Small loans that often do not qualify for other discount loan options
At Empire Financial Management Group, we have a number of basic variable rate products that may suit your needs.
Split Loans(top)
Split loans involve breaking your loan into 2 or more separate smaller loans (splits). This can be useful for keeping your personal and investment interest cost separate for taxation purposes. Some banks allow each split to be a different product type. For example you may have your home loan split across a fixed and variable product, an investment property with a basic variable split and a line of credit split for your business.
There are two reasons to consider a split loan. First, if you are concerned about interest rates you may want split your loan between fixed and variable products. Second, if you are borrowing for multiple purposes, then you may be prepared to endure a little more complexity to save some money.
Line of Credit or Equity Loans(top)
A Line of Credit (LOC) is like an overdraft that is secured against your property. LOC loans give you great flexibility and freedom in how you use your equity. They allow you to pay off as much (or as little) as you like each month, as long as you keep your loan balance below your approved limit. You can access unused equity by writing cheques or withdrawing from ATMs, just like a savings account. You only pay interest on your outstanding balance.
The drawback on a like of credit loan is that they usually have higher interest rates than other product options may be available to you. At Empire Financial Management Group, we can show you a number of options where you will be able to get the benefits of a Line of Credit loan, without having to pay the higher interest rates associated with the LOC.
Professional Packages(top)
Most banks have offered professional packages to members of certain professions, high income earners and large borrowers for many years. However, due to the increased competition in the finance industry, most banks are now offering their professional packages to all customers. The basis to be eligible for the professional package has therefore shifted simply to the amount being borrowed.
Professional packages vary from bank to bank but they commonly include such features as discounted interest rates and application fees, and credit card and insurance discounts. Most banks offer their regular range of loan products but with discounts on rates and fees, while some lenders have specific "professional" products.
At Empire Financial Management Group, we have a number of professional packages that start giving discounts from as little as $50,000 borrowed.
Low-Doc and No-Doc Loans(top)
Low-Doc lending is a relatively new area of the lending industry. Low-Doc loans are primarily aimed at self-employed people that do not have documents (pay slips, tax returns, etc) to prove their income to the banks. Thus these loans suit customers that have not completed their annual tax returns or customers that earn a lot of cash income that is not declared on their tax returns. Most banks will want to see proof that you have been operating your business for more than 2 years and ask for a signed declaration stating your income. The difference between a Low-Doc loan and a No-Doc loan is that on a No-Doc loan application, you do not have to state an income. Thus there are no tax implications as you are not declaring any income.
Some banks offer their normal product range and interest rates to low-doc borrowers but they will only lend 60% or 70% of the value of the property instead of the normal 80%-95%. Other banks will lend more money but they will compensate for their increased risk by charging a higher interest rate (1%-3% extra).
At Empire Financial Management Group, we have a number of Low-Doc and No-Doc products for all types of customers. Whether you are self-employed, PAYE, have an ABN or not, we can help you to get a Low-Doc or No-Doc loan.
Credit Impaired Loans(top)
Credit Impaired lending is another growing sector of the lending industry. In the past, if a customer had a poor credit history, then it was near impossible for the customer to get a loan as the major banks were not willing to take the risk. Today, there are some lenders that are specifically set up to lend to credit impaired customers. Even discharged bankrupts can get loans from this growing set of lenders. However, to compensate for the additional risk of lending to a credit impaired customers, lenders set the interest rates 1%-4% higher depending on the magnitude of the customer’s past problems.
At Empire Financial Management Group, we have a number of lenders prepared to lend to a history of credit issues. Many of our lenders’ products also allow borrowers with past credit issues to convert back to a standard rate after displaying the ability to stay out of credit issues for a period of time.
Non-Conforming Loans(top)
Non-conforming loans are any loans that do not fit into the ideal mould, demanded by the premium banks. The ideal mould dictates that loans should be for customers that have been in the same place of employment for several years and are looking to buy a residential property in a suburban part of a major metropolitan city, with at least 20% genuine savings. Of course, in today’s world, the ideal mould doesn’t fit many customers. Thus many lenders have started to look at loans that do not fit the ideal mould. In addition to Low-doc and credit impaired customers, other types of non-conforming loans includes:
Standard variable loans are the default loan package offered by the banks. These loans usually come with all of the extra features (internet access, offset accounts, etc) but the interest rates are not very competitive. It is rare that a standard variable loan is the best option for a customer but unfortunately this is the product that the banks have pushed onto most of their customers to maximize their own profits. 
Most lenders now offer special deals for new customers. These specials usually give a significantly discounted rate for the first 6 or 12 months of the loan term. This is called the "honeymoon" or "introductory" period. Most lenders are currently offering introductory rates that are set 1 - 1.5% below their standard variable rates for 12 months. Remember these rates are not simply for first home buyers, but rather any borrower taking a new loan with a new lender. At the conclusion of the honeymoon period the rates usually revert to the standard variable rate of the particular lender.