Building a Home.

like LEGO.

Looking to build a home?

There are many advantages when it comes to constructing your own home, the biggest being the creative control over the project so you are getting a property that meets every single one of your requirements.

It is also the most cost-effective way to get the perfect space, as trying to find a pre-existing one that meets all of your requirements might be out of your area and out of your price range.

Another great Australian strategy is the good old DIY project, where you find a space that has all of the potential you need and then putting the work in to shape it to your needs.

OCTO Finance can assist you with all of your financial needs for construction and renovation projects, including residential projects and commercial options help move your business forward.

Expert advice to take you from dream to done.

Individuals and families trust our team of building and renovation loan specialists at Axton Finance to deliver clear, honest advice. We look after the entire application process so you can focus your time and energy elsewhere. From property valuations to pre-approval paperwork and progress payments, we’ll guide you through the homebuilding and renovation process to bring your property blueprint to life.

Save money while you build.

Home building loans are progress-based, which means your lender takes funds at milestones throughout the construction process. These steps are called progress payments, and you only pay interest on the amount currently drawn. Wondering if a construction or renovation loan is the financial solution for you? Get in touch—we’d love to talk.

The right loan for your home.

We’ve spent years helping Australians like you secure construction loans to build the houses that become homes. After talking through your financial goals and situation, we’ll recommend a roadmap to help you reach them. We leverage our longstanding relationships with our extensive panel of lenders to secure competitive interest rates and seal the deal.

Land and construction loans for Australia

In many cases, you can secure the land you want in the location that best suits you and enlist a builder to construct your home under the one loan. OCTO Finance can find the right option for you from our list of 25 different banks and lenders that will give you the best solutions for your land and construction package.

Getting a mortgage to renovate a house

Are you looking for the perfect fixer-upper? We can help streamline this process by delivering finance solutions for the purchase of the residence and covering the costs so you can get straight to work.

There are many variables here including options to use the equity in your property and seeking multiple finance options so come and have a chat with our professionals to find the best solution for you.

If you have an existing property then you have options when it comes to funding your next big project. You can take out a new mortgage, use the equity in your home or re-finance your existing mortgage – it all depends on your circumstances and how big your project is. Our team will connect with you to secure the best solution.

Renovation loans for commercial premises

Get the most out of your commercial enterprise with a loan for new fitouts, features or a total overhaul. Let our team find the best finance solutions for your project and also find the right structures and tax benefits to save you money.

What type of home loans do you offer?

At OCTO Finance, we understand that every individual’s financial situation and homeownership goals are unique. That’s why we offer a diverse range of home loan options tailored to meet your specific needs. Our home loan products include:

Variable Rate Home Loans: With interest rates that fluctuate based on market conditions, these loans offer flexibility and potential cost savings over the long term.

Fixed Rate Home Loans: If you prefer stability and want to lock in a consistent interest rate for a set period, our fixed-rate loans might be the ideal choice for you.

First Home Buyer Loans: Designed to assist first-time homebuyers, these loans often come with favourable terms and government incentives to help you get started on the property ladder.

Investment Home Loans: If you’re looking to invest in property, our investment home loans provide options to help grow your property portfolio with a tailored structure that meets your cash flow needs.

Refinancing Solutions: We also offer refinancing options to help you secure a better interest rate, access equity, or consolidate debt.

Our experienced mortgage brokers will guide you through the available options and assist you in finding the best home loan solution for your circumstances.

What is home loan refinancing, and how can it benefit me?

Refinancing your home loan involves comparing  your existing home or investment loan with what is available in the wider market and if it makes financial sense it is swapped out with a new mortgage agreement typically with a new lender.. This process allows you to take advantage of better interest rates, more favourable loan terms, or access equity in your property to spend on almost anything you like. At OCTO Finance, we understand that your financial situation and needs can change over time, and refinancing offers an opportunity to optimise your home loan. Here are some ways refinancing may benefit you:

Lower Interest Rates: If market conditions have shifted or your lending capacity and credit score is good, refinancing can lead to lower interest rates and cheaper monthly repayments. You can use the monthly savings and plough them back into the loan to help speed up your debt reduction plans or use the savings for any other of life’s demands.

Accessing Equity: If your property has increased in value or you’ve made significant repayments, you may have built up equity. Equity is simply the difference between the value of your property and the amount owing on it. Refinancing allows you to access this equity, which you can use for home improvements, investments, consolidating debts, or other personal or financial needs.

Consolidating Debts: If you have other debts with higher-interest rates, such as credit cards, car loans or personal loans, refinancing can be an effective way to consolidate these debts into your home loan. By doing so, you’ll have a single, more manageable repayment at a potentially lower interest rate but this needs to be applied with caution as you don’t want these typically shorter loan terms being paid over a much longer loan term associated with a normal home or investment loan

Changing Loan Features: Refinancing enables you to switch to a loan product with features that better suit your current circumstances. For example, you may want to move from a variable rate to a fixed rate, or vice versa, or set up an offset home loan which is a linked savings account that does not pay interest but the balance instead ‘offsets’ the balance of the mortgage loan which in turn can be an effective structure to pay off your home loan sooner.

Debt Repayment Strategies: Our mortgage brokers can work with you to develop a personalised debt repayment strategy, which may involve refinancing at strategic intervals to optimise your financial outcomes.

Before proceeding with refinancing, it’s essential to consider potential costs, such as exit fees from your current lender, application fees, legal fees and whether any other short term offers exist such as honeymoon interest rate periods or cashback offers from a shortlisted lender. Our experienced team at Axton Finance will conduct a comprehensive assessment of your financial situation using industry leading tools, guide you through the process, and help you determine if refinancing is the right choice for you.

Can you arrange bridging finance?

Can you arrange bridging finance?

Many people table the idea of using bridging finance  but few really understand how its operates or what it effectively achieves. At its simplest it enables a home buyer to purchase a new property before the sale of their existing home. More often than not it is owner occupiers rather than investors who will use this product.

The finance structure basically enables you to borrow up to the full purchase price of the new property plus all stamp duties and closing costs like stamp duty, legals. Generally the lender will give you between six and twelve months to sell your current property and release its equity to enable the current loan to be closed out and use any surplus money left over to reduce the bridging loan on the new property plus any interest fees and charges. Generally the interest on the bridging loan is capitalising (interest is added to the loan). Your responsibility is to only meet the repayments on the existing loan during the bridging time frame. A few important things to consider;

You generally need a fairly good amount of equity in your current property to consider the use of bridging finance especially if you new purchase property is likely to be more expensive than your selling property

Some lenders require servicing evidence (affordability testing) on the end debt position after your current home is sold but other lenders require your servicing evidence to be on the peak debt amount which makes it difficult to secure support with such lenders

Interest rates on bridging finance are generally not discounted and are higher for the term you might have bridging for

The bridging finance interest calculation only starts when the target purchase property settles so if you can negotiate a long enough settlement you might be able to secure a quick sale on your current property which maye minimise or completely eliminate the time frame you need to be exposed to a bridging loan structure

As you can see there are quite a few variables to bridging finance and not all lenders and policies are created the same so get in contact with us here.

How do I know if I need to refinance my home loan?

Quite simply you need to be sure that that a refinance is going to save you a meaningful amount of money after any potential refinancing costs.

Fortunately we can calculate accurate savings you may be eligible for by comparing hundreds of lending products from over 30 lenders to tailor a lending solution that matches your needs and not just the lender involved.

In a rising rate market more than ever is it important to keep a regular eye on your current interest rate to ensure that it is remaining competitive. You can bet your bottom dollar that your current lender is unlikely going to tell  you that there might be a  cheaper rate out there that may be more suitable and thats where our difference comes into play.

As a client of OCTO Finance our systems ensure annual reviews of your structure that ensure your loan remains competitive and we work in the back ground to ensure we needle your current lender to ensure that your interest rate remains as competitive as possible.

What does it actually cost to refinance?

Refinancing your home or investment loan is usually not that expensive but you need to be aware of a few things. As a rule of thumb a simple refinance will not cost more that $500-$750 but the upside could be many thousands in saved interest and could slash years off your existing loan.

In recent times many lenders have also been offering cashback rebates on your home loan if you refinance to them which can be several thousand dollars but like with most things there are often catches. The good news is that we can help you evaluate this possible benefits and compare apples with apples.

Basic refinance costs are discharge fees payable to your current lender usually about $300 per mortgage, lender legal fees may or may not be included in this cost but are usually less than $250. Government discharge and mortgage registration fees are payable and differ from state to state but again are less than a few hundred dollars per mortgage security (property). 

One important consideration is if there are break fees payable to paying out a fixed loan early. However generally speaking if your current fixed rate is cheaper than the prevailing rates your lender will let you out without charge. If you need to break a fixed loan and the fixed rates have fallen below current fixed rates the you may be up for a pretty expensive cost in many cases. Each lender uses a different calculation and its usually easy to get a quote just by ringing your current provider.

What is home loan refinancing, and how can it benefit me?

Refinancing your home loan involves comparing  your existing home or investment loan with what is available in the wider market and if it makes financial sense it is swapped out with a new mortgage agreement typically with a new lender.. This process allows you to take advantage of better interest rates, more favourable loan terms, or access equity in your property to spend on almost anything you like. At OCTO Finance, we understand that your financial situation and needs can change over time, and refinancing offers an opportunity to optimise your home loan. Here are some ways refinancing may benefit you:

Lower Interest Rates: If market conditions have shifted or your lending capacity and credit score is good, refinancing can lead to lower interest rates and cheaper monthly repayments. You can use the monthly savings and plough them back into the loan to help speed up your debt reduction plans or use the savings for any other of life’s demands.

Accessing Equity: If your property has increased in value or you’ve made significant repayments, you may have built up equity. Equity is simply the difference between the value of your property and the amount owing on it. Refinancing allows you to access this equity, which you can use for home improvements, investments, consolidating debts, or other personal or financial needs.

Consolidating Debts: If you have other debts with higher-interest rates, such as credit cards, car loans or personal loans, refinancing can be an effective way to consolidate these debts into your home loan. By doing so, you’ll have a single, more manageable repayment at a potentially lower interest rate but this needs to be applied with caution as you don’t want these typically shorter loan terms being paid over a much longer loan term associated with a normal home or investment loan

Changing Loan Features: Refinancing enables you to switch to a loan product with features that better suit your current circumstances. For example, you may want to move from a variable rate to a fixed rate, or vice versa, or set up an offset home loan which is a linked savings account that does not pay interest but the balance instead ‘offsets’ the balance of the mortgage loan which in turn can be an effective structure to pay off your home loan sooner.

Debt Repayment Strategies: Our mortgage brokers can work with you to develop a personalised debt repayment strategy, which may involve refinancing at strategic intervals to optimise your financial outcomes.

Before proceeding with refinancing, it’s essential to consider potential costs, such as exit fees from your current lender, application fees, legal fees and whether any other short term offers exist such as honeymoon interest rate periods or cashback offers from a shortlisted lender. Our experienced team at OCTO Finance will conduct a comprehensive assessment of your financial situation using industry leading tools, guide you through the process, and help you determine if refinancing is the right choice for you.

Is refinancing worth it in the long run?

Refinancing can be incredibly worthwhile in the long run if it results in significant savings or improved financial flexibility. Factors to consider include the current interest rate environment, how long you plan to stay in your home, and the costs associated with refinancing.

If you can secure a lower interest rate, reduce your monthly payments, and/or tap into home equity to free up some cash for any worthwhile purpose , then refinancing could prove beneficial. Our licensed mortgage brokers can help evaluate the total savings over the expected duration of your mortgage to determine if the benefits outweigh any potential  costs. Additionally, consider any prepayment penalties or fees for paying off your current loan early which is usually only relevant if you have a fixed home loan. Consult with our team of expert mortgage brokers  to help you on your way to making an informed decision.

What's the difference between fixed-rate and honeymoon rate refinances?

Fixed-rate refinancing involves replacing your existing mortgage with a new loan at a fixed interest rate, providing stable monthly payments over a set initial term usually one to five years but can be up to ten years with some lenders. . Honeymoon rate refinances, on the other hand, offer an initially lower rate that adjusts periodically based on market conditions.

Choosing between the two depends on your risk tolerance and how long you intend to stay in your home. Fixed-rate refinancing offers predictable payments, while adjustable-rate refinancing might provide lower initial payments that could rise over time. When considering fixed vs. adjustable rates, factor in your financial stability, future plans, and comfort level with potential interest rate fluctuations. Consulting with financial advisors can help you make a well-informed decision tailored to your unique circumstances.

Why would I consider refinancing?

Refinancing offers several potential benefits, including lowering monthly payments, reducing interest rates, consolidating debt, or accessing home equity for significant expenses like renovations or education. If you’re eligible for a lower interest rate than your current mortgage, refinancing can save you both time and money over the life of your loan.

Similarly, tapping into your home’s equity through a cash-out refinance can provide funds for important financial goals. Assess your individual circumstances and goals to determine if refinancing aligns with your needs. Keep in mind that while refinancing can offer advantages, it’s important to carefully evaluate the associated costs and potential impact on your overall financial situation.

Consulting with our team of mortgage professionals can help you weigh the pros and cons and make an informed decision that’s best for you.

What Do I Need to Consider When Refinancing?

Refinancing a mortgage is a significant financial decision that requires careful consideration of various factors to ensure it aligns with your long-term goals and financial situation. Here are some key points to consider when contemplating mortgage refinancing:

Current Interest Rates:

One of the primary reasons people consider refinancing is to take advantage of lower interest rates. Research and compare current rates to determine if they are significantly lower than your existing rate. Even a slight reduction in interest can lead to substantial savings over the life of your loan. A qualified mortgage broker could help you quantify this based on your exact position.

Your Financial Goals:

Clarify your objectives for refinancing. Are you seeking to reduce monthly payments, shorten the loan term, or access equity? Each goal may lead to a different refinancing strategy. For example, if you’re planning to stay in your home long-term, refinancing to a lower fixed-rate mortgage could be beneficial.

Closing Costs:

Refinancing usually involves some sort of closing costs, which can include application fees, appraisal fees, title search, and more. Calculate the total cost of refinancing and compare it with the potential savings to determine if it’s financially viable in the long run.

Break-Even Point:

Calculate the break-even point – the time it takes for your savings from refinancing to exceed the costs incurred. If you plan to move before reaching this point, refinancing may not make financial sense.

Credit Score:

A strong credit score is essential for securing favourable interest rates. Review your credit report, address any discrepancies, and work on improving your score before applying for refinancing.

Loan Term:

Consider whether you want to maintain the current loan term or shorten it. While a shorter term might lead to higher monthly payments, it can result in substantial interest savings over time. If you are a few years into your current loan term refinancing on a new thirty year loan term could be financially advantageous even if the rate is cheaper.

Equity:

The amount of equity you have in your home can impact your refinancing options. If you have built up significant equity, you could qualify for a cash-out refinance, allowing you to access funds for almost any worthwhile purpose.

Market Conditions:

Keep an eye on the overall economic and housing market conditions. These factors can influence interest rates and the availability of loan options. When interest rates rise and fall some lenders have a tendency to make changes outside of the RBA which can cause your current rate to become uncompetitive. A good mortgage broker like OCTO Finance has automated review systems to help keep your current bank or lender competitive on an annual basis.

Long-Term Plans:

Consider your long-term plans for homeownership. If you anticipate moving in a few years, refinancing might not offer substantial benefits. However, if you plan to stay for an extended period, refinancing could yield significant savings.

Consult Professionals:

Before making a decision, consult with one of our experienced mortgage professionals at OCTO Finance. They can provide personalised credit advice based on your specific situation and help you make an informed choice.

Ultimately, the decision to refinance should align with your financial goals and circumstances. Thoroughly evaluate the pros and cons, crunch the numbers, and seek expert advice through Axton Finance to ensure that refinancing supports your overall financial well-being.

© 2024 by Octo Finance Group

OCTO Finance Group Pty Ltd are authorised representatives of Finsure Finance and Insurance Pty Ltd.

ABN 72 068 153 926 under Australian Credit Licence Number 384704. | Australian Credit Representative Numbers for Joseph Ong (CR No 526632)