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A loan or a mortgage is probably the biggest expense you will ever have, therefore, it surely pays to get professional assistance and advice for the same. A Mortgage Broker is your loan expert. Generally, their role revolves around assistance with lending, however, they do become a critical link in giving you skilled advice to match your needs with a suitable lending solution.
These specialists have access to a broad range of products and are accredited with the several lenders to offer their respective products. Most mortgage brokers do not charge you a fee for their valuable advice. In brief, you will be able to get thorough guidance on the loan process, alongside comparing the suitable loan products, which meet your financial needs.
Is your broker a salesman or an educator?
Mortgage brokers provide highly useful services while searching for Home Loan in Australia. A qualified brokers can explain you with best options, balance your essentials with lenders’ products, and also assist you with paperwork and loan application forms. A great broker will be the one who would be more an educator and adviser than a sales person. Besides their expertise, the brokers have to adhere to higher education and ethical standards aligned to government requirements.
Why Professional Guidance is Important?
Its time to get serious when you give yourself the best chance of keeping your home, or selling it on your own terms. Contacting your lender or getting help is not really an option, but a necessity. An expert advice will not just assist you with your mortgage repayments but also save you from traps to avoid slipping further into any debts.
Your mortgage broker acts as your personal loan concierge and does all the work for you. On your behalf, he does a Home Loan Comparison for you, applies for a loan , hunts the lowest mortgage rates, negotiates terms and conditions and makes the loan approval for you happen.
Save on Time
It can take hours to apply for different loans, and then there’s the back-and-forth communication involved in underwriting the loan and ensuring the transaction stays on track. A mortgage broker can save you the hassle of managing all those daunting details.
There are several different types of fees involved in taking on a new mortgage or working with a new lender, including origination fee, application fees, appraisal fees and others. Most mortgage brokers have long developed relationships with several local, regional and even national lenders, which allow them to tap those connections and perhaps get some loan fees waived for you.
Some banks and lenders work exclusively only with brokers, and that compels you to get qualified for certain loan products, merely if your mortgage broker has a good relationship with those lenders. Some lenders work exclusively with mortgage brokers and rely on them to be the gatekeepers to bring them suitable clients. A mortgage broker will give you accessibility and one-on-one attention, which you likely may not find if you bypass and work directly with a loan officer at a large bank.
You may spend more time, money & effort if you choose to do it all by yourself
Anyone who has recently tried to get a mortgage directly from their bank may have found themselves faced with a wait of weeks for an appointment. Spend some time contacting lenders directly to obtain an understanding of what mortgages may be available to you. Work with a reliable mortgage broker with solid references and ask them to guarantee their loan estimates.
The three key things to look for are the number of loans your broker offers, the amount you will be charged for their service and what kind of reputation they have.
If you want to test real returns on a property, have a long-term goal, and the Australian property market has undoubtedly performed consistently well over the past decade. The returns on real estate speculations have inspired more people to consider buying property purely from an investment perspective.
Check-points to tick off while choosing your investment asset:
* Make a strategic decision and not an emotional one
* Location is critical for you to evaluate the capital growth of the asset over the years
* Can you afford the same or are you going overboard?
* How easy it is to maintain since you are not going to live in it
* How would the rental returns be?
* Can you avail an investment property loan easily?
Always remember, a good investment loan can make the process of acquiring a property for investment purposes open and stress-free to manage during the life of your investment. However, investment loans can vary in nature and you need to decide your end goal before you choose your repayment plans. Use Property Investment Tools to make sure you know how much payments need to be made at what duration of time.
TYPES OF LOANS
Principal & Interest
This is the simplest type of loan usually used by owner occupiers who are paying the loan with the intention of eventually owning the property. Every regular payment is divided with proportions of interest and a section of the principal borrowed.
Interest-only investment loans are a smart tool for property investors. Avail an interest-free investment loan if you are strategizing to gain maximum returns on investment.
Variable Interest Loans
If you do not plan to fix your loan, your interest rate will move with changes to market interest rates. This means the interest rate can rise or fall over the term of your loan resulting in rate changes for your repayments.
* You can make extra repayments * More features such as you have unlimited redraws on any additional repayments
* Easier to switch to cheaper loans with better deals in the market
* Can make budgeting harder as loan repayments can increase when interest rates change.
* If you are not prepared for a rate rise you may have trouble keeping up with repayments.
Line of Credit
This form of credit gives the borrowers a chance to experience a sense of freedom and choice with their mortgage. Some of the key benefits you should consider while opting for finance under this type of scheme are:
* The credit limit amounts are usually quite large which means you can make larger purchases without going over the limit
* You can withdraw up to your credit limit without any additional approval from your lender
* The interest rates are generally lower than that offered through a credit card calculator
* You do have a choice to make repayments on either a monthly basis or you may not have to make a payment as long as you remain below the limit.
What is an offset account?
An offset account is a savings account linked to your home loan account. Offset accounts work by offsetting up to 100% of the balance of the linked savings or transaction account against the balance of the linked loan. An offset account can reduce the amount of interest you pay on your home loan. Offset accounts are much more effective if you put money in and leave it there.
Such types of loans are often a necessity for several small business owners who desire to purchase their own premises. However, commercial property loans do come with their own share of regulations of borrowing and repayments. The home loan lenders will allow buyer to borrow more than 90% of a property’s market price, however, when it comes to commercial property loan, you will need to pay up more cash upfront.
Mortgage brokers are trusted advisers who have the power to help you realize your financial and lifestyle dreams. A Mortgage Broker in Australia helps you begin with the process of borrowing a loan and then getting through it. Whether you are a first-home buyer or an experienced buyer, you may have numerous questions while meeting with a Mortgage Broker.
The process may be all the more difficult and confusing if you are doing it for the first time. To make the process easier for you, we have a list of a few things that you must confirm with the mortgage broker before beginning with the process.
To conclude, before meeting with your broker for the first time, you must research the market first, prepare a list of questions that you have had in your mind, check the lender’s panel on your broker’s list, have a look at the commissions offered, explain all your needs and understand your options to the broker. You may also ask the Mortgage Broker in Australia to get you an estimate on the interest rate that you would be paying using tools like Home loan calculator, etc.
Preparing yourself with all these points before getting in a meeting with your broker will give you all the information that you might need and ease the process of borrowing between you and your broker. You may also get in touch with the lending specialists from Your Finance Adviser for proper assistance.
White sandy beaches and bright sunny days all year round! You could have been enchanted with Australia and you want to call it your abode. Buying a home is one of the biggest decisions you will ever make so you need to ensure everything goes as per plan.
You could either be a first-time home buyer, or starting to look around for a new one; it always helps to know what to look for when you venture out for home hunting. There are several parameters that one needs to bear in mind, however, we let you explore four-Must Dos before you sign on the dotted line.
The purpose or the reason of your purchase will determine many of your decisions. Are you going to be the occupier? Or will you purchase the property and then lease it out? Is it a forever home or a transitional one? Whatever seems to be the driver, the type and condition of the dwelling you buy and how much work you are prepared to do to improve it, will only be successful if you have clarity on the tangible goal for investing into real estate.
One of the most important decisions we will ever make in our lives is where to live. Location always dominates when it comes to buying properties. Ideally it should be the most important consideration, because the structure and layout of any home can be eventually altered. The location of your home determines many things that directly affects and influences a home’s value. These items include the overall quality of life, school choices, commute times, social engagements and much more. It is often better to adjust your price range in order to find a home in a better neighborhood, than to compromise on this aspect.
It is the location that will ultimately impact your everyday life and your home’s future value. A great neighborhood will help resell your home because of increased demand, faster selling capacity and for more money than similar houses in less attractive areas.
Right price point is another important factor because you could miss out on finding the right home. While an ideal price remains only a myth as many a times the seller won’t bend on the number that you desire. Further the purchase price is just one aspect of owning the home. You need to consider various other expenses, such as insurance, taxes, property association fees, etc. that will be associated with you future habitat.
Remember the price of a home is only determined when a transaction actually takes place, else everything is notional.
PAY BACK OPTIONS
Is it worth to take the plunge into home ownership by investing your hard-earned funds or would taking a home loan in Australia with flexible repayment options be more beneficial? You may look at the below tips to ensure you get value from a mortgage broker:
Australia, home to a rich culture and a bustling economy, is a land of opportunity. Any worthwhile business idea, when funded well and executed the right way, should have a good chance at success. A business loan is what you need to begin with.
There are different types of loans you can select from, taking into account the various kinds of businesses, business models and operational needs. Organisations that have poor credit or no collateral may also stand a chance to get a loan from a financial institution via alternative lending. The options are seemingly endless; but tread carefully!
BANK LOAN REQUIREMENTS
Banks are secure sources of finance given that individuals, families and enterprises deposit money in them. Since they are the primary options for business funding, they offer a wide variety of loan packages for companies, covering the amount needed as well as the ability to pay premiums. Stringent rules and regulations come with bank loans. These institutions make sure that a loan applicant is able to repay the premiums on time and with minimal threat to defaults.
Secured Vs Unsecured Loan — Which one does your business support?
The choice between the two rests with you and each has its own benefits as well as considerations.
In this type of loan, you offer an asset for the loan, such as property. The interest rate will usually be lower than unsecured. In case you are unable to repay your loan, the lender may sell your asset and recover his loss.
There is no asset or security offered for this type of loan and thus the business loan interest rate charged for this is much higher. While it allows you a flexibility of getting a loan without any collateral, it can be sometimes more difficult to get an unsecured loan approved.
Term Loan Vs Lines of Credit
A term loan is receiving a single, lump-sum payment, which is the most straightforward and most common loan available. You will have an agreed period of time in which to pay the loan back and will be required to pay interest on the entire loan amount even if you don’t use it all.
In contrast to a term loan, the Lines of Credit are revolving. With this facility, you are granted a certain amount of credit, which you are able to draw on as needed, only paying interest on what you use.
When evaluating which of these products is best for your business, your business loan broker will explain what is most important for you keeping in mind your repaying capacity. You can access funds from your line of credit at any time, as long as you don’t exceed the maximum amount specified in the loan agreement and provided that you meet all the requirements set by the financial institution, like making timely minimum payments.
If you need cash quickly, your best bet is going through a Mortgage Brokerwho will assist you with a line of credit or a short-term loan. Both of these products have very quick applications and, in many cases, allow you to receive funds in a matter of days.
Invoice finance is also known as “factoring” is when you sell your invoices to a lender. The lender will forward you up to 80% immediately of the invoiced amount and become responsible for collecting payment. With this kind of credit you are benefitted with immediate injection of cash without the need to wait for payment of invoices. You may use the invoice finance for covering short-term finance issues. However, there could be a drawback since you will receive less than the face value of the invoice and this type of credit is usually more expensive than loan finance.
Small business loans come in many forms today. Over 50% of Australian small businesses have a loan facility of some description.
There are several home loan packages available to choose from at any given time. Therefore, it can be challenging to determine which home loan type is right for your individual needs. This can be confusing, however, to make your task easier, we give you an insight into the fixed, variable or split rates which can help you decide your right pick!
All home loans apart from interest-only loans have two essential factors; principal and interest. The principal is the amount borrowed, and interest is the amount paid to borrow the money. Consequently, you have a choice amidst three key types of interest repayments:
FIXED RATE LOANS
Fixed rate home loans have an interest rate that is fixed for a set period of time - often 1, 3 or 5 years. At the end of the fixed rate term, the loan will usually switch to the standard variable rate offered by the lender.
This type of loan surely makes budgeting easier .You know exactly what your repayments will be, so you can plan ahead and set financial goals with confidence. You could emerge profitable if the rates rise in the interim as this will remain constant and, you will be happy knowing you are paying less than the variable rate.
But on the other hand, if the rates drop, this means you may not benefit either.
VARIABLE RATE LOANS
Variable home loans are very common loans offered by lenders and bankers. Most first time home buyers opt for this loan. This type of loan starts with a lower interest rate however, after a fixed time, the rate fluctuates according to the market index, as set by the Reserve Bank. It means the interest rates move up or down as per the market. Generally, repayment term is upto thirty years. You are allowed flexibility of repayment options, however, you could end up with fewer features than general loans.
SPLIT RATES HOME LOANS
A split home loan gives you the best of both worlds. A split loan calculatorlets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. Fixed rates offer certainty about repayments, which is ideal for tight budgets, while also protecting against possible rate rises. Of course, as most things in life, split loan too are a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you did not fix!
Variable home loans give flexibility to take advantage of low rates by making additional repayments to pay your mortgage plus the benefit of any further rate drops if your lender passes them on.
Below can be termed as the best advantages if you opt for a Split Rate:
Apart from fixed, variable, and split loans, you may encounter basic, standard, and packaged loans. A basic loan is a variable rate home loan offering you the lowest rate possible with no features. However, the definition of a basic loan varies from lender-to-lender. So, it is worthwhile reviewing terms and conditions, rather than plunging into the mortgage deep-end.
When determining which loan type is right for you, there is no right or wrong solution and it totally depends on your individual needs. For whichever loan type you wish to opt for, always take guidance from your finance adviser who can help to find a competitive mortgage best suited for your requirement.
2019 is likely to be an interesting year for the Australian economy. This year’s pending Federal election could present opportunities for judicious home buyers and investors with less competition at auctions. While people tend to sit on their hands in the lead-up to elections and despite market sentiment being unfavourable, the dedicated buyer is out there every weekend seeking to find that ideal property.
The property market remains a hot topic especially when it comes to Sydney and Melbourne. Over the past year, a combination of factors has come together to turn the housing cycle down and create a perfect storm for house prices in both the cities.
Australia has been the most popular investment destination in the Asia Pacific and it’s the perfect time to lay the groundwork to invest here. There are pockets of affordability in both Sydney and Melbourne. Entry-level two-bedroom flats are affordable on a typical income in a number of suburbs, and some suburbs even have entry-level three-bedroom houses that are relatively affordable for a couple. Simply enter some basic information and the home loan borrowing power calculator will give you an idea of how much you can borrow and what your monthly mortgage repayments might look like. However, this will be only a likely indicator while you will need to visit Your Finance Adviser for better understanding of the same.
Foreign citizens who want to buy or invest in residential property in Australia will now need to pay a stamp duty levy and, in some states, a land tax surcharge as well. As a result, its advantage for the first time homebuyers who get more opportunities to buy a property as the participation of foreign buyers at auctions has decreased.
Real Estate Buyers Agents Association (REBAA) president Rich Harvey stated that with interest rates earmarked to stay low and with fewer investors in the market, 2019 would be a great time for home buyers to move up the property ladder. The interest rates could stay on hold in 2019.
Negotiation will be crucial to securing a good deal so independent buyer representation from an accredited REBAA buyer’s agent is highly recommended. Investors who have finance approved, or are cash buyers, are encouraged to take advantage of softer market conditions.
Tips for Borrowers
1) Plan your budget
Start organising your funds in a structured manner to enable you invest in your ideal home
2) Check your leases
Smart landlords study their existing lease details well before they are due to renewed. Residential vacancy rates, particularly in our biggest capitals, have been on the rise, so locking in good tenants on long-term leases will be advantage for the landlords, keeping you at loss
3) Get informed on Sale price Vs Rentals
Being well informed about markets help investors spot opportunities quickly. There is no substitute for studying actual completed sales or rentals in a suburb across a three to six month period in order to paint a picture of a market’s direction.
4) Contact your advisers
This is the best time to ensure you have an experienced financial adviser aligned with your ambitions for the year. The loan market is positive to relax the lending policies and improve efficiency for first-time homebuyers.
Your Finance Adviser will assist you to find best home loan in Australiathat suits your demand.
Buying a home is one of the most important financial decisions that we make. It involves a huge cost, perhaps the largest investment we make in our lifetime, however this ushers in peace and stability in one’s life. Most people who purchase or construct a home go for a Home Loan to finance their project. Repayment of the same is critical as it involves a substantial sum of interest that you need to pay over a period of time. Let us analyse some smart tips, which can help borrowers reduce their liability considerably.
Interest on Home Loans
The Reserve Bank of Australia is set to hand down its first interest rate call of 2019 in February following 26 months at it’s current record low of 1.5%. It could be a surprise if rate cut was anticipated few months ago, however, most economists are now beginning to flag the likelihood for the same.
A borrower must be vigilant to compare rates and push their lender for a better deal, or seek a fixed-rate loan. Alternatively, you could set up an offset account. Use a Split Loan Calculator and if you feel you are getting a raw deal, your may switch to other lenders with more competitive rates.
You don’t have to wait for a windfall to prepay a loan. Small but regular payments can go a long way in chipping away the loan tenure. While making prepayments, prefer tenure reduction over EMI reduction as the former will lead to greater savings in interest cost, If you keep up with or make extra repayments on your loans, you can get rid of your debt faster. You will save money in interest payments and take a financial load off your shoulders at the earliest.
Bank on Savings
If you have been wise with your earlier investments, liquated them to make prepayments. If the premiums are high and returns low, carry out a cost-benefit analysis to check if you can let go of the policy. The amount directed to premiums can come in handy for prepayment or bolstering your cash flows.
Increase EMI and Reduce tenure
If you neither have accumulated savings nor funds you need not feel depressed. After all, you take a loan only when you do not have the required funds upfront. But remember, when interest rates go up, do not extend the tenure, but maintain or, rather, increase the EMI amount. In case rates are reduced, opt for a shorter tenure instead of reducing EMI. This will help you pay off the loan faster.
Seek lower rates
Your home loan might have had the best interest rate going around at the time you got it, but rates change all the time. Increased interest rates can leave you paying more than you once were, and nobody wants that. Knowing how and why interest rates change can help you negotiate to get a lower rate.
Have A Contingency Plan
Life is full of uncertainty and while taking a home loan in Australiayou must be prepared for anything that can impinge on your ability to pay your EMIs on time. This will not only place an additional burden on you and cause undue stress but also have a negative impact on your financial rating.
Get a Financial Package
Contact your Mortgage Broker at the earliest who will advise you on variable rate discounts, free offset and transactional banking along with refinancing options if you are not happy with your existing lender and are looking for better interest rate assistance.
While buying a home or an investment property, your borrowing capacity is a consideration as important as buying the property itself. Your borrowing capacity affects the amount you spend on your property. However, this capacity can be improved so that you can broaden your choice of property. Given below are a few ways that help you increase your borrowing capacity-
* Know your credit score- While applying for a mortgage, the first thing that the lender would check would be your credit score. This would help you determine whether you are in a healthy financial situation and if there are any issues with your credit history. The results will tell you if you need to work on your credit score or if it is just fine to borrow the loan amount as per your needs.
* Reduce your debts- Credit score and personal loans are unsecured debts that are very expensive and as a result, reduce the amount that you need to repay on a mortgage. Using a Borrowing Power Calculator to determine how much amount you can borrow and allow you to understand whether you need to increase your borrowing capacity or not. If you increase your borrowing capacity, it would help you reduce your high interest rate debts.
* Reduce excess credit limits- You might want to get rid of all your unused credit cards and cut the limit on any cards to be on a safer side while applying for a loan. The lenders consider any credit cards to be drawn to their full limit. A Credit Card Calculator will help you determine the amount of debt you carry while allowing you to figure out ways of reducing excess credit.
* Choose the right loan- While looking up for a loan for your property, you must take time to consider the features of the loan you are borrowing. It is of utmost importance that the loan you borrow meets all your borrowing needs and offers you the interest rate that you can manage to pay easily. Experienced Mortgage Brokers in Australia will inform you about various types of loans that you may borrow with regard to your borrowing and repayment capacity.
* Organize your financial affairs- When applying for a mortgage, keeping all your financial records organized and in place, including your tax returns and having updated information on your income will save you time and efforts.
* Save money for your deposit- The more money you save for your deposit, the more will be your borrowing capacity. While offering you the loan, the lenders look for a consistent saving record; this implies that you can afford to pay regular mortgage repayments. You might also want to cut down your expenses such as your rent, utility bills, childcare costs, etc. This will ultimately help you increase your savings for your deposit.
* Split your liabilities- Instead of buying the entire property in your own name, you may consider splitting your expenses on-paper with your partner. For instance, if you prove that your partner can provide for your dependents financially, they may not be counted as your dependents in the application.
* Take a longer mortgage term- A comparatively longer mortgage term can reduce your monthly repayments. The longer the loan duration, the lesser will be the monthly repayments. However, this also implies that the total interest you pay over the life of the loan will be higher.
If you are shopping around for a mortgage, tools like Borrowing Power Calculator and Credit Card Calculator will of utmost assistance in your loan borrowing process. Getting associated with renowned and experienced Mortgage Brokers in Australia will make the loan borrowing process much easier and favorable for you. For personalized assistance, you may contact lending specialists from Your Finance Adviser.
With the wide availability of mortgage broker in the country, borrowing a Home Loan in Australia has become a difficult choice to make. However, getting in touch with the right mortgage broker for a loan for your property will help you in Home Loan Comparison thereby making you make a better decision in terms of interest rate and the process of documentation.
If you are looking forward to borrow a loan for your property, then getting in touch with a renowned mortgage broker will help you sail through the process with much ease. Although borrowing a loan for your property is not rocket science, getting assistance from professionals will benefit you from their experience and expertise. There are numerous ways of saving money while borrowing a home loan, however, the ones that are proven successful can only be explained to you by experts from mortgage brokers in Australia. The reason behind this is the experience and expertise that professional brokers bring along with them. While looking forward to borrow a home loan, you must keep the following in mind-
After having complete knowledge of the benefits of getting in touch with professionals from Your Finance Adviser for the process of loan borrowing, you should wait no more. Contact the experts from our team and let them guide you through the process of borrowing the loan, right from the submission of you application to the moment when you have actually moved into your new home.
If you are an entrepreneur of a new business startup or the manager of a Small to Medium Business Enterprise, you will certainly land up struggling to manage your team every day. The issues like limited funds, or unsuitable office infrastructure, among many others, need smart solutions. While the concept of recruiting virtually is still repellent for many old-school business organizations, the reality is that Virtual Assistant Australia are proved more productive in comparison with the in-office employees. Employees who work remotely tend to provide a fast, efficient and cost-effective means to move the business forward. All you need to do is manage your virtual team successfully. The Virtual team brings you a few tips to on-board effective offshore virtual assistants for your organization.
* Strengthen the core of your team
If you have just started building your virtual team, you must work on the roots of your team and focus on making the core strong. As your business grows, you will have to add in more members to your team which would ultimately involve string recruitment strategies. When you don’t have the employees of your team sitting beside you, you cannot afford your recruitment to go wrong. As a manager, you must focus on looking for adaptable personnel, who are willing to collaborate with multiple partners on various platforms. In the first place, you must ensure that your outsourced sales team is as willing to work flexibly as you are.
* Identify the areas that can be easily outsourced
Certain positions can be easily lent to remote working. These will, however, vary according to the needs of your business but are likely to include the jobs of Bookkeeping, Web Designing, Lead Generation, Digital Marketing, Graphic Designing, Accounting services, IT Support, Back office Processing, Customer Support, etc. The Virtual Team provides all these services and many more covering multiple industries of Telecommunication, Hospitality, Finance, Transport and Logistics, Healthcare, and Information Technology.
* Finding your Virtual Team
Nowadays, finding Virtual Assistant Australia to build your team is not a task as difficult as it seems to be. The question arises when you need to trust the person for getting the job done. The simple answer to this is to use a reliable virtual marketplace where your off-shore employees will get a genuine workplace with complete guidance and genuine acknowledgment for their performance. The Virtual Team offers all that your offshore virtual assistants may need to deliver effective results for your business. VT specializes in providing dedicated, cost-effective, highly skilled and qualified professionals, working remotely from India and trained by VT’s head office in Australia.
* Communication is the key
Once you have on-boarded your off-shore employees, you need to make sure that you have delivered them all the information that they may need to begin with the work assigned to them. You need to make sure that there is no communication gap between any of your employees. You may access options like hold online conference calls via Skype, Goggle+, Hangouts, etc. can be incredibly useful when it comes to setting the tone. While you sit away from your team, it is important that you encourage them with proper guidance and recognition in order to motivate them and keep them going. The Virtual Team helps bridge the communication gap by guiding your virtual employees towards the achievement of your organizational goals and provides them with the required acknowledgment and recognition eliminating your burden of effective communication.
Managing a virtual team is more beneficial than it is demanding. All you need is to get in touch with the Virtual Team and be ready to get the tasks done without any hurdles. The Virtual Team will take care of all the required processes of you outsourced sales team including the recruitment of your virtual employees, their documentation and joining formalities, to providing infrastructure and guiding them towards the accomplishment of your organizational goals.
Preparing for your first home loan? Don’t worry, Your Finance Advisor is here to guide you through the way. If you are wondering how much money should you save for your deposit before you submit your application for the approval of your loan, then you are at the right doorstep. The lending specialists from Your Finance Advisor assist you in the process of loan borrowing right from the time when you submit your loan application to the time you buy the house of your dreams.
Ideally, lenders expect you to submit a 20% deposit. For instance, if you are looking for a property worth $5,00,000, you should have a deposit of $1,00,000 ready with you. The money that you have with you as your savings will not only fund your initial contribution to the purchase price of the property but will also be used to pay the stamp duty, as well as any other fees and charges that may be associated with your purchase of the home.
However, 20% amount of the deposit is not fixed. Many lenders take a significantly lower deposit in comparison with the others. A number of lenders would also lend up to 90% or 95% of the value of your desired property. However, this would be possible only if you manage to meet their specific lending criteria. On the other hand, if your deposit is less than 20% of the value of your home, you would have to pay Lender’s Mortgage Insurance or LMI. Unlike other insurances that protect you, Lender’s Mortgage Insurance safeguards the lender in case you fail to repay the loan amount. LMI is usually a one-off payment made at the time of loan settlement. The bigger your deposit amount, the lesser LMI you would pay.
Most Australians are known to worry about their finances, however, they are not found doing much to make them better. Research states that 46% of Australians do not monitor their finances and take active steps to maintain good financial health. On the other hand, over 23% of the Australians worry about their money daily and almost half of the Australians agree that their finances are out of their control sometimes. Ignoring your financial health can produce sinister results, and may even lead to creating a detrimental impact on personal and family lifestyles. Surveys state that 1 in 3 Australians are suffering from significant financial stress, as a result, 80% of these people report psychological and physical discomfort.
It is required that you take active steps to improve your financial health in order to maintain your financial wellbeing. Have a look at Your Finance Adviser’s guide to some practical steps that you must take to improve and/or maintain your financial situation-
* Use a Budget Planner- Creating and then following a personal budget is one of the most significant and effective processes required to boost the financial well-being of an individual. Using a budget planner to create boundaries for yourself encourages you to take a disciplined approach to your spending and savings. Budgeting also helps in finding ways to put money into investments, pay for any personal expenses or simply manage the day-to-day living expenses.
* Keep a track of your expenses- When it comes to financial well-being, it becomes necessary that you keep a track of the smallest of your expenses in order to ensure savings. Small costs can quickly add up to huge bills. There is a whole range of applications available that help you track your spending even on the basic expenses. State-of-the-art cash flow management and budgeting solutions support you in the strategic financial process.
* Check your Bank and Credit Card statements regularly- Ignorance no longer seems to be bliss when the question is about your financial well-being. Keeping a close eye on your finances is essential to understand where your money is going, and where you have a scope of cutting down your costs in order to build your savings. This can be done in a planned manner using a credit card calculator. Overdrawing your account gets easier when you are completely aware of the available funds. Keeping tabs on your accounts helps develop awareness of your spending patterns as well as lets you pick up any unusual expenses, fees or incomplete transactions that you may not otherwise be aware of. You may use tools like credit card calculator in order to have a fair idea of how your financial health looks like.
Like any other procedure, maintaining the well-being of your finances could be time-consuming and would involve a lot of efforts. However, a Mortgage broker from Your Finance Adviser would make the process easy for you. A Mortgage Broker is a trusted adviser who has the power to help you realize your financial and lifestyle dreams.
A mortgage broker specialises in tailoring the investment-related solutions for borrowers. By going to a bank directly for borrowing a loan, you put yourself into paying huge borrowing fees and long never-ending procedures along with high interest rates. A mortgage broker, on the other hand will handle your borrowing procedure and guide you throughout while also using tools like Borrowing Power Calculator.
Read below to know why you should rather move to a Business Loan broker and not let the banks fool you into loan borrowing-
* Banks don’t advertise the interest rates that they offer on the loan borrowed. This makes it difficult for you to compare the interest rates with other banks or lenders, hence you won’t know if you could get a better deal somewhere else.
* While borrowing from a bank directly, you will be directed to different departments and long procedures. Bank managers are ultimately measured on their budget and their return on equity. This shows that managers focus on the bank’s profits, and not the benefit of their customers.
* Banks may also over charge you on the interest rate, if your financial situation is not entirely in your favour and later use it as an excuse to charge extra.
* Banks won’t let you have an idea what its competitors can offer. Taking advantage of this, they charge you as much as they can.
* Banks would notice if you have a loyal customer since a long time and in such cases, banks wouldn’t offer you many options considering that it would be unlikely for you to leave them.
* Business loans are governed by the National Consumer Credit Protection Act 2001 (NCCP Act) which implies that banks don’t have strict lending policies.
Commercial lenders look at business applications like a return on their investment and not the other way round. Mortgage broker helps you make the application process simpler and will negotiate strongly on your behalf. You may get in touch with the lending experts from Your Finance Adviser and understand how a Mortgage broker will be able to help you in your loan application process over a bank. Some of the benefits are listed below-
* Property buyers want to someone to handle their property paperwork without any hustle. Brokers make their application process easier and beneficial.
* Brokers devote dedicated time to their customers, thereby solving all their investment related needs.
* Since brokers are experienced in their jobs, they are aware of the current interest rates in the market. Brokers have strong ties with the relationship managers at several lenders.
* Brokers also have a very strong negotiation power so they help you bargain on the interest rate whilst saving your expenses.
* They may also help you gain an estimate of how much loan you can afford by using tools like Borrowing Power Calculator.
However, you must check that -
* Your Mortgage broker has Certificate IV in Finance and Mortgage Broking
* The broker should be an active member of the Mortgage and Finance Association or the Finance Broker Association of Australia.
* Look for a mortgage broker that is “accredited” and is able to write loans with a wide range of banks, second-tier lenders and customer-owned banks.
It is advised that you focus on working with a Business Loan broker that gives you a better chance of getting your loan approved for a “well-priced” loan that suits all your needs.
The financial year is almost about to end, which implies that now is the right time to work on your investment strategies, whilst bringing in new strategies to benefit the return on your investment. Getting in touch with business loan broker and Mortgage broker from Your Finance Adviser will help you pass this season easily, whilst helping you learn from the mistakes that you might have made the last year. If you have already been leading business for a while now, you must be able to relate and follow the following.
* Prepare a Plan of Action- Estimate the expenses that you would be incurring in the coming year and wherever possible, make sure you pay them ahead of time and make some valuable savings in tax. These expenses may include paying leases, business insurance, business-related travel, telephone, and IT services. You must also take some time to complete a thorough stocktake and write-off all the damaged and unusable items. If you haven’t started yet, it is time to organize your invoice, receipts, credit card statements, employee records, and all the other business related transactions. You may also use tools like mortgage calculator to create an estimate of your expenses.
* Taxation- Australians who are self-employed find themselves in tricky situations during the time of taxation it is of vital importance that your business stays ahead of all the tax obligations. If you had to face a number of hindrances while meeting your tax obligations the last year, then you may want to re-consider your savings and expenses. You may also decide to create a separate savings account this year into which you can deposit the amount that you set aside to pay your taxes.
* Superannuation- Self-employed Australians do not automatically have huge contributions made for them each pay cycle. If you are a sole trader, you won’t have to make superannuation payments for yourself. However, it is advised that you make some personal contributions in order to prepare yourself for retirement. You may also claim a deduction for contributions that you would make to your superannuation.
* Play safe- You have already invested a lot of time, money and efforts in your business and hence you may not want to take any risks with the success of your business. Availability of online tools such as mortgage calculator for assistance in such calculations may help you make more informed and wise decisions. To ensure this, you must safeguard your income with insurance. You may also claim tax deductions on the premium that you pay on getting your income protected, whilst saving yourself some time.
* Take the assistance of a professional- Whilst you may be able to manage most of the plans for your financial year by yourself, you should never underestimate the value of qualified, professional and expert advice. You must always consider consulting professional accountants, as they would definitely help you avoid mistakes that would affect your financial situation negatively and allow you to make the most of your deductions.
To gain professional guidance to safeguard yourself and your business this financial year, you must get in touch with the Mortgage broker from Your Finance Adviser. Their personalized and dedicated support from expert business loan broker will help you make the most of your financial investments this financial year.
Two of the most important decisions in a person’s life are starting a family and purchasing a home. Both need careful planning, to say the least – especially when they are set to happen at nearly the same time.
For many of these buyers, it can be difficult to find a lender who will be open-minded enough to give them a loan while they are on maternity leave.
From the banks’ perspective, borrowers on maternal leave are considered high risks, given that they will only receive minimal income for a certain period of time. There is also a chance that they will leave their employment for good, making banks hesitant to let them borrow funds to finance their homes.
While most banks and lenders have strict regulations and limitations on their mortgage products, there are some which will be able to accommodate expecting or soon-to-be-parents.
Just like a regular mortgage application, you can borrow as much as 80%, or 90% in some cases, of the total value of the property if you meet the eligibility criteria. Of course, the rule of thumb is to borrow below 80% of your home’s value if possible, as to avoid having to pay for mortgage insurance.
The banks will be assessing your income, assets, and liabilities to see if you will be able to meet the monthly repayments of the loan. It is important for lenders to know if you will be going into a paid or unpaid maternity leave – the latter will give you a much better chance of approval.
When applying for a mortgage while on maternity leave, you have to supply your lender with particular documents to prove that you are capable of making repayments.
Recent payslips from the three months prior to your leave are usually required by banks, as well as a letter from your employer indicating the details of your absence including the date of your anticipated return, your tenure, and income.
You also have to submit documents that would paint a clear picture of the other expenses you have to be responsible for while on leave. This includes utilities, childcare, and healthcare services, among others.
Banks oftentimes consider how long you will be on leave in the approval process of your mortgage. Ideally (from the lender’s perspective), your leave should not last over 12 months.
The shorter your leave is, the more likely it is that a bank will approve your loan.
During the first stages of pregnancy, you will still be able to fulfil your responsibilities at work and will usually still be paid your normal salary.
For the most part, it is actually better to apply for a loan while you are pregnant and working than to do it while you are already on leave. This way, you will be able to utilize the remaining months before you give birth to buff up your finances.
Also, it is definitely better to inform your lender if you are pregnant, given that this would actually result in lifestyle changes that would impact your ability to make mortgage repayments on a monthly basis. They will be able to better serve you if you are honest about things related to your home loan application.
Some banks and financial institutions offer some features on their mortgage products that would allow you to go on a repayment holiday. This is when you are allowed to take a break from your monthly responsibilities for a period of time. However, to avail this, you should have had your home loan for at least a year.
It should be noted, however, that you might have to pay the rest of your loan within the original term. This means you might have to pay an extra to make up for your missed payments. In such cases, you might have to make extra repayments to act as a buffer.
If you are a first home buyer, be sure to check out the benefits that your state may offer.
As banks step up their efforts to regulate mortgage lending in Australia, home buyers need to have a sound financial health.
To increase your chances of getting the green light for your home loan, you really have to have an ample amount of savings before you take your maternal leave. After all, purchasing a home should really not be an impulsive decision but a carefully-planned one.
It is also suggested to consult a mortgage brokers. Applying while on maternal leave is already complicated and you will need the network of these brokers to find the right bank and lending institution which will be receptive of your current conditions.