Your Finance Adviser

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.

What are the chances of you getting a home loan?

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.

Which documents do you need to prepare?

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.

Does the length of your maternity leave matter?

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.

Will it be better to avail of a loan while you are still pregnant?

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.

Will you be able to avail of some benefits while on maternal leave?

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.

What can you do to increase your chances of getting approved?

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.

While you are in the process of borrowing a home loan, you must be sure of the interest that you should be paying. Even though Mortgage brokers help you gain an estimate of the amount that you must repay, learning it on your own even before getting in touch with a mortgage broker would help you understand how mortgage repayments work and how you can reduce them. Mortgage repayments have two parts- paying back the money you borrow – the principal amount and the interest charged by the lender. This interest amount, however, adds up to a huge amount of money in addition to your loan amount. However, there are multiple factors that affect the amount of your interest repayments.

In case of Guarantor Home loans, the loan is advanced for a duration of 5 years, after which the borrower will have reduced their loan amount up to 90% of the property value, thereby lowering the risk to the lender. Guarantor Home loans do not carry any limitations to borrowing and are available even to people with poor credit history.

Interest on the home loan is generally calculated daily and then charged to you at the end of each month. You will be paying the outstanding loan amount at the end of each business day and multiply it by the interest rate that applies to your loan and later divide it by 365. To work out on how much interest you would be giving to the bank while repayment of the loan, you may input the details into the mortgage calculator at Your Finance Adviser. Given below are a few factors that affect the amount of interest you pay-

• The Reserve Bank official cash rate decided the interest rate on your loan basis the official cash rate set by the RBI. The official cost of borrowing can prompt the lenders to charge a higher or lower amount of interest.
• The amount you borrow is directly corresponding to the amount of interest that you pay. The bigger the principal amount, the more the interest to be paid.
• The Outstanding loan amount shows that as you gradually pay off the money you borrow, you will be paying the remaining interest on a small amount, thereby gradually reducing your interest payments.
• The loan term or the time you take to pay off your loan affects the amount of interest you pay. Paying your loan off over a shorter period will minimize your interest repayments.
• The Repayment frequency decides the amount of interest you pay each time depending on your repayment schedule. More the frequency of repayments, lesser the interest to be paid.
• Having an offset account allows you to reduce the amount of interest that you pay on your loan.

Each lender or bank has a wide range of different loan options with varied interest rates. A good mortgage calculator will help you estimate your interest repayment amount and make a better choice. Given below are a few important terms to be understood while considering interest rates-

• Variable Rate Mortgage- A variable rate implies that the interest rate may vary over the loan period. A number of internal and external factors decide the cost of variable interest rate.
• Fixed Rate Mortgage- A fixed rate means that the interest rate is fixed for a specified period, usually between 1 and 5 years. A fixed rate mortgage tells you exactly how much your repayment will be over the agreed period.
• Comparison Rate- A Comparison rate appears alongside the advertised interest rate with all home loans. A Comparison Rate is a comparative indication of the overall cost of servicing a mortgage once all the fees and charges have been considered.

To conclude, the interest on your home is calculated daily but charged monthly. A mortgage calculator from Your Finance Adviser will take into account only the fixed and variable interest on home loans, and give you an indication of how much interest you are likely to pay.

Research is the name of the game when it comes to purchasing a home: everyone wants to get the best value they possibly can. It takes a lot of effort, and that's just learning about mortgage options and property investments Tools. It' so in depth that one of the most important aspects of the process, the best time to buy a home, rarely makes an appearance, even in otherwise comprehensive lists.

Before we dig deeper into the best time to buy a residential property, though, we need to tackle the best time to apply for a home loan.

When to apply for a home loan?

Before you get into the fun part of visiting properties and going to open houses, it's important to look into getting a pre-approved loan if you're really looking to buy. That way, when it's time to make an offer, the seller will know you're serious.

You can certainly apply any time of the month for a loan, but there is a window of time where most lenders are keen to serve your needs as a borrower – the first week of the month. Why? Because it marks the start of the period when lenders gather applicants and process applications.

The middle and end of the month are the time periods where things get heavy for lenders, as they want to close off loans at the end of the month. If you apply during these times, you might feel like you are not being properly attended to or prioritized.

When is the best time to buy a house?

There are some people who believe that they should base their purchasing decisions on the seasons. While it might sound too good to be true, it's actually the case that each season has different impact and effect on the real estate market.

Spring.

Described as the busiest period for property sellers, flowers in bloom marks the start of stiff competition among prospective buyers. Many people turn up to open house inspections during this season, as many of them want to settle in their new houses before vacation starts.

Because of the high volume of mortgage activities that accompany the crush of would-be homeowners, property prices are inevitably higher here. It's a seller's market through and through. 

Summer.

With endless sunshine and Christmas break in tow, summer is when most mortgage deals are sealed.

Sellers take advantage of this season as the weather starts to lighten and brighten the surrounding, which creates a good backdrop for domestic properties – especially those with in-demand extras sought out by prospective owners, like a good garden, or a pool.

Similarly to the spring,a high demand for properties will boost prices. Fortunately for buyers, this can be offset by an abundance of options to choose from, so summer offers a slightly better chance of finding the right home for you.

Autumn.

This marks the beginning of holidays, which can cause a dent in the real estate market as one of the most-courted homebuying groups – families – will, most often than not, be on vacations with their kids.

Now that the peak of the year's house buying frenzy is dying down, there is less competition among buyers, so the prices will naturally come down, even if only slightly.

Of course, The drawback to this is there may potentially be fewer properties up on the market – vendors often hold off on selling homes while they wait for the next hot market so they can take advantage of buyers willing to pay full price.

Buyers, though, can take this time to reach out to vendors to try and negotiate prices, as well as terms and conditions.

Winter.

The prime time for property buyers, the cold weather gives purchasers the chance to snag their own residence for a lower price tag. Why? Because of a lack of competition.

Properties up for sale during this period usually suggest that the vendors are hoping to get some quick cash through a fast sale. As a result, they are usually willing to compromise with the buyer on terms and conditions, even the price. Of course, a slower market means that prospective owners will have a smaller number of properties to choose from, which can be a downside for particular buyers.

Start of the New Year.

January is usually the trough of the real estate market, with November and December being the crest.

The first month of the year is likely the most opportune time to for buyers to get a house since they can be able to find a bargain on a property that was passed in before Christmas as most buyers also want to settle in before vacation starts.

Another good thing about purchasing properties during the beginning of the year is that most transactions will be regarded as a private treaty sale, wherein price negotiations along the way can be made between the two parties.

Before stepping into the never-ending process of borrowing a loan, it is advised to be sure of how much your pocket is willing to accept. You must be clear of the funds that you already have, and the amount that you can spend on your purchase. While buying the property of your desire, you must not neglect your financial situation and ignore how much you can afford to spend.

The better way is to make the calculations beforehand and plan your budget accordingly. This can be done using various calculators from Your Finance Adviser. Mortgage calculators help you estimate your expenses and plan your purchase of the property accordingly. How much amount you can borrow depends on the following-

• The amount you to borrow in relation to the property’s value
• Your credit score
• Your income
• Your outgoings

Although the Lending specialists from Your Finance Adviser will help you gain a clear perspective of how much you can borrow and you, you may also get a rough estimate of the amount that you must borrow on your own using mortgage calculators. Given below are a few most common types of mortgage calculators that you may use while borrowing a loan.

• Borrowing Power Calculator-

Borrowing Power Calculator tells you your ability to borrow more funds. An individual or an organization with a huge amount of assets and lesser liabilities is likely to have a greater borrowing power than an individual or an organization in an opposite situation. Borrowing Power Calculator helps you determine the loan amount that you are eligible to borrow basis your financial situation. This is largely determined by your income, your financial commitments, your current savings, and your credit history. You must also consider your spending habits and any other existing commitments such as personal or automobile loans, credit card debt or any other expenses. Your income is a crucial factor in determining how much mortgage you can have. Traditionally, mortgage lenders apply a multiple of the amount of your income to decide the amount that you are eligible to borrow.

• Income Tax Calculator-

Income Tax Calculator helps you calculate the tax that you’d be required to pay on gross wages paid in equal amounts. The interest rates are obtained from the Australian Tax Office, on which no allowance is made for tax deduction, Medicare or other payments. If in case, you have paid more tax than what you actually needed to (as stated on your group certificate or payment summary as the amount of tax withheld), you are eligible to get the difference back as a tax return. Alternatively, if the amount of tax that you have paid is incorrect, you will be required to make up the difference and pay the remaining amount. Income Tax Calculator helps you determine all this and make an estimate of the amount of your income that you’d be redirecting to the tax office.

• Credit Card Calculator-

Credit Card Calculator helps you determine the time that you will take to pay off your card with only minimum repayments and the time and money you will save by making higher repayments. Using a Credit Card Calculator, you can establish how soon you could pay off your card balance and how much interest you are likely to pay. By paying a little amount extra every month, you can pay off your credit debt faster and end up paying lesser interest.

Using these calculators, you can pre-plan your purchase of the property in a better way and meet your financial goals smoothly. Lending specialists from Your Finance Adviser assist you with proper guidance throughout the process of loan borrowing and make sure the process of the loan borrowing is hassle-free.

Whether you are buying a home, a commercial property, or establishing a business, you need to have a stick of extra funds in your pocket. However, with countless expenses, it gets difficult to arrange more funds than the basic requirement. In such cases, loans come to the rescue. Whether you borrow loan from a bank or a mortgage broker, the never ending loan procedure carries the capability of taking all your peace away. Lending specialists from Your Finance Adviser help you keep away from that situation.

Before borrowing a loan, it is of utmost importance that you have a complete information of what type of loan suits your needs and how should you move on with the procedure. Read below to understand the most common types of loans that you may need to borrow-

* Commercial Property Loans- The overall business growth is the result of growing sales and increased production, along with added expenses. An increase in the expenses of your business leads to an increase in your need for funds. To meet with the growing needs of your business, you may seek commercial property loans. Commercial property loans fulfill all the requirements of your business quickly and effortlessly, fulfilling your need to finance the purchase of your business or the expansion of your business.

* Business Loans- When you start or enter a business of your own, you would realize the amount of hidden expenses that you would be asked to meet. Businesses usually require a large amount of money to pay for expenses, such as purchase of office infrastructure, upgrading business equipment, advertising expenses or staff wages, etc. Approval for a business loan in Australia does not ask for any particular qualifications. However, the loan application of people without experience in running a business would likely be declined.

Additionally, borrowing a business loan in Australia costs you expenses like Interest rate- charged on the balance of the loan or overdraft facility, Ongoing fee- charged for the administration of the loan, and Upfront fee- which is a charge for establishing the loan.

* Guarantor Home Loan- The only way to borrow a home loan with zero deposit in Australia is through Guarantor Home loan. A Guarantor is the person who agrees to pay for other’s loan if that individual cannot afford to pay for his own loan. A Guarantor loan comes without any limitations to borrowing and credit check. The process of borrowing a Guarantor Home Loan is comparatively fast and helps you save thousands of dollars keeping you away from paying the Lenders Mortgage Insurance (LMI).

The guarantor can either show his property as security for the borrower’s loan, known as Security guarantee. He can also vow to use some of his income to finance the borrower’s loan, usually referred to as the Serviceability guarantee. The guarantee is removed around five years after the first loan is advanced. By this stage, the borrower will have reduced their loan amount to 90% of the property value, lowering the risk to the lender.

To borrow any of the loans of these types or others, you may get in touch with the lending specialists from Your Finance Adviser. Simply give us a call at 02 8322 6895 or enquire on our website.

While borrowing a loan, you have a variety of options to choose from. You may choose to borrow from banks, large mortgage companies or even mortgage brokers.

Mortgage brokers act as middlemen between the homeowner and the mortgage lender, whereas a broker prepares your loan application, financial documents, and issues mortgage pre-approvals just like other lenders. Mortgage brokers work with several mortgage lenders and banks and submit your loan file to them to issue the loan. Brokers charge commission from lenders for completing the mortgage application and documents.

A Bank or a mortgage lender is an organization that actually funds the loan. The homebuyers start working with the loan officer who is an employee of the Bank. The loan officer has access to the home loan programs that the lender offers. Working directly with the lending company instead of a Broker can save you some cash on fees. There are a number of factors that you must consider while choosing to borrow loan from a mortgage broker or a Bank/Lender.

• Mortgage Brokers shop interest rates for you and help you compare different terms such as fixed-rate mortgage v/s adjustable rate mortgages, no deposit home loans, etc. and advise you on various other terms to tailor a loan that fits all your borrowing needs.
• With an imperfect credit, mortgage brokers take the lead in the borrowing process by proposing more programs to you than what you may actually qualify for. Tools like Mortgage Calculator will help you understand and estimate the expense that you would be incurring.
• Mortgage Brokers bring along a lot of experience with them, which provides you with sufficient knowledge and information, to begin with, the process of loan borrowing. You may also have access to more loan programs, especially if you have had a low credit score or income issues. You may also ask your mortgage broker to look for no deposit home loans.
• Following up for your loan approval, along with the long procedure of loan borrowing can be a frustrating task. Mortgage brokers have a set process of following up and chasing them if required whilst keeping you informed and saving your time.
• Brokers often own their businesses and are committed to their clients in the long term, with expert industry experience. Banks, on the other hand, move their staff around which leaves their customers struggling between various bank officials.

Based on the type of loan that you are seeking, you may save yourself thousands of dollars by shopping for various lenders for your mortgage loan. Therefore it is imperative that you take the decision carefully only after complete research and study. Check the credentials of the mortgage brokers, ensure that they have an experienced background and that they are dedicated to their work, which is helping you buy the house of your dreams.

Do you find the extensive process of borrowing a home loan too time-consuming and may take up a lot of your efforts. Well, you are not alone in the process. Every home buyer goes through the same process and faces the same difficulties while borrowing a loan. And that is where home loan brokers come in.

Surveys suggest that a large number of Australians are not confident with financial literacy. The survey stated that only 41% of the Australians are confident that they have the right home loan to suit their needs, while there are only 15% of 18-29-year-old home buyers are confident. Listed below are a few important Home Loan terms that you must be aware of before stepping into the process of loan borrowing-

• RBA Cash rate- The RBA cash rate plays a major role in deciding how you will repay your home loan. The RBA decides to raise, cut or hold the cash rate based on the current state of Australia’s economy. The cash rate is extremely significant as it helps determine the interest rate that your lender will charge which will further affect your repayment amount. The official cash rate, along with the cost of funding causes the lender to raise or cut rates after the RBA makes a cash rate decision.
• Comparison rate- Law says that two rates- the interest rate and the comparison rate both need to be advertised on any home loan advertisement. The interest rate shows how much interest will be charged as a percentage of the loan, whereas a comparison rate is a standardized calculation of the interest rate inclusive of all the fees and charges. The comparison between multiple interest rates will keep you away from bad credit home loans and will help you secure low deposit home loans.
• Offset Account- An offset account is a saving account attached to your home loan. The offset account allows you to reduce your home loan without physically putting money into the loan. After the calculation of the interest, the balance of funds in the offset account gets added to the loan. This implies that with an offset account, instead of earning, you are paying less interest on your loan.
• Redraw facility- The redraw facility serves as a valuable tool to save interest, significantly reducing the home loan term, whilst having access to your savings, if you need it for other expenses. Some loans allow you to pay extra into the loan; Redraw facility gives you the ability to access those additional payments when and if you need them. The additional funds are paid into the loan, thereby reducing the balance of the loan that the interest is calculated on.
• Interest only payments- An interest only home loan is when the borrowers only have to pay the interest and the fees, for a fixed period of time. During this period of time, the repayments are a low lower than the principal and interest home loan. Once the interest-only period of time ends, the home loan will get back to the principal and interest home loan over the remaining term.
• Honeymoon rate- This is a tool used by the lenders to pull customers in. Lenders offer the Honeymoon rate at the beginning of the loan period. After the honeymoon period wears off, the interest rate increases.

Growing business implies growing sales and increased production, along with added expenses. More the expenses, more the funds you need. To cater to the growing needs of your growing business, you have commercial property loans to the rescue. Whether you need the funds to finance the purchase of your business or you are looking forward to expanding your business, a commercial property loan will fulfill all the requirements of your business quickly and effortlessly.

• Under a commercial property loan, you can borrow about 80% of the property price.
• Commercial property loans are to be paid off over the considerably shorter time period.
• In a commercial loan, you will be assessed on a range of different criteria that could alter the interest rate you end up with.
  
  
• For a larger loan, the lenders may even want regular access to your financial details in order to ensure that you are in a solid financial position.
  
  
• Commercial loans attract additional fees, keeping the property valuation more expensive.
• A commercial property loan does not have any ongoing fees and is available for any worthwhile purpose.
  
  
• The interest rate on a commercial loan is directly in line with the risk of your business or property other than commercial operations of your business.
  
  
• A commercial property loan allows you to make any flexible repayments or extra repayments of the loan.
  
  
• The loan pricing may vary based on the commercial property loan deposit, the gearing level, location and nature of the business.

Here is all that you must know about getting a commercial property loan-

• Type of security to be presented

To borrow a commercial property loan, you must present either of the below commercial property loan deposit types-

• Industrial factories or commercial entities
• Factories/ Manufacturers/ Car Repairs
• Childcare Facilities
• Aged Care Facilities
• Hotels/Motels/Pubs
• Service Stations
• Vineyards/ Food manufacturing
• Restaurants/ Bars/ Cafes/ Fruit and vegetable shops
• Other specialized securities
• Documentation

Before you start with the loan process, make sure that you have the following documents-

• Identity proof
• Address proof
• Proof of your income
• General Security Agreement (GSA) over the property and any of your business assets.

What is important is to get your loan approved. You may be prepared with the above-mentioned documents, etc. but you must also work on ways that will help you get your commercial property loan approved. Find below a few tips-

• Work on your choice of the lender. Make sure that the lender that you move to specializes in the type of finance that you are looking for. If you get in touch with a mortgage broker like Your Finance Adviser, they will compare different banks for different client types.
• Ask your Mortgage brokers to use tools like a mortgage calculator and give you an estimate of the interest that you would be paying for the amount that you borrow so that you plan your expenses accordingly.
• While going to a lender, you must highlight the strengths of your application and present your situation to the bank in the way the bank prefers to perceive it. Your Mortgage broker will help you respond to the forms and templates that your bank wants you to fill in, keeping you away from all the confusion and saving you time.
• If the bank does not approve your loan right away, then you must negotiate and see if you can resolve the problem. You can try negotiating with the bank by providing additional information with regard to their concern, changing your situation to better match their lending guidelines, or negotiate pricing to match the risk of your application.

To avoid stepping into complex situations while borrowing a commercial property loan with a bank, it is advisable that you seek the assistance of lending specialists like Your Finance Adviser. Their experience and specialization in the field, relationships with the banks, awareness of the competitive pricing in the industry, friendliness with the tools like a mortgage calculator, and flexible lending policies all help you gain an edge over the others while getting your loan approved.

Buying a home is one of the biggest investments that you make in your entire lifetime. Irrespective of the number of times you make such an investment, you must do it right. Since you’re not an expert in the field, there are high chances that you might make an error in the process of borrowing a loan. To avoid any risk of failure, you must take the assistance of a Mortgage Broker in Australia.

 

A Mortgage Broker can also be referred to as a Loan expert. The brokers give you professional advice that matches the needs and demands of the property you are willing to buy. Here are a few reasons as to why it is better to use a mortgage broker while borrowing a loan instead of sailing in the boat all by yourself.

• Brokers shop around for you. Mortgage brokers guide you through the home buying process, starting from application, liaising with your solicitor, compiling the documents, all the way to settlement. In a way, brokers teach you how to buy so that you don’t stress yourself out during the process.
  
  
• Brokers are not tied to any particular lender. Without being partial, brokers look up for lenders and products that best suit your requirements and make them available for you. This saves you time and money, avoids confusion and improves the chances of your loan getting approved.
  
  
• Mortgage Brokers don’t charge you for the services they offer. Mortgage brokers do not charge you for the services they offer unless you have a complex situation or you are only borrowing a small amount.
  
  
• Since the brokers are highly professional and experienced in their job, they are aware of the behavior of the lenders’ credit policies. Their expertise in negotiation keeps you away from being overcharged on interest rates by the lenders and finds you the best deals.
  
  
• It is a broker’s job to stay updated with the latest changes in the policies and interest rates for the benefit of all its customers. Because of this, mortgage brokers possess the ability to offer you a variety of loan options. They help you select a loan and manage the process through to settlement.
  
  
• Being involved with a Mortgage Broker in Australia indirectly takes you to a wide network of Lenders looking to secure your finance, allowing the brokers to research your options quickly and effectively. This gives you a variety of choice of borrowing and hence makes your application process faster and easier.
  
  
• Regardless of their business model, the mortgage broker saves you time, effort and money, in most cases in selecting a suitable home or a commercial loan. They help you avoid taking out a loan that you might regret later and plan for a better mortgage.
  
  
• With the use of tools like a Home loan calculator, brokers give you a clear estimate of the funds that you would need. They create a transparent picture of how your savings and expenses would look like in the coming future.
  
  

The brokers direct you to the lenders who are best suited to your circumstances while advocating on your behalf. Lending specialists from Your Finance Adviser do all this and much more for you. Our vast variety of tools like Home Loan Calculator help us estimate your current financial situation and then move ahead it. We start the process considering your needs and then end it fulfilling all of them.

Getting a business loan can be an exhausting process. Struggling with the process while you are busy looking for a property for your business could add to the pressure. The extended steps involved in the process demand a lot of investment in time and efforts, while still keeping the chances of ‘rejection’ open for your application. It is, therefore better to look up to a Business Loan Broker in order to ensure a smoother process.

Irrespective of the size of your organization, you will need guidance on how to get a business loan without any hurdles in the process. Read the steps below to ensure an assured approach to getting a loan for your business.

• Work on your credit score- Your Credit score is one of the most influential factors when it comes to getting approval for a business loan from most sources. To maintain a good credit, you must keep a continuous check on your score and alter it for any errors, even before you submit an application for your loan. If you’re leading a small business, then it is implied that you wouldn’t have got enough time to maintain a good credit score. In such cases, the lenders would check your personal credit. Your credit score is a direct indicator of your ability to repay the loan and hence, is taken quite seriously by the lenders. To avoid any risk of failure, it is suggested that you set up automated payments for your loans.

• Build a healthy business- No matter how long your business has been running, it’s performance so far is going to be one of the most important factors for the lenders. He will be concerned about the revenue with the solid cash flow in your business; the more stable your cash flow, the more are your chances of getting the loan approved. Whether it is through increasing your customer base, encouraging your returning users or even raising your prices- you must work on finding ways to increase your revenue and not letting your funds run dry.

• Be sure of your documents- When applying for a business loan, the lenders will ask you for at least two years of your income tax returns and at least three years of bank statements. You may also have to provide any contracts and legal documents pertaining to your business. The lenders may also want to see documents such as articles of incorporation, business license or registration, commercial real estate documents or leases, contracts with suppliers, etc. Being over-prepared would never hurt. You must be ready with all the documents beforehand to avoid any confusion later.

• Make the right choice- While there are innumerable lenders giving out Business Loans Australia, choosing the lender who has the ability to meet all the needs for your business loan is an important decision to make. Before reaching out to the lender, you must do a complete study on the organization’s background and its past customers.

Mortgage Broker like Your Finance Adviser helps you make the right decision and make the process easier for you. When you start with the business loan application process, having lending specialists from Your Finance Adviser by your side, doing complete research and over-preparing for your application definitely increase your chances of approval.

Investing almost all of your funds in a property is a big call, and hence must be taken carefully. Investment related hiccups or setbacks could cost you heavily, and not just financially but in multiple other ways. It is important that the decision of investment is taken only after complete research and study of the property you are going to buy. While making an investment, if you get impressed by the property but not have enough funds, you may also borrow investment property loans. Your Finance Adviser brings you some valuable tips that you must keep into consideration while buying a property.

• Location-
• While making any investment, you must consider the location where you are planning to invest. There must be chances of growth in terms of population, economy and local infrastructure.
• You must be familiar with the location where you are investing your funds. This does not imply that you should invest in your own neighborhood, but in areas where you are aware of your potential investment location.
• You must take this call on your own by researching well about the area, starting from information related to vacancy rates, demographics to council spending and capital growth rates.

• Return on Investment-
• Before investing, you must keep a check on the return on investment that you would yield out of your property. Be sure of the rental yield trends when deciding on an investment property. You can make the decision easier using various property investment tools online.
• The investment that you make should be in your favor not only in the present but for the future as well. It must be capable enough to offer you valuable returns. Review the latest vacancy rate data in your desired area; investing in an area with low vacancy rates significantly limit your chances of an empty property between tenants.
• For instance, while markets like Sydney have been great for capital growth, they are expensive to buy and equally expensive to hold as well.

• Future prospects-
• Find out what plans would work the best in your area and then determine what your future would look like. If you believe that future growth prospects are high in a certain area, you may also choose to borrow investment property loans.
• Do some research on Government and Council websites that display information on infrastructure projects online. With this information, you can get in touch with the local council for a detailed review.
• It is also prudent to keep an eye on commercial projects such as schools or shopping hubs going around your area. Such residential developments directly imply higher investment-related growth prospects in the future.
  
  

• Maintenance cost-
• Look for a property that you can rent-out immediately unless you have plans of renovating the property before renting it out.
• For instance, properties with pools or large gardens demand a lot of care, whereas a smaller flat with a grassed backyard is much easier to maintain.
• However, you must not ignore the needs that your tenants would have. While cutting down on the maintenance cost, do not ignore the necessities of your tenants.

Assistance helps. 

While taking few of the biggest decisions of life, assistance from experts in the related area is something that never harms. Buying your first house is one such big decision that you’d make, and it is of utmost importance that you take every step of the way carefully. 

When you’re borrowing a loan for your first home, you can either shop around for a deal for yourself directly or take the assistance of a Mortgage Broker. Because of the lack of expert advice, looking around for a deal on your own would involve a huge risk if you yourself aren’t a Broker. Moreover, going ahead in the process, a Mortgage Broker will keep his best foot forward while dealing with the lenders’ credit policies. Hence, meeting with a Mortgage Broker who would guide you on your way of buying the house of your imagination is the safest way out. Even when it comes to borrowing a mortgage via a bank, your Broker will deal on your behalf, thereby offering you higher chances of success in the process. You may choose to use a Home loan calculator online to gain an idea of the amount that you can afford to invest before going out to your Broker. 

A Mortgage Broker will take the responsibility of assessing your situation and your creditworthiness in order to display a clear picture of your eligibility for the home loan and the amount that you’d be able to borrow. A Mortgage Broker will take your information and then focus on finding a loan option that meets all your needs. The lending specialists from Your Finance Adviser have access to vast database of information related to the available lenders, thereby helping you choose the best option available after complete research and study. Since Mortgage Brokers are specialized in the field, they will have expert answers to all your queries and suggestions to all your problems. The brokers will help you in detailed home loan comparison, thereby offering you the deal that best suits your needs and demands of the future. 

All that you need to take care of is find a broker who is highly experienced and holds a renowned place in the finance and mortgage industry. You can also gain a better understanding of which Mortgage Broker would be able to meet all your investment related needs by asking them a few relevant questions. You may also go through Your Finance Adviser’s guide on what should you ask your broker. Brokers undoubtedly have a better negotiating power than anybody else and thus manage to get you a better interest rate for your loan, in comparison with what your banks might offer. 

Talking of the history and the repeated surveys in the past, it has been observed that the customers usually have a great experience and return to a broker for their next home loan. Moreover, for most home loans, a Mortgage Broker is available at your service free of any cost. Additionally, Mortgage Brokers are known to provide a personal touch. They work on a paid commission basis, which implies that they invest a lot of time and efforts in your application. This makes you rest assured that your Broker will work hard to get your loan approved, offering you sound services.  

The Lending experts from Your Finance Adviser are experts in credit; they will directly answer all the doubts burning in your mind, instead of directing you to other sources. For complete assistance on borrowing your first home loan, you may Request an obligation free face-to-face meeting with our Qualified Lending Specialist or Call us at 02 8322 6895. Our experienced Mortgage Brokers will be available at your service, anywhere and at any time of the day. 

When it comes to buying the house of your desire, Your Finance Adviser takes the lead!

Author: Mehak Bagla 

While you are already spending a sufficient amount on your desired home, you must try to save from every hook and corner possible. An investment as big as yours would definitely ask for a lot of cost-cutting and penny-pinching.

You must make sure that the money and efforts that you have an investment in the purchase of your property do not go down the drain.

Going through the procedure, you should avoid as many expenses as you can. While there are some expenses that can be kept away with, there are some that you cannot skip. While choosing the right mortgage deal, you must consider not just the interest rate but also the fees that come along with it. To keep you aware of the costs that you would be incurring while buying the house of your desire, Your Finance Adviser, your Lending specialist for Mortgage Insurance has the Ultimate Guide to all your Home Loan expenses.

 

1. An expense of $150 to $700, depending upon the amount of loan, Application cost could be a part of your establishment, start-up or set-up fees. This is, however, a one-off charge, to be paid at the start of the home loan application. As a special promotion, some Lenders also waive this charge on their mortgage products.

2. An expense of $100 to $300, depending upon the location of the property, the Valuation fee covers the cost of an assessment of your property by a third property. This third party valuation allows the lenders ascertain whether the amount that you are willing to borrow and the down payment are in line with your ability to repay. This cost is quoted on your application.

3. An important expense in the process of Loan Settlement, Conveyancing charges are uncertain and are estimated by the Conveyancer. These charges include the costs involved in the transfer of the property’s titles from the vendor to you.

4. An expense of $50, the Search Processing fee, charged by the Banks covers the cost of a title search or any other searches in regard to your application.

5. Varying on the basis of location (State), cost of the property, and whether you are a first home buyer or not, the Government fees is charged by and payable to the Government as an expense of the stamp duty on the mortgage.

6. An expense of a minimum of $100, Legal costs cover the services and preparation of legal documents for the home loan. The documents include the settlement agreement and contract, which is to be handled by the legal team.

7. If you are borrowing an amount more than 80% of the value of your property, you will be liable to pay Lender’s Mortgage Insurance (LMI) to your lender. This amount works in favor of the Lender in situations when the borrower fails to repay the home loan. The amount to be paid is in direct proportion to the value of your property.

8. There are certain Ongoing costs on some loans that need to be paid on a monthly or annual basis. These costs include-

* Monthly Service Fee, ranging from $5 to $15; covering the administration and servicing of your loan.

* If you have borrowed a Package Home Loan with a special discount on the interest rate, your Lender will charge you an Annual fee, ranging from $300 to $400.

* Your Lender might charge you with Repayment charges if your agreement is such that you would make some extra repayments to settle your loan earlier than expected.

* Making extra repayments and withdrawing them using a redraw facility entails a Redraw fee. Some banks offer this feature for free while others charge at least $50.

* Banks and other lenders may charge you for paying beyond your cut-off date, known as the Late Payment Cost.

* Switching fee is charged when you decide to switch from a variable interest rate loan to fixed interest rate product or vice versa.

* Portability fee covers the transfer of your home loan from one property to another.

* Discharge fee is charged when you end your deal with your lender either due to the settlement of the home loan, refinancing, or transferring to another bank.

9. While you terminate or finish your home, the following costs are to be incurred-

* Ranging from $150 to $400, your lender might charge you one Discharge fee to cover the completion of the mortgage process and paperwork, when you have successfully paid your home loan in full.

* If you decide to pay off your loan within three to five years of establishing the loan, you will be charged Deferred Establishment Fee.

The fee charged by varies from lender to lender. While borrowing a Home Loan in Australia, you must make sure that your Lender is renowned and trustworthy. There are certain banks that waive off some fee while others charge their clients for the same.

The Lending specialist from Your Finance Adviser will offer you the best Home Loan rates and will guide you in the right direction throughout.