By Mary Nebotakis, B. Eco, Dip. Financial Services

When it comes to borrowing money – especially for property purchases or business finance -using a trust structure can offer flexibility, asset protection, and tax advantages. However, trusts can also complicate the lending process, and not all structures are acceptable to lenders.

In this article, we explain the different types of trusts commonly used when applying for finance, who may need to act as a guarantor, and what trust structures lenders typically reject. Whether you’re an investor, business owner, or adviser, understanding these factors is crucial before you apply.

Types of Trusts Used in Lending

Lenders in Australia generally accept a range of trust structures, but each comes with specific documentation and assessment criteria. The main types of trusts used when borrowing money are:

1. Discretionary Trust (Family Trust)

A discretionary trust – often referred to as a family trust- is one of the most common structures for property investors and business owners. In this setup, a trustee (either an individual or a company) manages the assets of the trust on behalf of a group of beneficiaries. The trustee has discretion over how income or capital is distributed among beneficiaries.

Why it’s used:

· Asset protection

· Tax planning

· Succession planning

Lender considerations:

Most lenders will assess the trust’s financial position along with the personal financials of the trustee or guarantor. The loan application will require a full copy of the trust deed and identification of beneficiaries and appointors.

2. Unit Trust

In a unit trust, beneficiaries (called unit holders) have fixed entitlements to income and capital based on the number of units they hold – like shareholders in a company.

Why it’s used:

· Ideal for joint ventures or unrelated parties investing together

· Clear ownership proportions

Lender considerations:

Lenders assess both the trust and each unit holder’s financial position. The fixed entitlement structure makes this more transparent for credit assessment, but it still requires detailed documentation.

3. Hybrid Trust

Hybrid trusts combine features of both discretionary and unit trusts, allowing fixed entitlements alongside discretionary income distribution.

Why it’s used:

· Flexibility in income distribution

· Structured ownership (via units)

Lender considerations:

Fewer lenders accept hybrid trusts due to their complexity. Some banks will flat-out decline these applications or require significant additional documentation. It’s essential to speak to a broker who understands which lenders can accommodate this structure.

Who Needs to Be a Guarantor?

When a trust applies for a loan, lenders typically require additional security in the form of a personal or corporate guarantor. This is because the trust itself is not a legal person—it can’t be sued or held liable in the same way an individual or company can.

The following parties are generally required to be guarantors:

· Individual trustee(s): If the trustee is an individual, they must personally guarantee the loan.

· Directors of a corporate trustee: If a company acts as trustee, directors are usually required to provide personal guarantees.

· Major beneficiaries or unit holders: In some cases, particularly for unit trusts or where there are high-risk lending factors, major beneficiaries may also be required to guarantee the loan.

Guarantees help the lender reduce their risk by ensuring someone with assets and income is personally responsible for the debt if the trust cannot meet repayments.

What Trust Structures Are Unacceptable to Lenders?

While many trusts are accepted with the right documentation, some structures raise too much complexity or risk for most lenders. These may include:

❌ Blind Trusts or Trusts with Undisclosed Beneficiaries

Lenders require transparency. If the beneficiaries or appointors of a trust are not clearly named or identifiable, the trust is unlikely to be accepted.

❌ Foreign Trusts

Trusts established overseas or with foreign beneficiaries and trustees are often deemed too high-risk or difficult to verify.

❌ Trusts with Complex Vesting or Amendment Clauses

If the trust deed contains clauses that make it hard to determine who controls the trust or when assets vest, many lenders will avoid them.

❌ Hybrid Trusts (in some cases)

Due to inconsistent income entitlements and more complex tax treatment, many lenders place hybrid trusts in the “too hard basket.” However, specialist lenders may still consider them.

Final Thoughts

Using a trust can be a smart strategy when structuring your finances – but it’s not one-size-fits-all. Each trust type has its own legal, tax, and lending implications, and lenders will always want clarity on who controls the trust, who benefits, and who can guarantee the loan.

Before applying for finance through a trust, speak with your broker, accountant, and legal adviser. At Natloans, our experienced team works closely with your professional partners to ensure the loan is structured right from the start- and matches your long-term goals.

Need help financing through a trust?

Contact the team at Natloans today for expert guidance and access to over 50 leading lenders.

Click here and we can set up a suitable time for a free consultation.

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

Buying a home is one of the most exciting — and significant — financial decisions you’ll ever make. But before you start attending open inspections or putting in offers, there’s one smart step that can make the process smoother and give you a real advantage: getting a home loan pre-approval.

At Natloans, we help Australians secure the right finance for their property goals. Here’s a clear guide to understanding what a pre-approval is, why it matters, and how to get one.

What is a Home Loan Pre-Approval?

A home loan pre-approval — sometimes called conditional approval or approval in principle — is an indication from a lender that you’re eligible to borrow up to a certain amount for a home loan, based on a preliminary assessment of your financial situation.

It’s not a formal loan contract, but it’s a very useful signal of how much you can likely borrow. Most pre-approvals are valid for 60 to 90 days and are subject to conditions, such as a satisfactory property valuation and no major changes to your financial circumstances.

Why Should You Get Pre-Approved?

1. Know Your Budget

Pre-approval gives you clarity on how much you can borrow, so you know what properties are realistically within your price range. This helps narrow your search and avoid wasting time on homes outside your borrowing power.

2. Strengthen Your Offer

In a competitive property market, a pre-approval can make your offer more appealing to sellers and agents. It shows you’re a serious buyer with your finances in order and can move quickly when needed.

3. Negotiate With Confidence

Knowing your borrowing capacity lets you negotiate confidently. Whether you’re bidding at auction or making a private offer, you’ll know your upper limit and avoid overcommitting.

4. Spot Issues Early

Pre-approval can highlight potential issues before you find your dream home — like a low credit score, missing documentation, or unstable income. Fixing these early can help avoid delays later in the buying process.

What’s Involved in Getting Pre-Approved?

Applying for pre-approval is like applying for a home loan but with less pressure, as you are getting this sorted, before you start looking. At Natloans, we make the process simple, fast, and obligation-free.

Here’s what you’ll typically need to provide:

• Proof of Identity – Such as your driver’s licence and passport
• Income Verification – Recent payslips or tax returns if you’re self-employed
• Asset & Liability Information – Details about savings, credit cards, loans, or other assets
• Living Expenses – A breakdown of your regular expenses

Once submitted, we’ll work with our panel of over 50 lenders to find the right pre-approval option for your goals. Our experienced brokers handle the legwork and keep you updated every step of the way.

What Happens After You’re Pre-Approved?

With a pre-approval in hand, you can confidently attend inspections, make offers, or bid at auction. Just remember — pre-approval doesn’t mean guaranteed approval. Once you’ve found the right property, the lender will still need to conduct a full assessment, including:

• A valuation of the property
• A final review of your financial situation
• Confirmation that you meet any remaining loan conditions

As long as nothing material has changed, the transition from pre-approval to full approval is usually straightforward.

Ready to Get Pre-Approved?

At Natloans, we’ve helped thousands of Australians get pre-approved for their home loans — and we’re here to help you too. Whether you’re a first home buyer, upgrading, or investing, getting pre-approved is a smart first step that sets you up for success.

Contact us today for an obligation-free chat, and let’s take the first step towards your property goals — with confidence.

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

If you’re a first-time home buyer in Australia, 2025 brings promising developments to help you step onto the property ladder.

With the Labor government’s proposed expansion of the First Home Buyer Guarantee, purchasing your first home could become more attainable. Here are five top finance tips to guide you through this journey:

1. Leverage the Expanded First Home Buyer Guarantee

The Labor government plans to extend the First Home Buyer Guarantee, allowing all first-time buyers to purchase a home with just a 5% deposit, without paying Lenders Mortgage Insurance (LMI). Previously, this scheme was limited by income caps and availability, but the proposed changes remove these restrictions, making it accessible to a broader range of buyers . This expansion could save you thousands in LMI costs and reduce the time needed to save for a deposit.

2. Understand the Proposed $10 Billion Housing Investment

In addition to the Guarantee expansion, the Labor government has committed $10 billion to construct up to 100,000 homes exclusively for first home buyers. This initiative aims to increase housing supply and provide more affordable options for new buyers. Keeping an eye on these developments could present opportunities to purchase a home tailored for first-time buyers.

3. Assess Your Financial Readiness

Before diving into the property market, evaluate your financial situation. Ensure you have a stable income, manageable debts, and a clear understanding of your budget. Use online calculators to estimate your borrowing capacity and potential repayments. Being financially prepared will position you to take full advantage of the available schemes and make informed decisions.

4. Explore Additional Government Schemes

Beyond the First Home Buyer Guarantee, other programs can assist you:

· First Home Owner Grant (FHOG): A one-off payment to help with the purchase or construction of a new home.

· First Home Super Saver Scheme (FHSSS): Allows you to save for a home deposit within your superannuation fund, benefiting from concessional tax treatment.

· Help to Buy Scheme: A shared equity initiative where the government contributes up to 40% of the purchase price for new homes, reducing your loan and deposit requirements

Investigate these options to determine which align with your circumstances and can further ease your path to home ownership.

5. Seek Professional Advice

Navigating the property market can be complex. Engaging with mortgage brokers, financial advisors, or real estate professionals can provide personalised guidance. They can help you understand the nuances of various schemes, assess loan options, and ensure you’re making decisions that align with your long-term financial goals.

At Natloans, we’re committed to supporting first-time home buyers through every step of the journey.

With the evolving landscape of government initiatives in 2025, now is an opportune time to explore your options and take confident strides toward owning your first home.

For more information, check out our First Home Buyer page here, and download our FREE First Home Buyer Guide here.

Or, call us on 1300 955 791 or contact us here, to make your first home dream a reality!

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

As we enter 2025, many Australians are asking the same question: is now the right time to invest in property? The answer, as always, depends on timing, research, and strategy — but there are compelling indicators that suggest this year could offer significant opportunities for smart, well-prepared buyers.

Why Understanding Your Borrowing Power Matters

Before stepping into the property market, understanding your borrowing capacity is crucial. This isn’t just about how much the bank will lend you — it’s about how much you should borrow, based on your unique financial position, goals, and appetite for risk.

At Natloans, we help clients assess their borrowing power through detailed analysis, incorporating factors like:

• Current income and expenses

• Investment objectives

• Risk tolerance

• Future financial goals

Using advanced calculators and personalised guidance, we ensure our clients are empowered with the knowledge and strategy they need to make confident decisions.

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Key Property Market Trends Heading into 2025

The property market in 2024 was marked by sharp contrasts and shifting momentum. As we move into 2025, several forces continue to shape the landscape for investors.

1. Interest Rates

Since 2022, the Reserve Bank of Australia (RBA) has implemented multiple rate hikes to curb inflation. While higher interest rates can challenge borrowers, they also cool overheated markets — creating windows of opportunity for buyers with strong strategies and flexible finance.

2. Population Growth

Immigration-driven population growth is boosting demand for housing, particularly in capital cities. With infrastructure under pressure and more people competing for places to live, rental markets remain tight — a clear advantage for property investors.

3. Rental Vacancy Rates

According to SQM Research, vacancy rates remain at historic lows in most cities:

Lower vacancy means higher competition for rental properties — and correspondently higher rent.

4. Housing Supply Shortages

Despite strong demand, new housing supply remains limited. Builders face rising costs, supply chain delays, and planning constraints — all of which reduce new stock coming to market. For existing homeowners and investors, this imbalance drives up both prices and rental yields.

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Where Are the Opportunities?

Data from CoreLogic shows that while cities like Sydney, Brisbane, Adelaide, and Perth reached record dwelling values by late 2024, others like Melbourne and Hobart saw modest declines — potentially positioning them for future growth.

Spotlight on Melbourne

Melbourne may be one of 2025’s most promising investment destinations. Here’s why:

• Population Surge: Now Australia’s largest city again, with over 5.3 million residents.

• Market Cycle Timing: Experts suggest Melbourne may be nearing the bottom of its cycle — a critical point for value buyers.

• Long-Term Growth Trends: Suburbs such as Darebin have a history of doubling in value multiple times over past decades.

• Supply Shortages: Like other capitals, Melbourne is grappling with limited new supply and rising demand.

With the right timing and strategy, Melbourne may present significant upside potential for investors with a long-term view.

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Average Weekly Rental Costs by City (2024 Data)

Source: ABS, Domain Research

These rental figures, paired with low vacancy rates, show why residential property continues to be a compelling asset class.

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Tips for Property Investment Success in 2025

1. Focus on Fundamentals
   Look for areas with strong infrastructure, employment hubs, and population growth.

2. Do Your Research
   Data-backed decisions are far more reliable than emotional or speculative buys.

3. Get the Right Advice
   Partner with a finance expert who understands investment property and can tailor a solution to your situation.

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How Natloans Supports Smart Property Investors

At Natloans, we offer more than just financing. We help our clients develop a full-spectrum investment strategy, including:

• Tailored loan solutions for investors

• Access to competitive rates and flexible terms

• Free property reports and insights

• Budget planning tools and calculators

• Expert advice on maximising borrowing power

• Ongoing support for portfolio growth

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Thinking About Investing in 2025?

If you’re considering stepping into the property market this year — or expanding your existing portfolio — now is the time to seek expert guidance.

Whether you’re a seasoned investor or just getting started, we’re here to help you unlock your financial future with confidence.

Call us today on 1300 955 791
Or explore our resources and tools to get started online.

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

An offset account can be a powerful financial tool to help homeowners reduce the interest they pay on their home loan while giving them access to their savings. If you’re looking for ways to save thousands of dollars in interest and pay off your mortgage sooner, this could be the solution for you.

In this article, we’ll cover what a 100% mortgage offset account is, how it works, and the key benefits it offers to homeowners.

What Is an Offset Account?

An offset account is a transaction or savings account that is linked to your home loan. The balance in your offset account directly reduces (or offsets) the amount of your mortgage on which interest is calculated. This means that instead of earning interest on your savings (which is often low and taxable), you reduce the amount of interest you pay on your home loan.

Unlike a partial offset account, which only offsets a portion of your home loan balance, a 100% offset account means every dollar in your offset account works to reduce the interest payable on your mortgage.

How Does an Offset Account Work?

Here’s how an offset account operates in simple terms:

1. Your home loan balance and offset account balance are linked. For example, if you have a $400,000 home loan and $30,000 in your offset account, interest is only charged on $370,000 instead of the full $400,000.

2. Interest is calculated daily. The amount in your offset account reduces the principal amount used to calculate interest on your loan each day, which can lead to significant savings over time.

3. You have access to your money. Unlike extra repayments on your mortgage, which can sometimes be difficult to withdraw, funds in an offset account remain accessible, just like a regular transaction account.

How Offset Accounts Work  

Effectively using can offset account can result in thousands of dollars in interest savings over the life of the loan and help you pay off your home loan sooner.

 

You can see in the example above just how much interest can be saved on a loan of $400,000.  

 

With larger loans and larger balances in an offset account the potential savings are magnified. 

Key Benefits of an Offset Account

1. Reduce Interest Payments

By lowering the loan balance on which interest is charged, you can save thousands of dollars over the life of your mortgage. The more you keep in your offset account, the less interest you pay.

2. Pay Off Your Home Loan Sooner

Since less interest is being charged, more of your repayments go towards reducing the principal balance, helping you clear your mortgage faster.

3. Access to Your Savings Anytime

Unlike making extra repayments directly to your home loan, which may require approval or a redraw process to access, funds in an offset account are always available when you need them.

4. Tax Efficiency

Interest earned on savings is taxable, but when you use a 100% offset account, you effectively ‘earn’ the same benefit in interest savings without being taxed.

5. Flexibility for Future Investments

An offset account allows you to keep savings aside for future investments or expenses while still maximising mortgage savings. This can be particularly useful if you plan to buy an investment property or start a business.

Are Offset Accounts Worth It?

An offset account is ideal for homeowners who have savings that they want to use efficiently without locking them into the mortgage. It is particularly beneficial for those who:

· Want to save on interest and pay off their loan faster

· Need easy access to their money for emergencies or future investments

· Have a variable-rate home loan (as offset accounts are often not available on fixed-rate loans)

· Are looking for a tax-effective way to manage their finances

If you’re unsure whether an offset account suits your situation, speaking with an experienced mortgage broker can help you assess your options.

Final Thoughts

An offset account is a smart financial strategy that can help you save thousands in interest and pay off your home loan sooner. By using your savings to reduce the interest charged on your mortgage, you can enjoy greater financial freedom while maintaining easy access to your funds.

Looking to explore how an offset account could work for you?

Contact Natloans today and let our expert brokers guide you towards a smarter home loan strategy.

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

Big news for first-home buyers in Queensland!

From 1 May 2025, the Queensland government will abolish stamp duty on new homes for eligible first-time buyers. This game-changing initiative is set to make homeownership more affordable for first-home buyers looking to buy or build a new home, potentially saving buyers thousands of dollars.

What Is Stamp Duty and Why Does Its Abolition Matter?

Stamp duty, also known as transfer duty, is a tax paid when purchasing property. In Queensland, this fee can add up to thousands of dollars, increasing the upfront cost of buying a home.

By scrapping stamp duty for first-home buyers on new builds and vacant land, the government aims to reduce financial barriers and help more people enter the property market. This policy applies regardless of property value, making it an attractive opportunity for those looking to buy in urban areas or invest in a more spacious suburban home.

Who Qualifies for the Stamp Duty Exemption?

To be eligible for the stamp duty waiver, you must:

• Be a first-home buyer in Queensland.
• Purchase a brand-new home to live in or vacant land on which to build your first home.
• Intend to occupy the property as your principal place of residence.

This policy is designed to boost the construction industry while helping first-home buyers secure modern, energy-efficient homes. However, it does not apply to existing homes, encouraging buyers to invest in new builds.

How Much Could You Save?

The savings will depend on the property’s value, but the impact is significant. For example:

• On a $600,000 house-and-land package, stamp duty would typically be around $9,000. Under this new policy, you could save this entire amount.
• Purchasing vacant land to build on? Your savings could be even greater, depending on the total value of the completed property.

At a time when cost-of-living pressures are high, these savings can make a real difference for first-time buyers trying to break into the market.

Why Now Could Be a Great Time to Buy

The stamp duty abolition comes at a time when borrowing conditions are improving. A recent interest rate cut by the Reserve Bank of Australia—the first since November 2020—has reduced mortgage repayments, making homeownership more affordable.

With lower borrowing costs and government incentives stacking up, experts predict a surge in demand for new homes. Acting early could give you an advantage before property prices respond to this increased demand.

Other Incentives Available for First Home Buyers

The stamp duty exemption isn’t the only financial boost for first-home buyers. You may also be eligible for:

• First Homeowners Grant: A $30,000 grant for buying or building a new home in Queensland for contracts signed between 20 November 2023 and 30 June 2025. After 30 June 2025, the grant amount will revert to $15,000.
• First Home Guarantee: A government-backed scheme allowing eligible buyers to purchase a home with just a 5% deposit, avoiding lenders’ mortgage insurance.

When combined, these incentives significantly lower the cost of buying your first home, making it more attainable than ever.

How to Prepare for This Opportunity

If you’re considering buying your first home, now is the time to start preparing. Here’s how you can get ahead:

• Get pre-approved for a home loan: With increased demand expected, securing your finances early can help you act quickly.
• Understand your eligibility: Know which government incentives you qualify for so you can maximise your savings.
• Plan your purchase: Whether you’re looking at a house-and-land package, an off-the-plan apartment, or vacant land, having a strategy will put you in the best position.

How Natloans Can Help

At Natloans, we’re committed to helping first-home buyers navigate these exciting changes. Our expert team can:

• Guide you through the eligibility requirements for the stamp duty waiver and other incentives.
• Help you combine multiple government schemes to maximise your savings.
• Find the best mortgage rates tailored to your financial situation.

Don’t Miss Out – Start Your Journey Today

With interest rates just reduced for the first time since November 2020 and government incentives making homeownership more affordable, now could be the right time to act.

Whether you’re buying a brand-new home, securing land to build on, or exploring your loan options, Natloans is here to support you every step of the way.

Are you a First Home Buyer in Queensland, contact us today to find out if you qualify:

???? Call us at: 1300 955 791
???? Email us at: homeloans@natloans.com.au

Your dream home could be closer than you think – let’s make it a reality!

How You Can Pay Off Your Loan Sooner and Save Thousands

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

On February 19, 2025, the Reserve Bank of Australia (RBA) made a crucial decision to reduce the official cash rate by 0.25%. For many Australian homeowners, this means their mortgage interest rates will also decrease. While the natural reaction might be to reduce repayments and enjoy extra cash flow, there’s a smarter move that could save you years on your loan and tens of thousands of dollars in interest.

By keeping your repayments at the same level despite the rate cut, you can dramatically shorten your loan term and build equity faster. Let’s break it down with real numbers.

The Power of Keeping Your Repayments Steady

Imagine you have a $500,000 home loan with a 30-year term at an interest rate of 6.25% per annum. Before the rate cut, your monthly repayment would be approximately $3,062.

Now, after the RBA’s 0.25% rate reduction, your lender lowers your interest rate to 5.95% per annum. If you chose to reduce your repayments in line with this new rate, your new monthly payment would be lower.

But here’s where the magic happens: instead of lowering your repayments to the new minimum monthly repayment of $2,982, you keep them the same at $3,062 per month.

Note: The information provided by the calculator is intended to provide illustrative examples based on stated assumptions and your inputs. Calculations are meant as estimates only and it is advised that you consult with a mortgage broker about your specific circumstances. Financial Calculators © Vision Abacus Pty Ltd 2025

The Results

By keeping your repayments unchanged, you would:
✅ Pay off your mortgage 2 years sooner
✅ Save approximately $75,000 in interest over the life of the loan

That’s two years of mortgage-free living and a massive reduction in interest costs – all without spending a cent more than you already budgeted for!

Why This Strategy Works

This approach works because your extra payments directly reduce the principal balance of your loan, rather than just covering interest. As a result:

• More of your payment goes toward the loan itself – shrinking your balance faster.
• You reduce the overall amount of interest paid, since interest is charged on a smaller balance over time.
• You build home equity faster, giving you more financial flexibility down the track.

The Bigger Picture: Long-Term Financial Benefits

1. Less financial stress later on – The sooner you pay off your mortgage, the more financial freedom you’ll have in retirement.
2. More borrowing power – A smaller loan balance improves your credit position if you ever need to refinance.
3. Flexibility when needed – By getting ahead on your loan, you create a buffer in case of unexpected financial changes. Extra repayments can then be accessed through available redraw

What Should You Do Next?

If you’re unsure whether this strategy is right for you, or you’d like to explore other ways to get ahead on your home loan, Natloans can help.

Our expert mortgage brokers can:
✔ Assess your current home loan and help you optimise your repayments
✔ Compare refinancing options to ensure you’re getting the best deal
✔ Develop a plan to help you become mortgage-free sooner

Take Action Today

With interest rates dropping, now is the perfect time to take control of your financial future. Contact Natloans today to discuss your options and start making the most of lower rates!

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

In today’s competitive Australian property market, traditional bank financing isn’t always the ideal solution for every borrower. Private mortgages and non-bank lending have become increasingly popular alternatives, offering valuable solutions for those who may not fit conventional lending criteria or need rapid property funding.

Understanding Private Mortgages

Private mortgages, also known as private lending, non-bank loans, or alternative property finance, are loans provided by private individuals or specialist lending companies rather than traditional financial institutions like the Big Four banks or credit unions. These loans are secured by real estate, making them an attractive option for both lenders and borrowers in the Australian market.

How Private Mortgages Work

Unlike conventional mortgages, private mortgages operate on a more flexible lending model. The private lender evaluates the property’s value and potential rather than focusing primarily on serviceability or strict lending criteria. This security-focused approach often results in faster approvals and more adaptable terms, particularly valuable in Australia’s dynamic property market.

Key Benefits of Private Mortgages

1. Rapid Approval Process

Private mortgages typically offer significantly quicker approval times compared to traditional bank mortgages. While bank loans might take 4-6 weeks to process, private funding can often be approved within days, perfect for time-sensitive property opportunities.

2. Flexible Lending Criteria

Private lenders can be more accommodating with their requirements. They may consider applications from:

• Borrowers with impaired credit
• Self-employed individuals with complex tax structures
• Property developers and investors
• Foreign buyers and temporary residents
• Those with ATO debt or previous defaults

3. Customisable Terms

Private mortgage terms can be tailored to meet specific borrower needs, including:

• Interest-only payments
• Shorter loan terms
• Flexible repayment schedules
• Creative deposit solutions
• No mortgage insurance requirements

Common Use Cases in Australia

Private mortgages are particularly valuable in several scenarios:

Bridging Finance

When timing is crucial between property settlements, private mortgages can provide short-term funding to bridge the gap, especially common in hot Australian property markets.

Property Development

Developers and investors looking to acquire, renovate, or develop properties often find private funding ideal for their short-term financing needs, particularly for projects that traditional banks consider too complex.

Time-Critical Purchases

In competitive markets, like the capital cities in Australia, having quick access to financing can make the difference in securing a desirable property or winning at auction.

Important Considerations

While private mortgages offer numerous advantages, borrowers should be aware of certain factors:

Higher Interest Rates

Private lenders typically charge higher interest rates than traditional banks to compensate for increased risk and greater flexibility.

Shorter Terms

Most private mortgages are designed as short to medium-term solutions rather than long-term financing options, typically ranging from 6-24 months.

Professional Guidance

Working with experienced mortgage professionals is essential to ensure the terms and conditions align with your investment strategy and exit plans.

Partner with Natloans for Your Private Funding Needs

At Natloans, we understand the unique challenges of the Australian property market. Our experienced team specialises in connecting borrowers with private mortgage solutions that match their specific requirements.

Whether you’re a developer seeking construction finance, an investor looking for quick settlement, or a homeowner exploring alternative lending options, we’re here to help you navigate the private lending landscape.

Contact our mortgage experts today to explore how private mortgage financing can help you achieve your property goals. Our team will guide you through the process, explain your  options, and help you secure the funding you need with terms that work for you.

Looking to learn more about private lending options? Lodge an inquiry online today or call our team for a confidential consultation about your property finance needs.

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

When choosing a home loan, one of the biggest decisions you’ll face is whether to opt for a fixed or variable interest rate. Your choice can significantly impact your financial stability and flexibility. Fixed-rate home loans provide the certainty of unchanging repayments, but are they always the best option?

Let’s explore the pros and cons of fixed-rate home loans and key factors to consider before making your decision.

Pros of Fixed-Rate Home Loans

1. Predictable Repayments

With a fixed-rate loan, your interest rate remains constant for a set period—typically between 1 and 5 years. This means your repayments won’t change, making it easier to budget and plan.

2. Protection Against Interest Rate Increases

If market interest rates rise, your repayments stay the same, shielding you from unexpected cost increases. This can be especially beneficial during periods of economic uncertainty or when interest rates are expected to climb.

3. Financial Peace of Mind

Fixed-rate loans provide certainty and stability, allowing you to focus on other financial goals without worrying about fluctuating repayments. This can be particularly helpful for first-time homebuyers or those managing tight household budgets.

Cons of Fixed-Rate Home Loans

1. Limited Flexibility

Fixed-rate loans often come with restrictions on extra repayments, meaning you may face penalties if you want to pay off your mortgage faster. Some lenders impose strict limits on additional repayments or charge fees for making them.

2. Missed Savings Opportunities

If variable interest rates drop, borrowers on fixed-rate loans won’t benefit from lower repayments. This means you could end up paying more than necessary if market conditions shift in favour of lower rates.

3. Break Costs and Exit Fees

Breaking a fixed-rate loan before the term expires can result in high fees. If you decide to refinance, sell your home, or pay off your loan early, you may face significant break costs, making it harder to adjust your financial strategy.

Key Considerations Before Choosing a Fixed Rate

1. Choosing the Right Term Length

Fixed-rate terms typically range from 1 to 5 years. A shorter term provides more flexibility but may result in higher rates when it’s time to refinance. A longer-term locks in certainty but could mean missing out on lower rates in the future. Finding the right balance is essential.

2. Exploring Split Loan Options

A split loan allows you to divide your mortgage into two parts—one with a fixed rate and the other with a variable rate. This offers the best of both worlds: stability in one portion of your loan and flexibility in the other.

3. Considering Market Trends

Understanding current economic conditions and lender offerings can help you make a more informed decision. For instance, recent rate reductions from banks and other lenders could influence whether fixing your rate is the right move now or if waiting could be beneficial.

Is a Fixed-Rate Loan Right for You?

Ultimately, whether a fixed-rate loan is the best choice depends on your financial goals, risk tolerance, and long-term plans. If you value certainty and want to safeguard against rising interest rates, a fixed-rate home loan could be a great fit. However, if flexibility and potential savings are your priorities, a variable or split loan might be a better option.

At Natloans, we understand that choosing the right home loan can feel overwhelming. Our team of experts is here to guide you through the decision-making process, ensuring you find a loan strategy that aligns with your needs.

Contact us today to explore your home loan options and secure the best solution for your financial future.

By Mary Nebotakis, B. Eco, Dip. Financial Services, Managing Director, Natloans

Refinancing your mortgage can deliver substantial savings, especially if you secure a lower interest rate. Even a small reduction of 0.5% or 1.0% can significantly decrease your monthly repayments and overall loan costs. Curious about the impact? Let’s break it down with real-world examples and provide you with a simple five-step checklist to get started on your refinancing journey.

How Much Could You Save?

Refinancing your home loan could lead to significant savings, as shown by the following examples.

Under Scenario A, refinancing from a 7.11% interest rate to 6.11% (a 1.0% reduction) could save $330 per month for a $500,000 loan, $495 per month for a $750,000 loan, and $661 per month for a $1,000,000 loan. Over 30 years, these savings amount to $118,800, $178,200, and $237,960 respectively.

Under Scenario B, a smaller reduction from 6.61% to 6.11% (0.5%) still offers notable savings, with monthly reductions of $165, $247, and $331 for loans of $500,000, $750,000, and $1,000,000. Over the life of the loan, this translates to savings of $59,400, $89,010, and $119,160 respectively.

Even minor rate adjustments can yield substantial financial benefits. Contact Natloans today to explore how much you could save!

5 Steps to Organising Your Refinance

Refinancing can feel daunting, but with a clear plan, it’s simpler than you think. Follow these five steps to make your refinance smooth and stress-free:

1. Evaluate Your Current Loan

• Review your loan’s interest rate, fees, and remaining balance.
•  Check for exit fees or penalties for early repayment.

2. Research the Market

• Compare current interest rates from different lenders.
• Use a mortgage calculator to see how different rates affect your repayments.

3. Consult a Mortgage Broker

• Brokers like Natloans provide expert guidance and access to competitive loan products.
•  They can help you find the best lender to suit your financial goals.

4. Organise Your Documents

• Gather proof of income, expenses, and details of your current loan.
• Make sure your credit score is in good standing to improve your chances of approval.

5. Apply and Transition

• Once approved, your new lender will handle paying out your existing loan.
• Carefully review the new loan terms to ensure there are no hidden surprises.

Why Refinance with Natloans?

At Natloans, we’re dedicated to helping you maximise your savings and achieve financial freedom. Whether you’re seeking a lower interest rate or consolidating debt, our team of skilled brokers will guide you through the process to ensure you secure the best deal. Contact us today to explore your refinancing options and start saving!