Abundance Financial Solutions Group in Caroline Springs, Victoria | Financial planner
Abundance Financial Solutions Group
Locality: Caroline Springs, Victoria
Phone: +61 406 989 889
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25.01.2022 CAN I RENOVATE A RESIDENTIAL PROPERTY I OWN THROUGH AN SMSF? If youre thinking of giving your home a total makeover using your SMSF, think again. Unfortunately, while you and your fellow trustees have some control over your fund, it doesnt mean you can spend your money however you like. The ability to renovate a residential property that you own through an SMSF comes down to how you purchased it. Those who borrowed through their fund to buy the property are restricted in wh...at they can do. Slight improvements and repairs can be made, but a full-blown renovation is saved for those who used the cash in their fund to buy the property. If you used the cash in your fund to buy a property outright, then you can absolutely do whatever you want, provided your SMSF deed allows you to do so, advises an Abundance finance broker. You can sub-divide, you can develop, you can pretty much do anything. Those who borrowed through their fund arent entirely prohibited on making improvements on their property. Repairs are allowed, but they cant be vast alterations that change the inherent character of the property. You can make the property more rent-able by updating things, but you cant go and completely gut it and change it, says the broker. If you really want to do some renovations and you had to borrow, the best way is to go outside your Superfund. Choosing to renovate your property ultimately comes down to increasing its value, but in order to do so, you have to be mindful how you go about it, advises the broker. Everyone wants to be a property developer, right? Theres no use dropping a whole heap of cash in a property where nothing in that street is in the same condition and its above the price point. Youve got to be conscious on what youre spending money on and what youre doing. Whether youre renovating to repair with borrowed funds or doing a complete makeover with accessible cash, renovating through an SMSF is only worthwhile if it improves the return on your property exponentially. Not playing by the rules or accessing your SMSF prior to retirement for personal gain can result in hefty penalties with fines up to 40 per cent of the fund value. Speaking to an Abundance Finance Broker, who specializes in and is educated in SMSF, can help determine whether its beneficial for you to renovate through an SMSF or to find an alternative.
25.01.2022 WHAT DO I NEED TO PREPARE FOR A HOME LOAN? Preparation checklist for investing Property investment is a lengthy and involved process. To ensure you have considered all that is required before making the big purchase, weve outlined the steps you need to take.... 1. Commit yourself A property investment must be a long term commitment in order for it to be worthwhile, so the very first step is to evaluate your budget, constraints and future obligations. Consider your future as far ahead as you can, says an Abundance broker. You need to ensure that your ability, commitment and financial capability can withstand a minimum of five to ten years, as thats what generally brings premium results. 2. Seek Professional advice The next step is to seek professional advice. It is your opportunity to ask as many questions needed to alleviate any uncertainty you may have. Whether youre chasing a great rental return, maximum capital growth or tax effectiveness, speaking to an Abundance broker will help you make the correct property investment choice, says the broker. Having an accountant, financial planner, solicitor and property manager on your team will also assist in ensuring that youve made the right choice. 3. Personal advice Talking to friends, family and acquaintances who have, or are currently considering investing, provides a fantastic world of advice, advises the finance broker. Anecdotal truths is least impacted by gain, so you can learn a lot from their advice and also from their mistakes. 4. Paperwork As well as proof of your current income, employment, debts and loans, gather any paperwork that helps support your character in the application. For example, if you have been a long-term tenant, get a 12 month tenancy legibility that proves your ability to make regular repayments. Before applying for a loan, minimize your current debt load, and if possible reduce the limit on any credit cards you have, as this is perceived by lenders as potential for debt. It is also advisable to have a fully assessed pre-approval before you start your search, as this will allow you to make an offer once youve found a property you like. 5. Key things to consider Abundance recommends choosing a property based on whether or not you feel like you could live in it. Its not an emotional decision, its still a business decision. But you also have to adopt the mindset that you could be selling to an owner/occupier down the track, which could be an emotional purchase. If however you plan to rent the property, your decision should be based on what would appeal to the type of individual who wants to reside in the area. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
25.01.2022 IS TIMING EVERYTHING? Ready to build or buy now, but havent yet sold your old property? Bridging finance could be the answer to keep the ball rolling. Trying to sell one property and buy another can be quite a daunting and emotional process, especially when the timelines of both projects dont match up perfectly.... Generally, people can be a bit nervous or anxious, but its an education process for them. One of the services that Abundance Finance Broker have offered clients in the past is assistance in applying for bridging finance, despite the fact that they dont financially benefit from handling them. A bridging loan is usually just an extension of the loan amount on a regular home loan, and it can cover the purchase price or construction costs of a new property while your old one is selling. Most lenders offer a period of interest-only repayments on bridging loans, allowing borrowers to get into their new home sooner without having to start paying off a full mortgage before selling the old one. Abundance Finance Broker are also well accustomed to negotiating rates with banks to get appropriate deals for their clients so they dont necessarily need to refinance to make savings when interest rates fall. They use their knowledge and other banks rates to drive rates lower. So occasionally, clients dont even have to change their bank. Finance brokers can often just negotiate a better deal to keep the banks honest. Talk to your Abundance Mortgage Solutions Finance Broker today.
24.01.2022 WHAT SHOULD I ASK MY PARTNER BEFORE APPLY FOR A HOME LOAN TOGETHER? Before you apply for a home loan with your partner, there are a few discussions that you need to have that go a little beyond what you may know already. Youve found someone you want to spend your life with (or a significant chunk of it, at least) the hard part is over, right? Wrong. You know each other well enough to know whether or not you each blow the budget every month, but you probably dont know each... others complete credit history. So, before you buy a property together, there are plenty of discussions you need to have. Here are three of them. Have they defaulted on any payments? He or she might be relatively debt free now, but has this always been the case? One bad mark on a credit file, such as a late car payment or a default on a credit card, will change the approach you need to take when applying for finance. It doesnt mean you cant secure finance, but it may mean you need to apply to a specialist lender for an alt-doc loan. Your Abundance Finance Broker can help you find the right lender and craft an application to avoid the heartbreak of continual rejection. That savings balance, where has it come from? If your partner has savings towards a deposit, thats fantastic. But the balance is only one part of the equation that lenders consider. If he or she has managed to build up those savings over a good period of time, making regular contributions and managing their savings well, lenders will consider this a positive indication of an ability to make repayments regularly. If, however, the savings are the result of a redundancy payout, a gift from family or backing a good horse, they are still helpful as a deposit, but dont indicate that ability to make repayments. Again, this is not the end of the world. Youll be in a better position than you would without that balance, but may need expert help to put your application in the best light. If we did get into trouble, how would you want to handle it? You must plan for every eventuality, even one you think is not likely. Having said that, this discussion isnt so much about having a solid plan in place for the worst, as seeing how your partner would deal with difficulty. If one of you lost your job, or you had unexpected bills that seemed overwhelming, would they try to struggle through, not wanting to talk about it with you or with your finance broker, and potentially default on the loan? Or would they tackle it head on by visiting your finance broker or lender with you to make a plan to get through it without defaulting? Before you start looking for a home to share with the love of your life, an appointment with an Abundance Finance Broker can help you iron out the details and secure the finance that suits both of you.
24.01.2022 I AM SINGLE, CAN I BUY A HOME? Are you flying solo and starting to think that buying a property will never be possible? Theres really no need to wait for a knight, or lady, in shining armour to come along, as securing finance on a single income does happen. Of course, just as if you were a couple, your borrowing capacity will depend on your income and commitments. But there are some differences. A single will probably have different requirements of a property than a couple w...ould. So consider: are you looking for a residential or investment property? What kind of deposit are you considering? Do you have dependents or children? You may also need to take extra precautions without a second income to fall back on. Abundance finance broker recommend that single-income clients sign up for mortgage protection insurance, in case they lose their jobs or suffer from an accident that could impact their ability to make repayments. An Abundance Finance Broker recently helped a single first-home buyer who wanted to live in the western suburbs in Melbourne. She decided to downsize from her large rental and buy an affordable studio in which to live. We looked at how much shes paying in rent and what shes currently saving. Then we looked at what was a good, comfortable spend for her and worked backwards from that, the Abundance Finance Broker explained. It wasnt as if she had to sacrifice everything, she just went smaller. As a single person, she decided shed be happy in a studio, as opposed to a bigger apartment in a location she wasnt as happy with. Another happy client this Abundance Finance Broker recently helped was a young professional who purchased her first investment property. She used her 10 per cent savings on stamp duty, mortgage insurance and her initial deposit. The property is now being rented out and is a good investment with borrowed return. An option for singles is to consider purchasing or building outside metropolitan areas in order to lower costs. When deciding whether such a purchase would be owner-occupied or an investment, you need to weigh up relocation or commuting costs, as well as any income losses associated with moving away from a city, against benefits available to first-home buyers who plan to live in their properties. An Abundance Finance Broker can use their industry expertise to help you find a property that matches your lifestyle and income. Talk to your Abundance Mortgage Solutions Finance Broker today.
24.01.2022 I REALLY WANT TO BUY A HOME, CAN A FINANCE BROKER HELP ME? There are many paths to successfully financing a property purchase. Recently, an Abundance finance broker helped a young couple, who had nearly given up hope, realize their dream. If at first you don’t succeed, ask more questions. That’s the motto of Abundance finance broker, who doesn’t let a history of refusals stand in the way of securing the right loan.... Recently, James and Gemma Champion*, who were keen to buy their first home but had had their loan application rejected twice already, were referred to him. They didn’t think they had a chance of getting the amount they wanted, and I wasn’t sure I could get them approval either, but I started asking questions, says the finance broker. It’s not enough to gather only the information required to submit an application; it’s important finance broker know what borrowers’ plans for the future are, whether they plan to renovate or rebuild, for example, and what their background is. He discovered, through his thorough work, that Gemma’s parents were open to the idea of a helping their daughter and her partner by acting as guarantor, using the equity in their own home. This started a whole new way of helping James and Gemma get the loan they required, the finance broker says. And there was another benefit that came out of this: it showed the parents that their own mortgage was not structured ideally for their financial situation. After discussions with both parties, he was able to organise a situation in which both the Champions and Gemma’s parents got the results they wanted. He recommends that any potential borrowers considering this kind of arrangement speak to an Abundance Finance Broker. With his knowledge of the industry and a wide range of lenders and products, James and Gemma’s property dreams were realized, and Gemma’s parents were able to restructure their own mortgage. Just as importantly, both parties went into the arrangement with a thorough understanding of the conditions and exit strategies, so there are no surprises in store. An Abundance Finance Broker can help you overcome hurdles to realize your property dreams.
23.01.2022 I DON'T KNOW IF I WANT TO BUY A BIG HOUSE OR A SMALL HOUSE? Its easy to understand why we look for the largest, most prestigious properties we can afford we are constantly urged to define our success by our possessions: bigger, better, newer, faster, shinier. A relatively recent counter-movement, however, urges lower impact, fewer goods and less consumption, and at its core nestles the tiny house. With the price of property ownership creeping skyward across most parts of A...ustralia and leaping into the stratosphere in others, a big home isnt always affordable to buy. Add the cost of energy and living, and big isnt always affordable to maintain, either. With the boom of environmentally friendly housing and a return-to-basics design mentality, a trend for micro housing has cropped up, producing some positively diminutive living arrangements. Whether its a one-room cabin with a loft for a bed space, a Japanese tree house or a converted shipping container, the trend in minimalist shelter has well and truly skyrocketed. Despite how innovative those ideas are, there is no denying that they arent suited to everyone. What could apply broadly, however, are their lessons in downsizing. Not only can people save money, but they can save time and energy, too. Its a good idea to consider the following benefits of smaller housing before buying the biggest home you can afford. Less expensive. Small homes tend to have smaller price tags. This can be the difference between living comfortably while saving for your future or an investment property, or worrying about what will happen if the market turns. Less debt also, generally, equals lower risk. Energy efficient. Having fewer rooms to heat and cool saves on energy costs and lowers your ecological footprint, too. Less maintenance. Big houses generally mean more maintenance. This applies to the week-to-week cleaning as well as the big responsibilities, such as clearing gutters, mending fences or painting walls, which cant be shirked if you intend to protect your investment. More time. All of the above leads to time saved for everything else. The more money and maintenance required for the upkeep of a home, the less time you have. For many, this is a lifestyle choice, but an important one nonetheless. Easier to sell. Smaller, more affordable homes are less likely to end up stranded in the property market. The more people who can afford to buy your home, the easier it will be to sell in future. While some lenders will only finance properties over a minimum square footage, an Abundance Finance Broker has access to a broad range of lenders and loan products to make sure they can find the perfect one for a tiny home. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
23.01.2022 I HAVE A HEADACHE WITH ALL OF THESE FINANCES? When a busy doctor who had worked with banks to set up finance for her investment properties visited an Abundance Finance Broker, she walked away with three more properties and a newly simplified finance structure that saved her money. Jenny, a doctor who had purchased six investment properties while working with bank loan officers, called on an Abundance Finance Broker to help her streamline the loans attached to the assets.... As I started working more closely with her, I discovered there was a complex web of loans attached to the portfolio, says the Abundance Finance broker. So it made sense to try to rationalize and simplify the loan structures. At the time, she had loans with three different banks and didn’t know which properties were used to secure individual loans. Each time Jenny bought a new property, she took out a new loan. As a result, there were multiple loans attached to each property, as she had accessed the equity in the existing properties to purchase additional properties. As well, many of the properties in the portfolio were cross-secured, creating a very complex arrangement. The problem we faced was that any refinancing would almost certainly have involved a massive exposure to lenders’ mortgage insurance, says the Abundance Finance Broker. But she had a huge plus in her favor: as a doctor, she was able to take advantage of a benefit some lenders give doctors so they don’t have to pay mortgage insurance. Knowing this, and knowing which lenders offered this bonus, meant the Abundance Finance Broker was able to restructure the loans attached to Jenny's property portfolio so that there was only one loan associated with every property, rather than two or three. We made sure none of the properties were cross-secured, making a very complex structure much more simple. It’s also certainly helped her accountant at tax time, the Abundance Finance Broker says. With the Abundance Finance broker’s help, Jenny purchased a further three investment properties, and now owns nine in various locations, worth approximately $4 million dollars.
23.01.2022 CAN AN EXPERT REALLY HELP, WHEN TIME IS OF THE ESSENCE? Sometimes, getting a deal over the line in time requires a conversation with an industry expert. Late last year, Martin Jones was seeking finance to purchase a share in an investment property with two other investors, and simultaneously trying to secure finance for an investment property he was purchasing on behalf of his wife Sandra.... The financial institution he was dealing with was frustrating him and jeopardising his plans; with settlement fast approaching, the valuation was taking too long to be finalised and Martin didn’t feel that he was being informed of progress. On Christmas Eve, Martin contacted his Abundance finance broker looking for help, hoping to find a solution by the time settlement came around on 12 January. He needed a fast solution. In Martin and Sandra’s first meeting with their finance broker, after talking through the problems they had encountered with the bank, it came out that their owner-occupied property was unencumbered. With that knowledge, the finance broker was able to recommend that they use a cash out loan to finance the purchase of both investment properties, which would speed up the process considerably a very handy development so close to Christmas time. The finance broker processed the application, and the valuation was completed on 27 December, with the loan approved and documentation sent out the next day. Martin, on his Abundance finance broker’s advice, was able to hand deliver the signed documentation to the lenders’ solicitor, meaning that the loan was settled on time, and Martin was able to purchase both investment properties.
22.01.2022 CAN I INVESTING IN COMMERCIAL PREMISES THROUGH AN SMSF? Some of the most important decisions a business owner will make are about their premises: whether to rent or buy, where to base the business and even the style of the property are important to get right. For those with an SMSF, there is one more option to consider: landing business premises and an investment property at the same time. Figuring out whether buying your commercial premises through your self-managed super fu...nd (SMSF) is an option thats suitable for you is imperative to the success of your investment. There can be many gains through purchasing commercial property through your SMSF, including creating a certain level of freedom by smart use of resources. It frees up capital for the business owner. They are unlocking super to do more for them, explains a finance specialist. Further to this, the property is protected against insolvency. Depending on the type of business, this can be particularly appealing. Theres a tremendous level of protection of assets within super, so it ticks the asset protection box for a lot of SMEs that may be subject to litigation due to the nature of what they do, the specialist says. Then there are the tax benefits. While it is in accumulation phase, income tax is only $0.15 in the dollar. In retirement, as the law stands, its zero, says the industry employee. This means that the money accumulated in an SMSF through the investment does not get taxed. On the flip side of the shiny self-management coin, Abundance offers a word of warning regarding obligation. There is an absolute element of responsibility on compliance matters. You are the trustee of an SMSF and you need to understand what those responsibilities entail, the finance professional warns. You must pay commercial rates for rent through a prearranged lease agreement and, although having a protected asset is great for some businesses, it also means that equity is locked within the fund. You cant take earnings elsewhere. Having a SMSF means you cant give all of this work to someone else to do for you, but you can seek advice. Many Abundance finance brokers have completed specialist SMSF lending and commercial property finance training, giving them the expertise to form an integral part of your team. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
22.01.2022 WHEN SHOULD I FIND A FINANCE BROKER? Saving for a home? If you haven’t met with a finance broker yet, it may cost you. Here’s why. When saving a deposit to buy a home, many people have a goal amount in mind that they need to save before they meet with a finance broker who will help them secure the finance.... If this is you, you’re probably doing it wrongly. From day one, when you first think, ‘I could maybe buy a house if I worked hard and saved a lot’, you’re ready to have a finance broker on your side. A finance broker’s knowledge of the loan and property market will help you work out how much you will be able to borrow, which determines the size of the deposit you will need to save. They will also be able to help you develop processes and a realistic timeline to save your deposit faster, and provide creative solutions that will help reach your goals sooner. You may also be pleasantly surprised to find that you are closer to your goal than you thought. The tools available to a finance broker that can help you realise your dreams more quickly and efficiently include lender’s mortgage insurance, specialist lending products, land loans and, for investors predicting significant rises in property prices, interest-only loans. More importantly than just being allowed to provide these products, an Abundance Finance Broker can help you work out whether they suit your situation and goals. For example, while buying land now to build on later lowers the cost of your initial investment and can be an opportunity to take advantage of reduced land prices, there is no point in it if you will not be able to secure construction finance down the track. So speak to an expert now. Talk to an Abundance finance broker who can help you take the first steps to owning your home.
21.01.2022 I HAVE A HEADACHE WITH ALL OF THESE FINANCES? When a busy doctor who had worked with banks to set up finance for her investment properties visited an Abundance Finance Broker, she walked away with three more properties and a newly simplified finance structure that saved her money. Jenny, a doctor who had purchased six investment properties while working with bank loan officers, called on an Abundance Finance Broker to help her streamline the loans attached to the assets.... As I started working more closely with her, I discovered there was a complex web of loans attached to the portfolio, says the Abundance Finance broker. So it made sense to try to rationalize and simplify the loan structures. At the time, she had loans with three different banks and didnt know which properties were used to secure individual loans. Each time Jenny bought a new property, she took out a new loan. As a result, there were multiple loans attached to each property, as she had accessed the equity in the existing properties to purchase additional properties. As well, many of the properties in the portfolio were cross-secured, creating a very complex arrangement. The problem we faced was that any refinancing would almost certainly have involved a massive exposure to lenders mortgage insurance, says the Abundance Finance Broker. But she had a huge plus in her favor: as a doctor, she was able to take advantage of a benefit some lenders give doctors so they dont have to pay mortgage insurance. Knowing this, and knowing which lenders offered this bonus, meant the Abundance Finance Broker was able to restructure the loans attached to Jenny's property portfolio so that there was only one loan associated with every property, rather than two or three. We made sure none of the properties were cross-secured, making a very complex structure much more simple. Its also certainly helped her accountant at tax time, the Abundance Finance Broker says. With the Abundance Finance brokers help, Jenny purchased a further three investment properties, and now owns nine in various locations, worth approximately $4 million dollars.
21.01.2022 I HAVE NO DEPOSIT, IS IT OK? If you have a stable income but dont have the cash for a deposit, an expert may help find a way to turn your dreams into reality. Robert and Brooke had a good, solid income but they didnt have a sufficient deposit to be able to buy a property. They had been knocked back after visiting various lenders, but, when they went to see their Abundance Finance Broker for help, it turned out that they just hadnt been given good advice.... Their Abundance finance broker suggested that they take a different approach and use family equity in place of a deposit. This meant including the value of the parents home in the total property valuation for the loan to bring their loan to valuation ratio (LVR) down to 80 per cent. As for the parents concerns, the Abundance finance broker was also able to explain the implications and the flexibility they had in terms of selling their property or downsizing. He helped them to understand that they could still help out without carrying a large financial burden or altering any plans they had. Robert and Brookes application was approved, so they no longer had to delay and miss out on their purchase. They also avoided paying lenders mortgage insurance (LMI). Four years later, they have been able to refinance, eliminating the family property from their home loan arrangement and maintaining the loan on their own. With the equity in their home, they are now working with their finance broker on a plan to purchase an investment property, which they would never have thought was possible four years ago when they had been told they couldnt buy at all. Visit your Abundance Finance Broker today to discuss your options when it comes to deposits.
21.01.2022 SHOULD I BUY A PROPERTY WITH MY FRIENDS? If you’re looking for a creative way to overcome being locked out of the property market by rising prices, buying a house with a group of friends may be a solution. It can also be a minefield though, so here’s how to avoid a blast. While the excitement of banding together in such a life-changing moment can put everyone on a bit of a high, you need to plan for situations in which things might go wrong....Continue reading
20.01.2022 I HAVE NO SAVINGS, COULD I STILL BUY MY FIRST HOME? Young couple Sam and Kate were keen to start paying off their own home rather than paying rent, but had no savings. Heres how they bought their first property. Sam and Kate Bowen were wondering why they were paying off their landlords mortgage instead of their own, but they didnt have the savings or financial history to convince a lender to give them a mortgage.... After being declined by two lenders, one a big bank and the other a smaller lender that they thought they would have luck with. They talked to their friends and the friend suggested them to speak to an Abundance finance broker. Therefore, they contacted the Abundance finance broker which is the friend of their friend. During my initial discussions with Sam on the telephone, I asked him several questions to help me put the pieces of his jigsaw puzzle together, says the finance broker . And, on paper, it certainly didnt look like a deal. As well as the lack of savings, the couple had a couple of other problems standing between them and a strong application: Sam had recently changed his employment and he had a small, paid default on his credit file. At their first meeting with their finance broker , which was held at Sams parents home, they discussed their needs and objectives, and mulled over whether the only option for them was to create a savings plan in order to purchase at a later date. The parents sat in the interview and wanted a solution, says Sam and Kates finance broker . It became apparent that a family pledge loan facility may be an option. This would involve Sams parents offering their home as collateral security. However they already had a small interstate mortgage on their property, so a refinance of this loan was required, their finance broker explains. After seeking their own legal advice, Sams parents refinanced through Sam and Kates finance broker at a lower interest rate. As well as being able to deal with a local finance broker , they also eliminated fees they had been paying by moving onto a more appropriate loan type for their situation. The family pledge loan facility meant Sam and Kate could borrow the full purchase price and other associated costs, without paying a $19,000 lenders mortgage insurance premium, says their finance broker . Sam and Kate are now out of their rental, and have moved into their new home.
20.01.2022 WHAT ARE THE RULES OF INVESTMENT THAT I SHOULD KNOW? When youre trying to secure finance for an investment property, its important to keep a few simple rules in mind to make sure you get the best deal possible and will be able to afford the repayments, come what may. If youre thinking about purchasing an investment property, its important to manage the risks adequately. For example, you shouldnt rely on rental returns as a guaranteed income to meet loan repayments, as th...ere are times when a property may be vacant or hard to fill immediately and some months the rental return on a property may be diminished by maintenance costs. An Abundance finance broker will help a borrower find the right product, so that he or she can afford the repayments, said one helpful adviser. The adviser will add a two per cent rate hike onto the rate the borrower will be looking to take, to make sure they can still make repayments if, or when, mortgage rates go up. Most investors will already have put some thought into where they would like to invest and will have an approximate price-range in mind. While a loan calculator is a great resource to start out with, a finance broker can use their expert knowledge to sense-check and flesh out your plans. With access to property data and trend analyses like RP Datas, a finance broker can pull property reports for you, detailing how the area has performed in the past as an investment, the average median house price or rate of return and how much the property values have increased over the past five or six years. These are details that investors generally cant access. Even better, if you meet a local finance broker in the area where you want to invest, he or she will know that particular market and be able to provide a lot of detailed information from working there every day. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
20.01.2022 WHAT SHOULD I WORRY FIRST: THE PROPERTY OR THE LOAN? Its easy to get carried away with the fun part of buying a property looking at houses but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan. Looking for a property to purchase is an exciting time. Choices regarding location, size, number of rooms and local amenities often see house hunters carried away in a deluge of daydreams and anticipation.... But, before you get carried away, its important to check off the essentials first. Although organising your finances may seem drab in comparison to perusing sales listings, gaining pre-approval with a lender will give you confidence about how much you can afford to borrow. First and foremost you need to determine if youre eligible to borrow money from a lender, says the lender. Your ability to repay the loan will need to be assessed you dont want to find out after youve [made an offer] that your credit history or deposit is not up to scratch. Arranging finance before finding the perfect property will put you in a good position when it comes time to make an offer. When you do find the house you have always wanted, you can present to the seller and estate agent as a prepared applicant who is serious and reliable. It shows you mean business, and gives them peace of mind that your financing will not fall through. Dont be afraid to let the selling agent know you have conditional loan approval in place, the lender advises. Sellers are most interested in completing their sale fuss-free and with steadfast funding, and showing that you are capable of both will help put you at the top of a potentially competitive list of applicants. In the instance that you find and secure purchase of a home without having your loan pre-approved by a lender, there are a few pitfalls that you risk running into. If you dont have financing to pay for your property, you run the risk of forfeiting your initial 10 per cent non-refundable deposit you need to put down to secure the property. This may differ depending on what state you live in, but the point is it always pays to be organised and have pre-approval in place, the lender says. Saving home loan applications to the last minute also leaves less time to find the most suitable loan and have it approved ahead of settlement. Arranging financing as an afterthought also adds immense pressure to the process of shopping around for the right loan and gathering the paperwork to prove you can service the loan, the lender explains.You dont want to rush this process. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
19.01.2022 CAN MY PROFESSION SAVE ME ON MY HOME LOAN? The lucky ones Accountants, lawyers and teachers are commonly eligible for home loan discounts, or particular loan types without fees, based on their professions. The benefits differ depending on specific professions, Otto Dargan, Managing Director at Home Loan Experts explains. It depends on what industry the lenders decide to target as its a constantly changing situation, so whats here today may not be around tomorrow.... An example of this is the slowing down of the mining industry in 2015, which saw mining engineers lose their in demand status and their profession-based discounts. Doctors take the cake Lenders have their own target lists of professions, but doctors are the big winners. They'll get waived LMI, lower interest rates and, in many cases, banks will even go outside of their normal policy to get their loans approved, says Otto Dargan, Managing Director at Home Loan Experts. However, not all medical professionals, such as psychiatrists, chiropractors, vets and pharmacists, are accepted by all lenders so its always advisable to confirm. How the perks work Simply being in a certain profession wont automatically save you on your home loan. To qualify you must apply with a lender that offers your profession a special discount and meet that lenders criteria. Youll often need to provide evidence of membership of a certain industry body such as the Australian Medical Association, advises Dargan. Waived LMI is usually approved without any problems if you meet the criteria, however your mortgage broker may need to negotiate to get a better interest rate as well. Because lenders dont publish these better interest rates, to benefit from the discounts its best to have your broker by your side. Not only will they know which lenders to apply to, they will also assist you with pricing requests and negotiating the best possible interest rate. Abundance Mortgage Solutions finance brokers are industry leaders who have the knowledge and expertise to find the most appropriate loans for even the most complex financial scenarios, including profession-based discounts. For further insight, talk to your Abundance Finance Broker today.
18.01.2022 WHAT IS CONSTRUCTION LOAN? If you are thinking of building your own home, you will need to be familiar with the ins and outs of construction loans. Construction loans are just not as straightforward as simple home loans. There are additional decisions to be made about the structure of the loan, additional documentation is required and the funding is released in an entirely different way....Continue reading
17.01.2022 I HAVE NO DEPOSIT, IS IT OK? If you have a stable income but don’t have the cash for a deposit, an expert may help find a way to turn your dreams into reality. Robert and Brooke had a good, solid income but they didn’t have a sufficient deposit to be able to buy a property. They had been knocked back after visiting various lenders, but, when they went to see their Abundance Finance Broker for help, it turned out that they just hadn’t been given good advice.... Their Abundance finance broker suggested that they take a different approach and use family equity in place of a deposit. This meant including the value of the parent’s home in the total property valuation for the loan to bring their loan to valuation ratio (LVR) down to 80 per cent. As for the parent’s concerns, the Abundance finance broker was also able to explain the implications and the flexibility they had in terms of selling their property or downsizing. He helped them to understand that they could still help out without carrying a large financial burden or altering any plans they had. Robert and Brooke’s application was approved, so they no longer had to delay and miss out on their purchase. They also avoided paying lenders’ mortgage insurance (LMI). Four years later, they have been able to refinance, eliminating the family property from their home loan arrangement and maintaining the loan on their own. With the equity in their home, they are now working with their finance broker on a plan to purchase an investment property, which they would never have thought was possible four years ago when they had been told they couldn’t buy at all. Visit your Abundance Finance Broker today to discuss your options when it comes to deposits.
17.01.2022 I AM SINGLE, CAN I BUY A HOME? Are you flying solo and starting to think that buying a property will never be possible? There’s really no need to wait for a knight, or lady, in shining armour to come along, as securing finance on a single income does happen. Of course, just as if you were a couple, your borrowing capacity will depend on your income and commitments. But there are some differences. A single will probably have different requirements of a property than a couple w...ould. So consider: are you looking for a residential or investment property? What kind of deposit are you considering? Do you have dependents or children? You may also need to take extra precautions without a second income to fall back on. Abundance finance broker recommend that single-income clients sign up for mortgage protection insurance, in case they lose their jobs or suffer from an accident that could impact their ability to make repayments. An Abundance Finance Broker recently helped a single first-home buyer who wanted to live in the western suburbs in Melbourne. She decided to downsize from her large rental and buy an affordable studio in which to live. We looked at how much she’s paying in rent and what she’s currently saving. Then we looked at what was a good, comfortable spend for her and worked backwards from that, the Abundance Finance Broker explained. It wasn’t as if she had to sacrifice everything, she just went smaller. As a single person, she decided she’d be happy in a studio, as opposed to a bigger apartment in a location she wasn’t as happy with. Another happy client this Abundance Finance Broker recently helped was a young professional who purchased her first investment property. She used her 10 per cent savings on stamp duty, mortgage insurance and her initial deposit. The property is now being rented out and is a good investment with borrowed return. An option for singles is to consider purchasing or building outside metropolitan areas in order to lower costs. When deciding whether such a purchase would be owner-occupied or an investment, you need to weigh up relocation or commuting costs, as well as any income losses associated with moving away from a city, against benefits available to first-home buyers who plan to live in their properties. An Abundance Finance Broker can use their industry expertise to help you find a property that matches your lifestyle and income. Talk to your Abundance Mortgage Solutions Finance Broker today.
16.01.2022 DO I NEED A HOME LOAN HEALTH CHECK? Circumstances can change, leaving your home loan less suitable than it was originally. A home loan health check can reveal if youre paying too much. Whats involved?... Your Abundance Finance Broker can do a full home loan health check for you either in person or over the phone. They will check if your loan is still competitive and still suited to your individual needs. Having an expert do this for you can also take the stress out of the process for you. It is advisable to get this check done at least once a year, or if your circumstances change. Questions to ask Be aware of what you want checked. Think about the following when you speak to your broker: Am I paying an unreasonably high interest rate? Am I paying high fees? Am I happy with the service I receive? Does my loan give me the features I need? Am I paying for features I dont use? Have my financial circumstances changed Benefits A home-loan health check will generally cost you nothing and could save you thousands. Your home loan features could be improved or you could find yourself with a lower interest rate. A better payment structure could also be introduced, making your repayments more manageable. Checking the state of your current loan could uncover the possibility of taking out additional finance, which can consolidate any other debt you may have or help you purchase an investment property. Contact your Abundance Finance Broker to organize your home loan health check today.
15.01.2022 WHEN SHOULD I FIND A FINANCE BROKER? Saving for a home? If you haven’t met with a finance broker yet, it may cost you. Here’s why. When saving a deposit to buy a home, many people have a goal amount in mind that they need to save before they meet with a finance broker who will help them secure the finance.... If this is you, you’re probably doing it wrongly. From day one, when you first think, ‘I could maybe buy a house if I worked hard and saved a lot’, you’re ready to have a finance broker on your side. A finance broker’s knowledge of the loan and property market will help you work out how much you will be able to borrow, which determines the size of the deposit you will need to save. They will also be able to help you develop processes and a realistic timeline to save your deposit faster, and provide creative solutions that will help reach your goals sooner. You may also be pleasantly surprised to find that you are closer to your goal than you thought. The tools available to a finance broker that can help you realise your dreams more quickly and efficiently include lender’s mortgage insurance, specialist lending products, land loans and, for investors predicting significant rises in property prices, interest-only loans. More importantly than just being allowed to provide these products, an Abundance Finance Broker can help you work out whether they suit your situation and goals. For example, while buying land now to build on later lowers the cost of your initial investment and can be an opportunity to take advantage of reduced land prices, there is no point in it if you will not be able to secure construction finance down the track. So speak to an expert now. Talk to an Abundance finance broker who can help you take the first steps to owning your home.
15.01.2022 CAN I BORROW A LOAN FROM VACANT LAND? Whether you are buying land for an immediate build, as an investment or for a one day I will build and live here dream, a vacant-land purchase can be financed by a range of mortgages. If you are planning to build immediately, or at least fairly soon, a construction loan might be the best option. Most lenders demand that building on a construction loan must start within a specified time, usually between one and three years, depending on ...which lender you use and whether the property will be owner-occupied or investment. This mortgage type allows you to draw down segments of the loan amount in stages as they are needed for the land purchase and then for the stages of construction which saves you paying interest on the entire loan amount when you dont need to be. If you dont plan to build immediately, and you want the loan for the land without any time pressures, a vacant land loan may be the best option. While regular mortgage types can be used for the purchase of vacant land, most lenders also offer vacant land loans. Most will go up to a 30-year loan term and finance up to 90 per cent of the lands value, and some go as high as 97 per cent loan-to-valuation ratio (LVR). Lenders mortgage insurance (LMI) would still most likely be payable on any LVR higher than 80 or 85 per cent, depending on the lender. The vacant land purchase can be used to increase the equity in your existing home or investment property and, while redraw facilities are usually not available on construction loans, they generally are on land loans. If you have stumbled upon the perfect position for your dream home, future holiday getaway or retirement oasis, but arent ready to plan building it yet, the next step is to speak to an expert about the different types of loans that can finance the purchase. Find an Abundance Finance Broker who can help you secure your patch for the future without having to build right away.
14.01.2022 I NEE AN EXPERT SOLUTION FOR MY CREDIT DEBT? Dana and Peter put everything they had on the line to start a family, including their credit and home loan. With the expert advice of a finance broker they were able to start fresh for their baby girl. Dana and Peter had professional careers and a new home, but needed help from a fertility clinic to make their family complete. The expensive treatments delivered a beautiful baby to the couple, but their credit was suffering as a res...ult. They were living off credit cards, nearly $70,000 in debt and spiralling as they took out new cards to bring others into the black. Peter had been to nearly all the local banks and none were able to offer a viable solution. It was then Peter met with their Abundance Finance Broker, who rolled up his sleeves to see what he could do. We worked out that Dana and Peter were paying above and beyond what was necessary on their home loan, and so we decided to switch the repayments to interest-only while they focused on getting their credit card debt in line, the finance broker explains. With three months of clear credit card history, Dana and Peter were then able to refinance the loan, and the finance broker checked in with the family every month to make sure their finances were on track. We worked on a budget that was reviewed every month to ensure it was realistic and working for their family, he says. It took four to five months, but the family was able to put credit card debt in order and have the refinanced loan settled, granting a new beginning on a fresh financial slate. Talk to an Abundance Finance Broker who can help find a solution to your mortgage problems.
14.01.2022 HOW CAN I INVEST ON A LOW INCOME? While you may not need a six-figure salary to invest in property, those who earn a relatively low income will require a little more creative thinking to start a portfolio. Here are some tips to help you get started. Find an investor-friendly loan...Continue reading
14.01.2022 CAN A FINANCE EXPERT REALLY SAVE MY LEGS? How do you match a loan and lender to your needs? Rather than running around finding out the details of each and every lender and loan, draw on the expertise of an Abundance Finance Broker. One of the benefits of working with an Abundance finance broker is the extensive menu of loan options they have at their fingertips. But given such a wide choice, how does your adviser narrow down the options to find the right loan for you?... Abundance Finance Brokers sometimes have access to more than 30 different lenders. These include the big four banks, second-tier lenders such as Macquarie Bank, Bankwest and Citibank, and a raft of niche lenders such as Liberty or Pepper, which offer loan options for people who may not meet the lending criteria of the top banks. When it comes to making loan recommendations, an Abundance Finance Broker looks at a number of different factors. First they’ll talk to the client about their goals. This might be to pay off the loan as quickly as possible, or to find a loan with the lowest interest rate possible. They may want a loan with a fixed term, or they may want a facility with a low fee structure. Each client is different. Abundance finance brokers give each client three loan options and makes sure the options meet their requirements across a range of criteria. If the borrower has no specific requirements, Abundance finance brokers will most often take into account interest rates, how fees impact the life of the loan and how portable the loan is. While interest rates are the most critical factor, it’s not the only factor. As well as the loan’s fees and interest rates, the lender must also match the client. Find an Abundance Finance Brokers who can match you to the perfect loan. Talk to your Abundance Mortgage Solutions Finance Broker today.
14.01.2022 WHEN SHOULD I FIND A FINANCE BROKER? Saving for a home? If you havent met with a finance broker yet, it may cost you. Heres why. When saving a deposit to buy a home, many people have a goal amount in mind that they need to save before they meet with a finance broker who will help them secure the finance.... If this is you, youre probably doing it wrongly. From day one, when you first think, I could maybe buy a house if I worked hard and saved a lot, youre ready to have a finance broker on your side. A finance brokers knowledge of the loan and property market will help you work out how much you will be able to borrow, which determines the size of the deposit you will need to save. They will also be able to help you develop processes and a realistic timeline to save your deposit faster, and provide creative solutions that will help reach your goals sooner. You may also be pleasantly surprised to find that you are closer to your goal than you thought. The tools available to a finance broker that can help you realise your dreams more quickly and efficiently include lenders mortgage insurance, specialist lending products, land loans and, for investors predicting significant rises in property prices, interest-only loans. More importantly than just being allowed to provide these products, an Abundance Finance Broker can help you work out whether they suit your situation and goals. For example, while buying land now to build on later lowers the cost of your initial investment and can be an opportunity to take advantage of reduced land prices, there is no point in it if you will not be able to secure construction finance down the track. So speak to an expert now. Talk to an Abundance finance broker who can help you take the first steps to owning your home.
14.01.2022 DO I NEED A HOME LOAN HEALTH CHECK? Circumstances can change, leaving your home loan less suitable than it was originally. A home loan health check can reveal if you’re paying too much. What’s involved?... Your Abundance Finance Broker can do a full home loan health check for you either in person or over the phone. They will check if your loan is still competitive and still suited to your individual needs. Having an expert do this for you can also take the stress out of the process for you. It is advisable to get this check done at least once a year, or if your circumstances change. Questions to ask Be aware of what you want checked. Think about the following when you speak to your broker: Am I paying an unreasonably high interest rate? Am I paying high fees? Am I happy with the service I receive? Does my loan give me the features I need? Am I paying for features I don’t use? Have my financial circumstances changed Benefits A home-loan health check will generally cost you nothing and could save you thousands. Your home loan features could be improved or you could find yourself with a lower interest rate. A better payment structure could also be introduced, making your repayments more manageable. Checking the state of your current loan could uncover the possibility of taking out additional finance, which can consolidate any other debt you may have or help you purchase an investment property. Contact your Abundance Finance Broker to organize your home loan health check today.
13.01.2022 SHOULD I BUY A PROPERTY WITH MY FRIENDS? If you’re looking for a creative way to overcome being locked out of the property market by rising prices, buying a house with a group of friends may be a solution. It can also be a minefield though, so here’s how to avoid a blast. While the excitement of banding together in such a life-changing moment can put everyone on a bit of a high, you need to plan for situations in which things might go wrong....Continue reading
13.01.2022 HOW CAN REDRAW AND OFFSET ACCOUNTS SAVE ME MONEY? Offset accounts and redraw facilities work in similar ways; they both allow you to reduce the balance of your home loan, and therefore the interest charged, by applying extra money to your debt. Redraw facilities allow you to deposit spare income into your home loan account, allowing you to redraw a sum equal to the extra repayment amounts in future.... In the meantime, the extra money paid will lower the amount of interest charged while still giving you access to your money. However, there may be restrictions on how much money can be withdrawn and when. For redraw, it depends on whether the facility applies to a fixed-rate or variable loan, a lender expert says. Most institutions only allow redraw from a variable-rate loan, or fixed-rate loan but with limited access. It is important to find out how a loans redraw facility works before taking it on, as the fees and restriction attached might outweigh the benefits of interest savings. Deciding between an offset account and a redraw facility on your home loan largely depends on how accessible you need your extra money to be. Offset accounts are like savings accounts that function alongside your home loan. You earn interest on the money in the offset account and you often have a debit card attached for simple withdrawals. Lets say that you are paying five per cent interest on your home loan and earning two per cent interest on your offset account, explains the lender. In a offset setup, the difference would be 3%, but would mean that the 2% interest that you earn is coming off the interest you are paying on your home loan. With 100 per cent offset accounts, you earn interest equal to the interest you are paying on your loan. Rather than earning savings account rates, you are earning home loan account interest rates on the money held within the offset account. Lets say you have $10,000 in your 100 per cent offset account. Instead of paying interest on your $100,000 loan, you are only paying interest on $90,000, the lender says. Thats probably the best type to have, if you are looking at offset accounts. Offset accounts, like many savings accounts, often come with account fees, but the fee may be worth the interest savings and the added flexibility compared to redraw facilities. There are less restrictions attached to 100 per cent offset accounts, theyre very flexible. But really, it does just depends on each lender, the lender says. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
12.01.2022 CAN I MAKE EXTRA HOME LOAN REPAYMENTS? Making extra repayments on your home loan can be a clever financial strategy. Investing your extra cash into your home can speed up your loans life cycle, with the added benefit of saving money in the long run. However, care must be taken to ensure that extra repayments are planned and the right type of loan taken out to allow for them. Every reduction in a loans principal balance reduces the interest paid for the life of the loan, mea...ning that extra repayments arent just a pat yourself on the back moment. They are a way to save serious amounts of cash, and weve explained previously how extra repayments can cut a 30-year loan term in half and save hundreds of thousands of dollars. Most borrowers will, over the course of their careers, find themselves with higher earning potential as the years roll by. Having the option to pay more off your home loan as your cash flow increases offers a firmer grip on financial freedom, so it is important to consider what type of loan will suit you best if you intend to make extra repayments in the future, as not all loans offer this facility. Generally speaking, almost every basic variable or variable-rate product will allow extra repayments, says the lender. You may be able to make extra repayments on a fixed-term loan, but there will usually be other restrictions involved. There are some fixed-rate loans that allow additional repayment, says the lender. The limitation there is that most fixed-rate loans dont allow any redraw. It is advisable to ensure that extra repayments are built into your home loan structure if you plan on paying more than your monthly minimum, to ensure that you dont get tripped up on break fees. Wells suggests going through your future plans with your finance broker to make sure that all of your future goals regarding your loan are achievable under the product you end up taking. The best broker is going to ask the questions as to what the client-specific purposes for the loan are, what their needs are in regards to the loan, the lender explains. Choosing a home loan that will allow you to make extra repayments should be a decision made with your other liabilities in mind, too. For instance, if one of your other debts is incurring higher interest, it makes more financial sense to pay that off sooner. You may also want to wipe off a separate debt completely to improve your cash flow. These are important considerations, as choosing a variable rate home loan may end up costing you more if you dont follow through with making extra repayments due to more pressing financial liabilities. At the end of the day, its the structure of the loan that is important to consider. You need to be able to facilitate your financial goals. Speak to an Abundance Finance Broker to find a loan that matches your current needs and future plans.
12.01.2022 WHAT ARE MY OTHER MORTGAGE REFINANCING OPTIONS? Many people refinance their home loan because theyre looking for a lower interest rate, lower payments or more flexibility. If that is your goal in refinancing, then you have a wide range of products to choose from. However here we look at some specific mortgage refinancing options people use to deal with some common situations. Bridging loan... Construction loan Equity loan or line of credit (LOC) All in one account Bridging Loan If you want to buy a new home, but you have not yet sold your existing home, you could use a bridging loan to tide you over. The maximum you will be allowed to borrow during the bridging period is generally limited to 80% of the combined value of both properties. Bridging loans tend to be at a higher interest rate than normal loans. But when you have sold your original home and repaid that mortgage, you can revert to a loan product with a more favourable rate. Construction loan or renovation loan With a normal loan, you borrow the whole amount up front and start paying interest from day one. The advantage of a construction loan or renovation loan is that you only draw down money as you need it to make progress payments. This can significantly reduce your interest payments. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
12.01.2022 IS TIMING EVERYTHING? Ready to build or buy now, but haven’t yet sold your old property? Bridging finance could be the answer to keep the ball rolling. Trying to sell one property and buy another can be quite a daunting and emotional process, especially when the timelines of both projects don’t match up perfectly.... Generally, people can be a bit nervous or anxious, but it’s an education process for them. One of the services that Abundance Finance Broker have offered clients in the past is assistance in applying for bridging finance, despite the fact that they don’t financially benefit from handling them. A bridging loan is usually just an extension of the loan amount on a regular home loan, and it can cover the purchase price or construction costs of a new property while your old one is selling. Most lenders offer a period of interest-only repayments on bridging loans, allowing borrowers to get into their new home sooner without having to start paying off a full mortgage before selling the old one. Abundance Finance Broker are also well accustomed to negotiating rates with banks to get appropriate deals for their clients so they don’t necessarily need to refinance to make savings when interest rates fall. They use their knowledge and other banks’ rates to drive rates lower. So occasionally, clients don’t even have to change their bank. Finance brokers can often just negotiate a better deal to keep the banks honest. Talk to your Abundance Mortgage Solutions Finance Broker today.
12.01.2022 I HAVE NO DEPOSIT, IS IT OK? If you have a stable income but don’t have the cash for a deposit, an expert may help find a way to turn your dreams into reality. Robert and Brooke had a good, solid income but they didn’t have a sufficient deposit to be able to buy a property. They had been knocked back after visiting various lenders, but, when they went to see their Abundance Finance Broker for help, it turned out that they just hadn’t been given good advice.... Their Abundance finance broker suggested that they take a different approach and use family equity in place of a deposit. This meant including the value of the parent’s home in the total property valuation for the loan to bring their loan to valuation ratio (LVR) down to 80 per cent. As for the parent’s concerns, the Abundance finance broker was also able to explain the implications and the flexibility they had in terms of selling their property or downsizing. He helped them to understand that they could still help out without carrying a large financial burden or altering any plans they had. Robert and Brooke’s application was approved, so they no longer had to delay and miss out on their purchase. They also avoided paying lenders’ mortgage insurance (LMI). Four years later, they have been able to refinance, eliminating the family property from their home loan arrangement and maintaining the loan on their own. With the equity in their home, they are now working with their finance broker on a plan to purchase an investment property, which they would never have thought was possible four years ago when they had been told they couldn’t buy at all. Visit your Abundance Finance Broker today to discuss your options when it comes to deposits.
12.01.2022 HOW CAN I SECURE CASH FAST? Small business owners know all too well that the unpredictable nature of the industry can sometimes mean that quick access to cash flow is needed. An Abundance Finance Broker, presents some of the options available to you when youre faced with a cash-shortage. Solution #1: equipment finance...Continue reading
12.01.2022 WHAT ARE THE POSSIBLE WAYS TO FUND MY RENOVATIONS? Any renovation project, large or small, can be all-consuming in terms of your energy and money. Here are six loan types that can help you with the latter. Considering transforming your home from blah to brilliant, but lacking the funds to support your major makeover? Never fear, weve rounded up a few different home renovation loans to help you turn your dream into a reality....Continue reading
08.01.2022 CAN A FINANCE EXPERT REALLY SAVE MY LEGS? How do you match a loan and lender to your needs? Rather than running around finding out the details of each and every lender and loan, draw on the expertise of an Abundance Finance Broker. One of the benefits of working with an Abundance finance broker is the extensive menu of loan options they have at their fingertips. But given such a wide choice, how does your adviser narrow down the options to find the right loan for you?... Abundance Finance Brokers sometimes have access to more than 30 different lenders. These include the big four banks, second-tier lenders such as Macquarie Bank, Bankwest and Citibank, and a raft of niche lenders such as Liberty or Pepper, which offer loan options for people who may not meet the lending criteria of the top banks. When it comes to making loan recommendations, an Abundance Finance Broker looks at a number of different factors. First theyll talk to the client about their goals. This might be to pay off the loan as quickly as possible, or to find a loan with the lowest interest rate possible. They may want a loan with a fixed term, or they may want a facility with a low fee structure. Each client is different. Abundance finance brokers give each client three loan options and makes sure the options meet their requirements across a range of criteria. If the borrower has no specific requirements, Abundance finance brokers will most often take into account interest rates, how fees impact the life of the loan and how portable the loan is. While interest rates are the most critical factor, its not the only factor. As well as the loans fees and interest rates, the lender must also match the client. Find an Abundance Finance Brokers who can match you to the perfect loan. Talk to your Abundance Mortgage Solutions Finance Broker today.
08.01.2022 CAN AN EXPERT REALLY HELP, WHEN TIME IS OF THE ESSENCE? Sometimes, getting a deal over the line in time requires a conversation with an industry expert. Late last year, Martin Jones was seeking finance to purchase a share in an investment property with two other investors, and simultaneously trying to secure finance for an investment property he was purchasing on behalf of his wife Sandra.... The financial institution he was dealing with was frustrating him and jeopardising his plans; with settlement fast approaching, the valuation was taking too long to be finalised and Martin didnt feel that he was being informed of progress. On Christmas Eve, Martin contacted his Abundance finance broker looking for help, hoping to find a solution by the time settlement came around on 12 January. He needed a fast solution. In Martin and Sandras first meeting with their finance broker, after talking through the problems they had encountered with the bank, it came out that their owner-occupied property was unencumbered. With that knowledge, the finance broker was able to recommend that they use a cash out loan to finance the purchase of both investment properties, which would speed up the process considerably a very handy development so close to Christmas time. The finance broker processed the application, and the valuation was completed on 27 December, with the loan approved and documentation sent out the next day. Martin, on his Abundance finance brokers advice, was able to hand deliver the signed documentation to the lenders solicitor, meaning that the loan was settled on time, and Martin was able to purchase both investment properties.
08.01.2022 SHOULD I BUY A PROPERTY WITH MY FRIENDS? If youre looking for a creative way to overcome being locked out of the property market by rising prices, buying a house with a group of friends may be a solution. It can also be a minefield though, so heres how to avoid a blast. While the excitement of banding together in such a life-changing moment can put everyone on a bit of a high, you need to plan for situations in which things might go wrong....Continue reading
07.01.2022 WHAT ARE THE ADDED COST OF PURCHASING MY PROPERTY? Buying a property carries more costs than just the purchase price, so dont forget to account for these extras. In addition to moving costs, council rates, strata fees, renovations and furniture, homebuyers face additional fees to complete their property purchase.... Stamp duty Stamp duty must be paid in order for mortgage documents to be legal. Its essentially a tax levied by the state or territory government on the purchase value of the property or the market value, whichever is greater. Legal costs The legal transfer of ownership of the property will require a solicitor, conveyancer or settlement agent. He or she will perform property and title searches to ensure the seller is entitled to release the property, for instance, by checking the strata body corporate records. Inspections Pest and building inspections are an added cost, but they can save you from dealing with a major building problem after the purchase is complete. The amount is often dependent on the size of the property. Agent fees First-home buyers dont have to worry about paying commission, since it is charged to the vendor of the property, most often as a percentage of the sale price. However if youre selling your current home to buy another, youll probably have to take these fees into account. Borrowing costs Lenders have application, valuation and settlement or loan approval fees that vary depending on the lender.finance broker are familiar with these fees and can help you take them into account when choosing a lender. Insurance Depending on your loan-to-valuation ratio (LVR), you may be required to take out lenders mortgage insurance (LMI). Although the borrower pays for it, LMI is not insurance for the borrower; it protects the lender should you default on the loan. You may also need building insurance if you are not purchasing a strata property. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
07.01.2022 WHY IS MY FINANCE BROKER IS CALLING ME? Wondering why your finance broker is contacting you six months after youve settled on your property? The simple answer is that a finance broker is with you for life. Youve scored the home of your dreams with the help of your finance broker and youve just popped the bubbly to celebrate. Congratulations!... When the bottles empty and youve settled in to your new home, youll notice your finance broker is still in your life, and you might wonder why after all, they got you the loan and earned their commission. Why would they still care how you are going? They know its a good idea to keep in touch every six to 12 months. After all, you should be reviewing your current loan every year and your finance broker can let you know how youre tracking along. Building a long-term relationship with your finance broker is a good idea as he or she will know the ins and outs of your circumstances and what you want for your future. Your finance broker will also stay on top of your account and, with expert industry knowledge, keep his or her ear to the ground for any new products or better interest rates that would benefit you. As well as expecting to hear from your finance broker every six to 12 months, there are a few times you should contact them. This is because if your life circumstances change, it may impact your mortgage. For example, you may be welcoming a baby into your home, you may receive a higher salary, your income may be temporarily reduced or you may decide to get married. Otherwise, you may want to refinance to a better a deal or consolidate your debts. You may also want to access the equity that you have accumulated in your home for a renovation, an investment or a holiday, all of which your finance broker can help you with. Even the most seasoned of investors benefit from staying in touch with their adviser, who can help them maximize returns later down the track. And if you decide to invest in property for the first time, your finance broker can help look for investment loan options to get you started. Talk to your Abundance finance broker who will be on your side long after the ink dries on your loan application.
05.01.2022 WHAT IS HOME LOAN PRE-APPROVAL? For those getting ready to stride into the world of home ownership, the uncertainties of pre-approval can cast a shadow of doubt over an otherwise exciting time. When is it necessary? How long does it last? And what does it involve, exactly? Pre-approval is a lenders assessment of your likelihood of being approved for an otherwise suitable loan. The appraisal is made on the basis of your ability to service a loan by looking into your living ex...penses and liabilities, your credit history, your employment circumstances and how often you have moved home or employment in the recent past. As it is performed prior to a property being found and chosen, it does not take into account the particulars of a specific property and valuation, which is why uncertainties can arise. Pre-approval is helpful for those who want to know how much they can borrow before attending open homes, and can be reassuring for new borrowers. When someone gets pre-approval they can start looking at properties knowing how much they can borrow. They know what their price range is, explains a lender. People take comfort in knowing that a lender has looked at their application to make sure it meets policy. Pre-approvals are usually valid for up to 90 days but, depending on the lender, may be renewed to allow more time to find a property. It is very important to note that a pre-approval is not a guaranteed loan. It is your potential lenders way of signalling how much they expect to lend you. This may change on your official application. Policies are changing day-to-day, week-to-week at the moment, a lender says. For anybody with a conditional approval, its a good idea to speak to their broker to find out if any policies have changed. Another thing that may cause a lender to decline your loan application after pre-approval is a change to your pre-approval circumstances. We need to make sure the applicant has not gone and got another credit card or car lease, or any other debt that may affect their income and serviceability, the lender says. Your pre-approval will also usually be conditional on a property valuation. If your lender does not deem the property a marketable asset, they may not approve a loan. We want to check that it is a readily sale-able property. Thats the biggest thing. To make sure the actual security itself is acceptable, says the lender. Potential lenders need to be wary of the changes that can affect their ability to take out a loan, regardless of pre-approval figures, to ensure they dont over commit without a guaranteed source of funding. Pre-approval is not a guarantee, but is a very useful tool for anyone looking for a property. Speak to an Abundance Finance Broker about pre-approval before you lock in your Saturday open home schedule.
04.01.2022 WHAT ARE THE POSSIBLE WAYS TO FUND MY RENOVATIONS? Any renovation project, large or small, can be all-consuming in terms of your energy and money. Here are six loan types that can help you with the latter. Considering transforming your home from ‘blah’ to ‘brilliant’, but lacking the funds to support your major makeover? Never fear, we’ve rounded up a few different home renovation loans to help you turn your dream into a reality....Continue reading
04.01.2022 WHAT ARE THE WAYS TO INCREASE MY LOAN REPAYMENTS? Paying off a mortgage can seem relentless every payment counts of course, but it can seem to be taking forever to make a dent. Here are some simple ways you can increase the amount you pay off and own your home sooner. Reducing the principle on your mortgage as quickly as you can means paying less interest, so your future payments are going even further towards reducing that principle. To find the ideal balance between the e...Continue reading
04.01.2022 WHO SHOULD I CONSIDER: SOLICITORS OR CONVEYANCERS? A conveyancer is a solicitor, but just deals with property, right? Wrong. The two are different, and it is important to have the right one on your team, in order to avoid paying too much while still getting the advice you need. Buying property is one of the biggest decisions most of us will make in our lifetime its something you want to get right.... Every Australian state and territory has different laws, forms, regulations and taxes associated with purchasing property, so having either a solicitor or a conveyancer will help the whole process run smoothly. A property purchase is one of the biggest financial commitments a person can make. It is therefore important to have professional advice about what you are buying, says an Abundance broker. Solicitors and conveyancers are familiar with all the procedures and, while it may seem to be just paperwork, when you are not familiar with all the procedures it can be very time consuming. For a straightforward property purchase, a conveyancer can do the job. Their main responsibilities include giving advice and information about the sale of property, preparing documentation and conducting any settlement processes. Although there is a licensing process for conveyancers, they do not have to be legal professionals. As a result, they are cheaper to hire. However, they can only provide information relating to property, so if you have additional legal questions, you might have to search elsewhere. Conveyancers must cease to act for a person as soon as the matter moves beyond conveyancing, the broker explains. When this happens, the conveyancer must refer you to a solicitor for advice. While conveyancers are limited to advising on your property purchase, solicitors can provide you with a wide range of legal advice in addition to your conveyancing needs, and may be necessary if your property transaction isnt straightforward. If there are other matters that affect the transaction like family law, asset protection, asset structuring, tax law or estate planning, you will not be able to receive advice from a conveyancer, the broker says. If things get complicated with a conveyance you will need to get a solicitors advice. Solicitors are more expensive, but the investment may be worthwhile if you anticipate any legal issues having this established relationship with a solicitor means you wont have to scramble for one later. Your Abundance Finance Broker will be able to refer you to a conveyancer or solicitor with the experience and expertise you need.
03.01.2022 HOW DO I KNOW I AM GETTING A GOOD DEAL FROM MY LENDER? With so many products offered by various lenders, it can be quite perplexing trying to figure out whether or not youve scored yourself a good deal on your home loan. While doing your research and comparing whats out there in the market is one of the most obvious ways to find out whether youre sitting on a good deal, it can be a time consuming practice and an overwhelming experience for those without specialist knowledg...e of the mortgage sector. Its good to shop around, and yes you can use comparison websites, but because lenders call like products different names, it can get very difficult comparing apples with apples, advises Gary Bieser, Owner of Mortgage Choice Concord. Brokers know the special names and pricing, so its worthwhile working with one as not only will it save you time but youll also get a well-rounded understanding of the advantages of each product. That understanding of each products pros and cons is essential, because the best deal isnt necessarily just the one with the lowest interest rate. It ultimately comes down to finding a loan that suits your plans - whether those plans are to pay the loan off as quickly as possible, to use it to fund renovations or investment down the track, or to pay the lowest total interest and fees over the life of a loan and to finding a lender that will provide that loan at the level of finance required. Imagine youre wanting to buy your dream home. Now, different lenders will lend varying amounts based upon the same criteria, says Beiser. So that could mean that the lender with the sharpest rate may lend $200,000 less than the one with a slightly higher rate. If you really want that property, youre going to have to go with the one with the higher rate, which may only make a few thousand dollars difference a year in interest repayments. Abundance Mortgage Solutions finance brokers have specialist knowledge of products from multiple lenders, to ensure you are getting a good deal. Talk to your Abundance Finance Broker today.
03.01.2022 WHY RBA RATE CHANGES AFFECT MY INTEREST RATE? With the RBA setting the official cash rate at all-time lows, its a good time to work out how this impacts the interest rate on your home loan and whether you are getting a good deal or not. When the interest rate on your home loan fluctuates, it can feel as though you dont have control of your debt. Despite being frustrating, interest rate changes are a part of every loans lifespan and warrant your consideration.... The interest rates that banks charge on their home loans are influenced by the Reserve Bank of Australias (RBA) cash rate. The cash rate is reviewed by the RBA on a monthly basis in order to safeguard Australias economic stability. The cash rate is the rate charged on loans made between the RBA and your lender. This, in turn, has a very strong impact on the interest rates your lender charges you. The RBA supports the banks with liquidity facility, explains a lender spokesperson. The RBA is a bank to the banks. The cash rate is effectively the rate at which the RBA will lend to the banks, and what the banks effectively use as a reference rate for other things. When the cash rate is changed by the RBA, lenders decide whether or not to mirror the new rate in the interest they charge their mortgagees. This is entirely up to the lender in question and depends on the market and how the lender is performing at the time of the cash rate change. If you look at the mortgage market, specifically by itself, it is very competitive, the lender says. It is about the lender trying to get the right outcome on the deposit side of the balance sheet within the context of a very, very competitive marketplace, but recognizing that a reference rate has changed and, therefore, looking at where they stand. Some lenders choose to shift their interest rate changes higher than the RBAs cash rate change and, in these instances, other lenders may be offering lower interest rates than the one you currently have. Keeping track of how your lender manages cash rate changes and where that leaves you as the person paying the interest can be time consuming, and is made more difficult by fees, charges and the flexibility offered by different loan products, which all need to be weighed alongside the interest rate. A simple way to regain control of your interest rate is to lock it in for a period, if you believe rates are not likely to fall further. Fixed rates offer less flexibility, but more certainty. For further insight, talk to your Abundance Mortgage Solutions Finance Broker today.
03.01.2022 I REALLY WANT TO BUY A HOME, CAN A FINANCE BROKER HELP ME? There are many paths to successfully financing a property purchase. Recently, an Abundance finance broker helped a young couple, who had nearly given up hope, realize their dream. If at first you dont succeed, ask more questions. Thats the motto of Abundance finance broker, who doesnt let a history of refusals stand in the way of securing the right loan.... Recently, James and Gemma Champion*, who were keen to buy their first home but had had their loan application rejected twice already, were referred to him. They didnt think they had a chance of getting the amount they wanted, and I wasnt sure I could get them approval either, but I started asking questions, says the finance broker. Its not enough to gather only the information required to submit an application; its important finance broker know what borrowers plans for the future are, whether they plan to renovate or rebuild, for example, and what their background is. He discovered, through his thorough work, that Gemmas parents were open to the idea of a helping their daughter and her partner by acting as guarantor, using the equity in their own home. This started a whole new way of helping James and Gemma get the loan they required, the finance broker says. And there was another benefit that came out of this: it showed the parents that their own mortgage was not structured ideally for their financial situation. After discussions with both parties, he was able to organise a situation in which both the Champions and Gemmas parents got the results they wanted. He recommends that any potential borrowers considering this kind of arrangement speak to an Abundance Finance Broker. With his knowledge of the industry and a wide range of lenders and products, James and Gemmas property dreams were realized, and Gemmas parents were able to restructure their own mortgage. Just as importantly, both parties went into the arrangement with a thorough understanding of the conditions and exit strategies, so there are no surprises in store. An Abundance Finance Broker can help you overcome hurdles to realize your property dreams.
03.01.2022 CAN A GUARANTOR HELP ME SECURE MY FINANCE? When youre desperately trying to save up a deposit for a home and just see the prices of property climbing and climbing, its difficult to remain patient. But there is another way: a guarantor can help. If you dont have a substantial deposit for a home loan, there are still a number of ways to obtain credit. These are known as family pledges and there are two types available to borrowers: service guarantees and security guarantees.... Service guarantees are less common that security guarantees, explains an Abundance finance broker, and they involve a family member guaranteeing all of the repayments on a loan, as well as being named on the property title. A drawback of this approach is that it usually means first home buyers are not entitled to any government grants, the finance broker explains. A more popular option is a security guarantee. Borrowers who have a limited deposit often use this approach. In this situation, a relative or friend (usually a borrowers parent or parents) is prepared to use the equity in his or her own home to guarantee the deposit of the borrower. For example, for a total loan amount of $600,000, in a security guarantor situation the borrower/s would take on the debt of 80 per cent of the value of their loan, which would be $480,000, in their own name/s. The loan for the balance, $120,000, is then guaranteed in the names of the guarantor/s and borrower/s, limiting the guarantors liability while providing security for the lender, meaning that lenders mortgage insurance is not necessary. This is a very popular way of first home buyers entering the property market, the finance broker says. It works well when borrowers dont have a substantial deposit, but their parents own their own home. Its a great option as long as the parents are comfortable with their childs ability to pay back the loan. To find a solution that will help you own your own home sooner, speak to an Abundance finance broker.
02.01.2022 CAN I BORROW A LOAN FROM VACANT LAND? Whether you are buying land for an immediate build, as an investment or for a ‘one day I will build and live here’ dream, a vacant-land purchase can be financed by a range of mortgages. If you are planning to build immediately, or at least fairly soon, a construction loan might be the best option. Most lenders demand that building on a construction loan must start within a specified time, usually between one and three years, depending on ...which lender you use and whether the property will be owner-occupied or investment. This mortgage type allows you to draw down segments of the loan amount in stages as they are needed for the land purchase and then for the stages of construction which saves you paying interest on the entire loan amount when you don’t need to be. If you don’t plan to build immediately, and you want the loan for the land without any time pressures, a vacant land loan may be the best option. While regular mortgage types can be used for the purchase of vacant land, most lenders also offer vacant land loans. Most will go up to a 30-year loan term and finance up to 90 per cent of the land’s value, and some go as high as 97 per cent loan-to-valuation ratio (LVR). Lenders’ mortgage insurance (LMI) would still most likely be payable on any LVR higher than 80 or 85 per cent, depending on the lender. The vacant land purchase can be used to increase the equity in your existing home or investment property and, while redraw facilities are usually not available on construction loans, they generally are on land loans. If you have stumbled upon the perfect position for your dream home, future holiday getaway or retirement oasis, but aren’t ready to plan building it yet, the next step is to speak to an expert about the different types of loans that can finance the purchase. Find an Abundance Finance Broker who can help you secure your patch for the future without having to build right away.
02.01.2022 WHY IS MY FINANCE BROKER IS CALLING ME? Wondering why your finance broker is contacting you six months after you’ve settled on your property? The simple answer is that a finance broker is with you for life. You’ve scored the home of your dreams with the help of your finance broker and you’ve just popped the bubbly to celebrate. Congratulations!... When the bottle’s empty and you’ve settled in to your new home, you’ll notice your finance broker is still in your life, and you might wonder why after all, they got you the loan and earned their commission. Why would they still care how you are going? They know it’s a good idea to keep in touch every six to 12 months. After all, you should be reviewing your current loan every year and your finance broker can let you know how you’re tracking along. Building a long-term relationship with your finance broker is a good idea as he or she will know the ins and outs of your circumstances and what you want for your future. Your finance broker will also stay on top of your account and, with expert industry knowledge, keep his or her ear to the ground for any new products or better interest rates that would benefit you. As well as expecting to hear from your finance broker every six to 12 months, there are a few times you should contact them. This is because if your life circumstances change, it may impact your mortgage. For example, you may be welcoming a baby into your home, you may receive a higher salary, your income may be temporarily reduced or you may decide to get married. Otherwise, you may want to refinance to a better a deal or consolidate your debts. You may also want to access the equity that you have accumulated in your home for a renovation, an investment or a holiday, all of which your finance broker can help you with. Even the most seasoned of investors benefit from staying in touch with their adviser, who can help them maximize returns later down the track. And if you decide to invest in property for the first time, your finance broker can help look for investment loan options to get you started. Talk to your Abundance finance broker who will be on your side long after the ink dries on your loan application.
01.01.2022 WHAT ARE THE STEPS FOR ME TO BUY AN INVESTMENT PROPERTY? Step 1: Speak to an Abundance Finance Broker When considering an investment property, your first port of call should be your finance broker. An Abundance Finance Broker can help you achieve your investment property goals. They will review your assets and liabilities to determine how much you can borrow, which will, in turn, give you a general idea of your target price range, so you can narrow your property search with...in your purchase budget. Step 2: Budgeting Just like buying your first home, when purchasing an investment property, its essential to budget. If youre unsure of the best way to budget for an investment property, speak with your Abundance Finance Broker, they can help you to get on the right path. Step 3: Important conversations Your Abundance Finance Broker will discuss your plans and your circumstances with you to determine what you can afford. Your broker will also provide statutory documentation to initiate the lending process and work out for you what loan products will be appropriate in your circumstances. This is just an abridged guide to help you get started. For more information and further details, speak with your Abundance Mortgage Solutions Finance Broker today.
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