Home Loans

Where does Pula Capital source its loan funds?

Pula Capital sources funds through lenders including large financial institutions . They are detailed on our lenders page.

Why would I use Pula Capital?

Pula Capital will ensure you get the right loan for your individual situation.
We source our funds from a variety of secure institutions, offering you the right product at the right time.

What is the difference between a fixed and a variable interest rate?

Fixed interest rates do not change for the period that they are fixed.

Variable interest rates go up and down with market interest rates.

Generally when the Reserve Bank alters the official cash rate, the majority of variable home loan interest rates also change but there are also other factors that affect this.

There are pros and cons to both types of interest rate.

What is a split loan?

A split loan uses both fixed and variable rates in one loan.
This allows you to customise your loan, 60/40 or 50/50 splits are the most common.
This gives you both the certainty of a fixed rate loan but also the flexibility of a variable loan for the percentage split you choose.

Can I borrow money for stamp duty?

No, but this can be accommodated within your cash deposit.
Generally borrowers have to have a deposit of 10%, plus pay the cost of stamp duty and Lenders Mortgage Insurance, normally included in the loan principal.

What is the difference between an offset and a redraw account?

Redraw facilities and offset accounts can often help you pay your mortgage off sooner.
Whilst a redraw facility allows you to access funds you have overpaid into your loan, offset accounts work if you have substantial savings and you are only likely to redraw extra loan payments in an emergency.
The more you have in your offset account, the less your loan balance is and the less interest you will pay. However, the less you have in your offset account the more you will pay (including interest).

When can I refinance my mortgage?

You can refinance your existing home loan at any time, however there are cost implications of doing this. Each loan will have different fees or conditions regarding refinancing.

Property Investment

Why invest money in property?

Investment properties can reap benefits when building a long term wealth portfolio.
It is essential to get the right information and take time in selecting the investment property to give you the return you are aiming for.

Is there a difference between an investment loan and an owner-occupied loan?

The two loans are essentially very similar, however you may be charged a higher rate for an investment property as the risk may be higher than an owner-occupied loan.
Every lender has different rules. It is essential to have a loan approval before you buy an investment property, or any property.

Can I use the equity in my home as a deposit?

If you have built up some positive equity in your own home, this may be used as a deposit for an investment property.
The percentage you need varies from lender to lender.

What is negative gearing?

Negative gearing occurs when you make a loss on your property through the costs you have to pay. These costs include interest on your home loan, bank fees and charges, maintenance, repairs and depreciation with age. These costs have to exceed the income from the rent so that you can claim a tax benefit.

What is positive gearing?

Positive gearing occurs when your income from your property is more than the expenses.
Positively geared properties may be subject to additional tax.

Strata Financing

Who is eligible to borrow a strata improvement loan?

- Body corporate
- Owners corporate
- Company title
- Community associations

What can I borrow money for under a strata improvement loan?

- Improvements to a building in terms of structure, aesthetics, and mechanical improvements
- Upgrades to energy

Do all owners have to agree to take out the loan?

A loan can only be provided to a strata as an entity, not multiple loans to different owners. Owners need to chat to a Strata Manager to discuss the possibilities of different levies.

Is the strata plan required to contribute their own costs of the project?

There may not be a need for owners to contribute any funds into the project if the loan satisfies a bank’s lending guidelines. If a bank is only part funding a project, the owners will need to contribute their own funds.