1. Finding out about home loans.
Choose the correct questions to complete the conversation.
Now listen to the conversation.
2. Types of home loans.
Here is some information about loans. Match the type of loan with the description.
3. An interruption.
The Mortensens are still waiting to talk to Mr Turner. Decide which option is correct (will, would or shall), and then listen to the dialogue to check.
Now listen to the conversation.
4. Home loans in detail.
Annette and Hans-Ole are reading the leaflet again, this time in more detail. They might be able to pay off a loan very quickly. Which is the best loan for them?
Types of loans
A fixed-rate loan gives you a fixed interest rate for a term of one to five years. The advantage is that you have the security of knowing exactly how much you need to repay over a specified period of time.
- Helps you to budget by fixing the rate of your interest.
- You can fix a rate when you are not sure if rates are going up or down.
- Option of an interest-only period of up to three years.
A variable-rate loan gives you the chance to pay back your mortgage fast. You don't have to pay any additional charges for this.
- Allows you to prepay and save on interest.
- Allows redrawing of prepayments when you need extra funds.
- Fortnightly and monthly repayment schedules.
An introductory variable-rate loan is one that lets you make partial, not full, payments from the beginning, without any penalty, because the first year of owning a home can be financially difficult.
- Your loan converts to a standard variable interest rate after the first year.
- No annual or monthly fees.
- Establishment fee applies.
A special fixed-rate loan lets you make partial, not full, prepayments from the end of the first year, without any penalty, because the first year of owning a home can be financially difficult.
- Your loan converts to a standard variable interest rate after the first year.
- No annual or monthly fees.
- Establishment fee applies.
A home equity loan lets you use the difference between what you owe on your house and what your house is worth to establish a continuous line of credit. You can use this credit for any purpose.
- Loan can be used for any purpose, not just for houses.
- Minimum limit of AUS$20,000.
- Borrow any amount at any time up to your allowable limit.
A market-linked loan links your interest rate to money market rates.
- Borrow in Australian dollars, or in Hong Kong dollars if you have assets or income in that currency.
Our staff can explain these to you and help you decide if they meet your needs.
Now answer the question: The Mortensens think they might be able to pay off the loan in a short time, but they are not sure. Which is the best loan for them?
5. Choose the best loan.
Look at the leaflet again. Now choose the best loan for each of the following people.
Types of loans
A fixed-rate loan gives you a fixed interest rate for a term of one to five years. The advantage is that you have the security of knowing exactly how much you need to repay over a specified period of time.
- Helps you to budget by fixing the rate of your interest.
- You can fix a rate when you are not sure if rates are going up or down.
- Option of an interest-only period of up to three years.
A variable-rate loan gives you the chance to pay back your mortgage fast. You don't have to pay any additional charges for this.
- Allows you to prepay and save on interest.
- Allows redrawing of prepayments when you need extra funds.
- Fortnightly and monthly repayment schedules.
An introductory variable-rate loan is one that lets you make partial, not full, payments from the beginning, without any penalty, because the first year of owning a home can be financially difficult.
- Your loan converts to a standard variable interest rate after the first year.
- No annual or monthly fees.
- Establishment fee applies.
A special fixed-rate loan lets you make partial, not full, prepayments from the end of the first year, without any penalty, because the first year of owning a home can be financially difficult.
- Your loan converts to a standard variable interest rate after the first year.
- No annual or monthly fees.
- Establishment fee applies.
A home equity loan lets you use the difference between what you owe on your house and what your house is worth to establish a continuous line of credit. You can use this credit for any purpose.
- Loan can be used for any purpose, not just for houses.
- Minimum limit of AUS$20,000.
- Borrow any amount at any time up to your allowable limit.
A market-linked loan links your interest rate to money market rates.
- Borrow in Australian dollars, or in Hong Kong dollars if you have assets or income in that currency.
Our staff can explain these to you and help you decide if they meet your needs.
6. Obligation and lack of obligation.
In the previous texts and exercises you saw these verbs that express obligation and lack of obligation (or choice): to let, to make, to allow. Answer these questions:
7. Obligation and lack of obligation.
Choose the correct option so that the second sentence means the same as the first.
8. Borrow and lend.
Compare these examples:
| You borrow money from a bank. | borrow (verb) = take |
| A bank lends you money. | lend (verb) = give |
| A bank gives you a loan. | loan (noun) |
Use the words in the box to complete the sentences.
9. Collocations of loan.
These words are often used with the word loan. Sort the words into three groups.
10. Last-minute questions.
The Mortensens have some more questions. Listen and complete the dialogue by writing in the missing words. There is one word for each box. If the answer is a number, write it as a number and not as a word (for example, write 75, and not seventy-five).
Listen again and read.