FNS40815 Certificate IV Finance: Evaluating Different Home Loan Types

This assignment provides an overview of various home loan options available, catering to different needs and objectives. It covers variable rate loans, highlighting their flexible interest rates but also mentioning potential management fees. Honeymoon rates, offering initial discounts, are discussed alongside no-frills loans, which have lower interest rates but fewer features. Professional packages, line of credit, credit impaired loans, bridging loans, split loans, and low doc loans are also explored, outlining their specific benefits and suitability for different borrowers. The script emphasizes the importance of understanding the pros and cons of each option before making a decision, ensuring the chosen loan aligns with individual choices, demands, and objectives. Desklib provides access to this and many other solved assignments to help students in their studies.

Script:
There are various options available for the loans. It depends on your choices, demands
and the objectives that which loan would be suitable for you. You can take the various home
loans, overdraft etc from the bank to buy your home. There are various options which are
offering different interest rate as well as all are with different specification. So, you should
learn all the pros and cons first and then you should raise the loans.
Variable rate loan is an option. It is easy to raise the loan through this technique and
the main pros of this loan system are its variable interest rates though sometimes extra
amount is paid for managing the EMIs and loans. Further, you can also apply for honeymoon
rates. Honeymoon rates offers special discount for first part of the loan contract. The interest
rate could be fixed or variable. It is only beneficial at the starting phase.
No frill loans are also an option as the interest rate of such loans is quite lesser as well
as the associated running cost is also lesser. Though, few facilities of homes are not available
in no-frills loan. It affects the EMI amount at loan term. Professional packages are also an
option to raise the home loans. These loans could be sanctioned to only qualify person. It
offers a discount rate to the client and makes it easy for the person to pay the loan.
Line of credit is an overdraft position where an extra amount could be borrowed by
the company at any time. This could be used at the time when user does not want to take
further loans. Credit impaired loan could also be an option for you to raise the loan for your
home. This is designed to aid the borrowers in various circumstances. These loans are only
beneficial for the borrowers while managing the policy and manage the loans of the
borrower.
Bridging, split loans and low doc loan are also options for house loan. Bridging loan
is helpful at the time when current property is sold by the borrower for purchasing a new
property. This is only useful when settlement date of new property is quite before the sales of
old property. Split loans are useful to reduce the level of effect of interest rate. Lastly, Low
doc loan is for the companies and it is not beneficial for the individual.
Thus, you could choose the loans according to your choices, demands and the
objectives that which loan would be suitable for you. You can choose from above described
home loan, overdraft etc from the bank to buy your home. These various options are offering
different interest rate as well as all are with different specification. So, you must select the
option according to your choice.