Types of Loans

Click on the different loans facilities below for further clarification

Capitalised Interest

Interest Only

Line of Credit

Table Mortgage

Table Reducing Mortgage

In many instances the most suitable facility will involve a mix of two or more of these loan types to create the most optimum facility for your needs.
 

Capitalised Interest

 
Where the interest payable is not paid but added (capitalised) on to the loan balance.  Capitalised interest is primarily used in a development facility as often there is no income derived from a property when it is being developed to pay for interest.

Capitalised interest loan periods are negotiable with the lender.

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Interest Only

This is a very handy type of loan for situations such as;

  • When income for debt servicing is marginal
  • To maximise surplus income for the borrower

Interest only loans are available for periods up to 5 years for commercial and up to 10 years for residential.

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Credit Line

A facility where you can draw and repay funds as required with the interest payable calculated on the balance drawn.

Credit lines are available for periods of up to 3 years or by individual negotiation with the lender.

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Table Mortgage

A table mortgage is where constant repayments are made over the term of the loan to reduce the mortgage to a specific level. With a table mortgage the initial interest payment is high and the principal payment is low but as time goes by the interest component of the payment decreases and the principal component increases. 

Table mortgages are available for periods up to 15 years for commercial (on a 25 year payment plan), and up to 30 years for residential.

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Table Reducing Mortgage

With a table reducing mortgage the same principle payments are made during term of loan.  The initial mortgage repayments will be high as it will contain a large amount of interest together with a large portion of principal, however over time the repayments reduce because the loan amount reduces and in turn reduces the amount of interest payable.

Table reducing mortgages are available for periods up to 15 years for commercial (on a 25 year payment plan), and up to 40 years for residential.

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