Ethical home finance and conventional home loans can both help clients purchase property, but they are structured differently.
Conventional home loans
A conventional home loan usually involves borrowing money from a lender and paying interest over time.
Ethical home finance
Ethical home finance may involve rent-based, co-ownership or lease-to-own structures. The client may make payments based on rent or agreed margins rather than a traditional interest model.
Key differences
The main differences can include:
- Contract structure
- Ownership arrangement
- Payment calculation
- Provider requirements
- Documentation
- Fees and charges
Which option suits you?
The right option depends on your values, borrowing profile, property type, budget and available providers.
Why advice is important
Because ethical finance can be structured differently, clients should review all documents carefully and seek independent advice where required.
How Nine Fincap can help
Nine Fincap assists clients in comparing conventional and ethical finance pathways so they can make an informed decision.
Want to compare your options? Speak to an Ethical Finance Specialist at Nine Fincap.
Disclaimer
This information is general only. Nine Fincap does not provide religious, legal or tax advice.