The mortgage market in Australia can be very complicated. With that in mind, here are the top 7 reasons to use a mortgage broker next time you want to find a new home loan.
Most mortgage brokers have access to a huge range of lenders. They should be able to provide you with a huge choice of rates and mortgage options. With partnerships in a vast array of lending institutions, including banks, credit unions, trusts, national and regional lenders, and non-traditional lenders, a good broker will be able to help design the perfect mortgage for you.Read More
More and more Australians are building wealth through the property. According to the Australian Taxation Office (ATO), there are over 1.7 million property investors in Australia. Just over 25% of these investors own more than one investment property.
The largest group of property investors are not high income earners as many may assume. The vast majority fall into the $30,000 to $75,000 p.a. income bracket.Read More
One of the common problems that home buyers face is not having enough cash to guarantee for their purchase.
Sometimes you can’t unlock the equity in an existing asset such as your home or investment property. Sometimes times you don’t want to use extra / bridging finance such as when you’re trying to sell and buy at the same time.
Sometimes you aren’t able to get the funds together quickly enough to secure the new property. This often happens when you want to go to auction or when you have to act quickly on a private treaty sale.Read More
When you deal with property transactions, you will be dealing with Real Estate Agents. This article will show you how to make real estate transaction go as smooth as possible.
The first thing to note is that the Real Estate Agent does not represent you, the Buyer – they represent the Vendor. It is in their best interest to ensure the Vendor gets the highest price possible because:
– Agents are usually paid a commission on the sale of the property
– Extracting the highest price from the Buyer, allows the Agent to attract more customers in future
Most borrowers often ask, how much can I borrow? This question can be answered by looking how the Banks calculate your borrowing capacity.
Every bank has their own calculator to work out your borrowing capacity. Having said that, the information that gets entered into the different calculators is largely the same. The video in this article will discuss the criteria the banks use to calculate your borrowing capacity.
The factors involved in calculating your borrowing capacity boil down to your income, your living expenses and your current liabilities.Read More
Do you have one or more rental properties?
Are you thinking of purchasing an investment property now that the heat is starting to come out of the market?
Are you, like a lot of people in Sydney trying get on the property ladder by buying your first property as an investment then converting it to your main residence later on?
The ATO has changed some of the rules around what you can and can not claim as tax a deduction when it comes to the expenses incurred when you purchase and own a rental property.Read More
Purchasing a property with a loved one can be a great way to enter to the property market, but taking on such a large financial responsibility with someone else does come with risks.
This article will discuss some of the pros and cons you need to consider before you both sign your names on the purchase contract.
On the one hand, buying with another person gives you more options when you’re finding a property. As the old saying goes, 2 hands are better than one. On the other hand, life happens. You are effectively signing up for the loved one’s portion of the debt if they can’t pay it.Read More
Here are 5 simple tips to help get you set up once your loan settles.
1. Contact your Mortgage Broker prior to the expiry of any fixed interest or interest only period – to research your options.
2. If you used to rent out the property as investment and are moving in, contact your Mortgage Broker. You can get a much cheaper rate for changing to an owner occupied loan product.
3. Ask your Broker for an annual home loan review. See if there’s a better loan product.
4. Check internet banking regularly to ensure loan transactions, notifications and repayments are all OK.
5. Don’t forget to change your mailing address after settlement.Read More
Here are 5 simple tips to help you get a reduction on your home loan interest rate.
1. Switch to Principle and Interest and pay your loan off faster.
2. Owner Occupiers qualify for lower rates. Have you moved into a property you bought as an investment?
3. Negotiate With Your Current Lender. Lenders would rather give you a discount than see you leave.
4. Switch Loan Products. Newer, better products come out all the time. It’s always well worth looking to see if there’s something more suitable out there.
5. Property Revaluation. An increase in the value of your property may come with a big interest discount.Read More
APPRA’s rules which were toughened in March 2017 are aimed at improving banks’ balance sheets in order to allow them to withstand future financial shocks similar to the Global Financial Crisis 10 years ago.
The tighter rules include limiting new interest only loans to only 30 per cent of the market, at Loan to Value Ratios (LVRs) above 80%. At the same time, borrowers are being assessed on higher interest rates and higher deemed expenses. This will ensure borrowers have a much bigger buffer to service their loans should rates go up. Dramatically!Read More