Five home loan hacks to save you thousands of dollars
November 17th, 2021While the joy of living in your own home is incomparable, it’s not unusual to feel bogged down by the mortgage costs, including the interest you will pay on your home loan. However, there are a few things you can do, like comparing home loan deals online to find a lower rate and getting the right features in your home loan, to save money in interest charges and create some financial breathing space for yourself. This post brings you some straightforward hacks to reduce the interest on your mortgage. 1. Getting an offset account linked to your mortgage An offset – Read More…
Top reasons why lenders decline home loan applications
November 12th, 2021Applying for a home loan requires a lot of preparation. It is often a time-consuming process, requiring a great deal of paperwork. However, even after putting in so much of your time to carefully compile your home loan application, it can get declined, leaving you disappointed and confused. Thankfully, it’s possible to increase your chances of mortgage approval by understanding the common reasons for rejection and avoiding them while preparing your mortgage application. 6 reasons why loans are rejected by lenders 1. Lack of genuine savings Some lenders require proof of genuine savings before approving your home loan application. Genuine – Read More…
How can your parents help you buy your first home?
November 5th, 2021Increasing property prices have made it extremely challenging for first home buyers to take the first step on the property ladder. However, parents across the country are keen to help their kids fulfil their property buying dreams by advancing large amounts of money to meet the ideal deposit requirement for a home loan. According to recent research, the “Bank of Mum and Dad” has emerged as Australia’s ninth-largest mortgage lender, with parental contributions rising by almost 20% in the past year. Seeking help from your parents to purchase a house There are several ways in which your parents can assist – Read More…
What are genuine savings?
October 29th, 2021Some lenders want to see proof of genuine savings as part of your home loan application, especially if you’re applying with a low deposit. Genuine savings refer to the money you have saved from your income over a period of time. The minimum period could range from 3 to 6 months for different lenders. Why do lenders care about genuine savings? Most lenders expect you to pay 20% of the property’s value when borrowing money to buy a house. However, having a low deposit doesn’t mean you are locked out of the property market. Some lenders will approve you for – Read More…
Is it possible to purchase a home with no deposit?
October 22nd, 2021If you’re a first home buyer struggling to save a deposit, you may be able to borrow the entire purchase price of a property from some lenders if you meet certain conditions, such as having a family member guarantee your home loan. That being said, no deposit home loans are pretty uncommon, and you’ll generally require a minimum 5% deposit to qualify for a home loan. If this is the option you choose, you’ll most likely pay Lenders Mortgage Insurance (LMI) to cover the lender’s risk in case you’re unable to make your home loan repayments in future. LMI is – Read More…
How to prepare for your first auction sale
October 14th, 2021Auctions can simultaneously be an exciting and daunting experience. While you may feel nervous amidst a chattering crowd, there’s no denying the surge of adrenaline each time you bid. However, there’s also the risk of overbidding in the thrill of outbidding the competition. But that usually happens when you walk into an auction unprepared. The key to succeeding at an auction lies in preparing yourself mentally, emotionally and financially for the event. If you’re wondering where to start, we have for you these 6 tips that will help you bid confidently at an auction. 1. Get a home loan pre-approval – Read More…
Five real estate terms you must know before investing
October 7th, 2021If you’re a first-time property investor, you may find it overwhelming to wade through all the investment jargon. Here are five common terms you’ll regularly hear from other investors and need to understand before investing in real estate. 1. Rental yield If you’re planning to invest in property, you must know how to calculate rental yield to get a good return on your investment. Rental yield refers to the annual income generated from rent, expressed as a percentage of the property’s value. It is determined by several factors, including the location and type of the property, as well as the – Read More…
What is property settlement, and how does it work?
October 1st, 2021The process of buying a house is both exciting and arduous. It can take several months before you finally find the dream house you’ve been waiting to purchase. But you can’t hang up your boots and relax just yet. There’s a lot to organise before you finally receive the keys to your home, including settlement, which is one of the most critical stages in the home buying process. What is meant by settlement in a property sale? Property settlement refers to the legal process of transferring the ownership of a property from the seller to the buyer. It is the – Read More…
How to use your home equity to fund renovations
September 23rd, 2021Home is where the heart is, but what if your heart demands more from your home? There’s been a great deal of change in how people think and feel about their homes in the past year. According to a survey by Australian bathroom retailer Blue Space, more people plan to spend their savings on renovations than on holidays. The top reasons for renovation include wanting to refresh an old room, making changes that add value to the home or create more space for a growing family. Funding your home renovation project Lifestyle changes in the past year have forced several – Read More…
What is a cooling-off period?
September 17th, 2021Purchasing a house requires a lot of careful planning. Yet, sometimes you may want to back out of a well-thought-out purchase for reasons out of your control. For instance, if your financial position takes a turn for the worse (for example, you lose your job unexpectedly), or the lender doesn’t approve your loan after you exchange contracts with the seller – what can you do? It’s also possible that some defects crop up in the property inspection report, and the house is no longer a good deal. A cooling-off period can be a godsend in such situations, allowing you to – Read More…
5 ways to improve your credit score
September 10th, 2021Your credit score is a number that represents your financial history, and is used by lenders to determine how much risk you pose as a borrower . Your score is calculated from the information contained in your credit report, such as the number of debts you are responsible for, whether you’ve been making timely repayments or not, your credit card limits, etc. Depending on the credit reporting agency, your credit score may sit between zero to 1,200, as each of the three major agencies use a different range when categorising consumers’ scores. However, your individual score will usually be similar – Read More…
Top home loan features you might need in your home loan
September 3rd, 2021While comparing home loans, there’s much to look at beyond the headline rate advertised by the lender. Needless to say, the interest rate matters, and a slight difference can save you thousands over the years. Even so, the home loan with the lowest advertised rate might not be the best deal for everyone. That’s why it’s recommended to compare home loans with different options and features to find one that’s most likely to match your requirements. You can also opt for home loan features that help you build some flexibility into your loan or pay it off sooner. However, some – Read More…
What are the different home loan types?
August 30th, 2021If you’re planning to buy a house, you’ll likely need a home loan to finance it. But did you know there are multiple home loan products on the market, and what works for your friend might not be the right choice for you? Even though mortgage products might look similar, they can be structured differently, which can significantly impact your cash flow and the ability to manage your repayments. Here’s a rundown of some popular home loan options to help you make an informed choice. 1. Owner-occupied and investor home loans The type of home loan you’ll need depends upon – Read More…
Everything you need to know about Lenders Mortgage Insurance (LMI)
August 23rd, 2021Lenders Mortgage Insurance (LMI) is a type of insurance that covers a lender’s financial risk in case a borrower defaults on their mortgage repayments. It’s usually required when a borrower applies for a home loan with less than a full deposit. Generally, the smaller the size of the deposit, the higher the cost of the LMI. The amount of LMI payable also depends on the size of the loan, and can often run into tens of thousands of dollars. You can use an online LMI calculator to get a fair estimate of how much extra you’ll need to shell out – Read More…
How much of a deposit do you need to purchase your first home?
August 15th, 2021When buying a house, one of the first things you will need to do is ensure you’ve got enough of an upfront deposit to be eligible for a home loan. While there’s no fixed number, having a deposit that equals at least 20 per cent of the property’s price can improve your chances of approval. Some lenders may even approve you with a lower deposit, but you’ll need to have a minimum of 5 percent of the property’s value unless you have a guarantor for your home loan. Most lenders also require you to pay for Lenders Mortgage Insurance (LMI) – Read More…
Five Ways To Pay Off Your Home Loan Sooner
August 9th, 2021Most home loans are set up for a period of 25 to 30 years, but that doesn’t necessarily mean you have to be stuck in debt for your entire mortgage term. With smart financial planning, it’s possible to pay off your mortgage early and own your home sooner. Here are five tips for paying off your house sooner without spending a lot of extra money: 1. Switch to fortnightly repayments If you’re comfortable shelling out cash every two weeks or so, switching to fortnightly or weekly repayments can help you settle your mortgage faster. While there are 12 months in – Read More…
Home Loan Tips For Borrowers Who Have a Bad Credit Score
July 30th, 2021A bad credit score can stand in your way when you want to get a mortgage, take out a personal loan or even buy a new car. Lenders use your credit rating to assess the risk involved in lending you money. They also reserve their best interest rates and deals for borrowers with a high credit score. On the other hand, bad credit on your file can make it difficult for you to get approved for finance, or you might be offered a loan at a higher interest rate than the market average. What Leads to Bad Credit? Perhaps it’ll – Read More…
Are You Aware of These Investment Property Tax Deductions?
July 23rd, 2021Many people choose to buy an investment property to boost their cash flow through regular rental income. Property investors are allowed several expense deductions by the Australian Tax Office (ATO) for periods their properties are rented out or genuinely available for rent. Investors can write off their investment costs against taxes if their expenses and interest payments exceed their property returns during a financial year. This is also known as negative gearing. Negative gearing helps in mitigating short-term losses through tax deductions to maintain a regular cash flow. However, negative gearing is not the only tax benefit available to property – Read More…
How Much Can I Borrow to Purchase a Home?
July 16th, 2021If you’re planning to buy your first home, you’re likely to apply for a home loan to fund your purchase. Therefore, it makes sense to find out about your borrowing capacity before you go house hunting to avoid getting disappointed at a later stage. For instance, you might like a property but when you apply for a home loan you realise you can’t afford it, as your borrowing capacity is lower than what you planned to borrow. Getting a fair estimate of the amount you can borrow, helps you narrow down your search. It also enables you to figure out – Read More…
Investing and ownership structures – What do you need to know?
March 29th, 2021Many Australians go for property ownership as their investment method of choice. While investing in the real estate market is common, many first-time investors will be surprised to learn that the ownership structure they choose for their new property can have a notable impact on the returns they see on the investment. Like most decisions you’ll make regarding the property market, there is no one-size-fits-all guide to choosing an ownership structure. You’ll need to take careful consideration of your circumstances and seek out expert advice to find the option that suits you best. Some ownership structures are more common than – Read More…