lower interest rates associated with home loans.

By consolidating debts into a single loan, clients can free up extra cash, accelerate loan repayment, or opt to shorten the loan term by making higher repayments. Consolidation Loans offered through GM Financial can be variable, fixed, or a line of credit, providing flexibility to suit individual financial preferences and circumstances.

GM Financial provides construction loans tailored to the needs of first home buyers, current homeowners, and investors.

To initiate a construction loan, you'll need to furnish a contract for the purchase of the vacant land, a fixed-price construction contract, and council-approved plans outlining the full cost of your home's completion. Lenders assess your loan application based on the anticipated value of your home upon completion.

Throughout the construction phase, lenders conduct site inspections before disbursing funds to the builder on your behalf. Interest accrues only on the loan amount utilized and paid to the builder at each construction stage. Upon project completion, your loan transitions to standard monthly payments.

While most lenders typically offer variable rates for construction loans, GM Financial can assist in sourcing fixed-interest construction loans tailored to your needs.

A bridging home loan is an ideal solution for borrowers aiming to purchase a new property before selling their current one. It's also beneficial for those planning to finance the construction of a new home while residing in their current property, eliminating the need to sell before construction.

A bridging home loan offers the flexibility and support needed for smooth property transitions. Whether you're upgrading to a new home or constructing one while still living in your current residence, our bridging loan solution enables you to avoid the inconvenience of renting during construction.

With a bridging home loan, borrowers typically have up to 12 months to sell their existing property. Both properties serve as security, providing lenders assurance. Typically, lenders offer a standard variable rate for this type of loan, ensuring competitive terms and flexibility for borrowers throughout the transition period. Trust GM Financial to bridge the gap between your property transactions with ease and confidence.

Low Doc home loans cater to self-employed individuals with unique financial circumstances that make income verification challenging. If you're a business owner lacking traditional proof of income documents like financial statements and tax returns, you may still qualify for a low doc loan.

Low Doc Home Loans are tailored for self-employed individuals in various situations:

1) Self-employed: Whether you're a freelancer, contractor, or small business owner, a low doc loan accommodates your self-employment status.

2) Financials not yet done: If your financial statements or tax returns are not yet finalised, low doc loans offers a solution without the need for extensive documentation.

3) Short-term self-employed: If you've recently transitioned to self-employment, our low doc loan provides financing options tailored to your evolving financial circumstances.

While low doc loans require fewer income verification documents compared to full doc loans, you'll still need to provide the lender with a statement or other documents confirming your income. Additionally, you'll need to demonstrate your ability to meet loan repayments. These loans typically carry higher interest rates and lower Loan Valuation Ratios (LVRs) than traditional loans. However, at GM Financial, we work to source competitive low doc loans that match the affordability and flexibility of standard full doc loans, ensuring that self-employed borrowers can access the financing they need with ease.
To initiate a construction loan, you'll need to furnish a contract for the purchase of the vacant land, a fixed-price construction contract, and council-approved plans outlining the full cost of your home's completion. Lenders assess your loan application based on the anticipated value of your home upon completion.

Throughout the construction phase, lenders conduct site inspections before disbursing funds to the builder on your behalf. Interest accrues only on the loan amount utilized and paid to the builder at each construction stage. Upon project completion, your loan transitions to standard monthly payments.

While most lenders typically offer variable rates for construction loans, GM Financial can assist in sourcing fixed-interest construction loans tailored to your needs.

Despite the challenges associated with obtaining a home loan as a pensioner, GM Financial specializes in providing solutions tailored to clients in this situation.

Pensioners may face hurdles due to perceived risk by lenders, potentially limiting the amount of funds they can borrow or the types of loans available to them. However, GM Financial works to overcome these obstacles, offering a range of home loan options designed to meet the unique needs of pensioners.

Our offerings include specialised products such as reverse mortgages, line of credit home loans, and investment loans, providing flexibility and accessibility to clients in diverse financial situations. With GM Financial, pensioners can navigate the complexities of home financing with confidence, knowing they have a dedicated partner committed to finding solutions that work for them.