Loan structures

Loan structures

Exploring Loan Structures: Choosing the right one for you

A well-structured loan, encompassing both mortgage structure and repayment structure, enables borrowers to afford repayments and understand the risks and maturity of the loan. At Advanced Lending, we help to create the best loan structures for our clients to seek the most favourable results from lenders.

Exploring Loan Structures: Choosing the right one for you

Types of Loan Structures

Loan structures in Australia can vary based on the type of loan, the borrower’s needs, and the specific terms set by the lender. Here are some key aspects:

1. Type of loan: Loans can be personal, business, or for specific purposes such as mortgages, student loans, or car loans. The conditions of the loan will vary accordingly. 

2. Interest Rates: These loans can have either a fixed or variable interest rate. A fixed rate means the interest remains the same for the life of the loan, while a variable rate can change based on market conditions.

3. Loan Terms: This refers to the period within which the loan must be repaid. This can range from short-term (such as a few months for a payday loan) to long-term (like 30 years for a mortgage).

4. Repayment Structure:
Loans can have different repayment structures. Principal and interest loans require borrowers to repay a portion of the principal (the amount borrowed) and the interest at each instalment, while interest-only loans require only interest payments for a certain period before principal repayments begin.

5. Security:
Some loans are secured, meaning they require collateral (such as property for a mortgage), while others are unsecured, typically having higher interest rates due to increased risk to the lender.

6. Fees and Charges:
These can include application fees, annual fees, late payment fees, and more, varying by the lender and the type of loan.

Loan structures in focus

Loan structures in focus

It’s important to note that while we may provide online calculators to estimate repayments and costs, including those related to mortgage structure and repayment structure these are usually indicative. Actual terms and costs are often provided after a formal application process, taking into account the borrower’s financial situation, credit history, and other factors.

Contact us today to understand the best loan structure for your specific needs.

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Other types of loans

Home Loans

Home loans can transform your homeownership dream into a reality. Let’s explore the realm of home loans and understand how they can help you step into your dream home.

Personal Loans

As an accessible and versatile financial solution, personal loans can help bridge the gap between your aspirations and your current financial capabilities.

Business Loans

Running a business often requires funds for various operational needs. From start up to expanding an existing business, or bridging cash flow gaps, business loans are the answer.

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