Bonny Tong Mortgage Services in Langford | Mortgage brokers
Bonny Tong Mortgage Services in Langford
Phone: +61 414 888 910
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25.01.2022 Are you ready to purchase a new car but dont want to get hit with high interest rates from expensive car dealerships? Our team can help you secure fast, low-rate car finance to get you on the road. Our partners also offer conditional approval for up to 60 days, giving you time to shop around and find your dream car.
25.01.2022 What you need to know about the most important part of your home loan: Are you an expert on all lending related topics? Thats okay - most people arent. If youre still trying to understand the truth about interest rates, youre not alone. Here are a few answers to the questions you were too embarrassed to ask. How are interest rates determined?... The Reserve Bank of Australia (RBA) sets the official interest rate or cash rate which takes into account a whole list of factors about how the economy is performing at that point in time. The RBA meets once a month to review the inflation rate, unemployment figures, CPI, PPI and retail sales, and from that information they decide whether to increase, decrease or leave on hold the official cash rate. The cash rate is the interest rate that the banks and lenders will pay to the reserve bank. If this increases, your lender will usually pass the cost onto you - the borrower. If the cash rate decreases - the reserve bank intends that the savings should also be passed on by your lender - but this isnt always the case. By moving the interest rates up and down, the RBA tries to keep the Australian economy in check, by either slowing things down to keep the cost of living under control, or speeding up spending to help boost growth in certain areas. What are the different types of interest rates? The two main types of interest rates are Variable and Fixed. Variable rates are usually a bit lower, and you pay the best going rate at the time. If the cash rate increases, your lender will increase your variable interest rate. But if the cash rate decreases, your repayments will usually go down. Fixed interest rates are locked in for a period of time -usually just a couple of years - so that you know exactly how much you will need to budget for. This can be helpful for borrowers on a strict budget who cant afford a lot of interest rate rises in the short term. However you will usually pay a higher interest rate overall if you choose this option. Which interest rate is best for me? The decision of whether to choose a variable or fixed interest rate should be made after carefully considering your own personal needs and commitments. A mortgage broker should be able to help you weigh up the pros and cons to work out the best option.
24.01.2022 Summer is almost here so it's the perfect time to give your finances a spring clean. Whether you're looking to consolidate credit card debt, renovate your home or purchase your new car, our team can help give your finances a spring clean. Our partners offer a fast, simple, online application process and access to funds typically within 48 hours. Dont delay, get in touch today!
22.01.2022 How to buy a property with a friend (and remain friends)! How would you like to double your deposit and double your income to buy your first property? Sounds pretty good doesnt it? Thats the reason why many young homebuyers are now working together with a partner, friend or relative to break into the property market. Although there are some excellent benefits to entering a property partnership, there are some pretty nasty horror stories out there too - so you need to make... sure you protect yourself against the worst. Make sure you have similar goals for you property purchase. Do you both agree on how long you would like to keep the property for? Do you want to rent it out, or will you be living there together? Make sure everyone is on the same page before you enter into any contracts. Buy with someone who is at a similar stage in life. If you buy with a family member who has a baby on the way, you might be asking for trouble. Likewise, buying with a sibling who is too young to appreciate the importance of keeping up financial commitments could be just as much of a recipe for disaster. Take a moment to check your financial compatibility. You will be responsible for the loan if the other party becomes unable to pay, so take the time to have some open discussions about money, and make sure you are both equally committed to paying things on time and keeping track of the bills. Decide if you want to be housemates. If you plan to live together in the home, make sure you both agree about things that could cause arguments such as having pets in the house, allowing partners to sleep over, housework and other potentially touchy subjects. Get Legal Advice. Find out about your options legally if something was to go wrong, and decide whether you want to be Joint Tenants, or Tenants in Common. This might depend on whether you will pay an equal share of the deposit and loan repayments. Create a formal agreement. Get a formal agreement drawn up that covers as many issues as you can think of. Hopefully you wont have any problems, but it might be helpful if you already agree on the solution ahead of time. Property partnerships can turn into nasty legal battles when parties dont agree on important issues, such as whether or not to sell the property. If you can thrash out some of these issues now you will save yourself a lot of worry in the future. Keep records of spending. Make sure you keep it even, and try to keep records of who paid for what, just in case you have problems down the track. Hopefully your property partnership will be a very positive experience, and if you follow these steps you should be well on your way to being a great team.
22.01.2022 Buying and selling at the same time - discover the Big Question that could make or break you. Are you nearly ready to upgrade your home? Its often a natural progression - we come to a point where the house is just too small to fit everyone comfortably. Maybe its got to the stage where you really need a home office. ...Continue reading
20.01.2022 Six Steps to becoming mortgage-free - Step 4: Offsets and Redraws Would you like to cut your mortgage by years and pay less? What if you could get your mortgage all wrapped up in record time, and spend more time doing the things you love?... Well, there are six steps you can take now, which will make a real difference to the time it takes to pay off your loan. You could be mortgage-free sooner than you think. In the past weeks, we looked at Step 1: choosing the best loan, Step 2: changing your repayment frequency, and Step 3: Pay more to pay early. Today, find out how offset accounts and redraw facilities can help you move quickly towards losing that mortgage forever. Step 4: Offsets and Redraws Do you have a savings account that you use to put money away for a rainy day? You might be surprised to learn that this can save you money on your home loan - even if you keep the money in savings. This is commonly referred to as an offset account. Many lenders offer a 100% offset account which, when linked with your mortgage, can dramatically reduce the interest that you pay on your loan. The reason for this, is that the savings 'offset' what you owe, and you're only charged interest on your loan amount - minus your savings. This can have a significant impact on your loan in the long term. For example, if you have a loan of $400k, and keep $30k in an offset account, you could save over $150k in interest over the life of your loan. Another handy mortgage feature to look out for is a redraw facility. This allows you to make extra repayments on your loan whenever you want, but gives you the flexibility of taking that additional money back in the future if your plans change. By taking advantage of offset accounts and redraw facilities, you can take control of your financial goals today, and pay your loan off sooner. Want to escape your mortgage as soon as possible? Stay tuned for Step 5: Don't take candy from strangers.
20.01.2022 Introducing 5 great reasons to invest in property today: Do you sometimes listen to those seasoned property investors and wonder how they got started? Its quite simple actually - they probably started with just one investment property. ... Anyone can realise the dream of achieving your financial goals through property investment. If youre not sure why you would want to get involved, here are the five best reasons: 1. Financial Independence Now, more than ever, its important to make sure you have steps in place if you want to live comfortably in your retirement. The retirement age seems to be increasing, and people are no longer able to rely on the aged pension as a sole source of income. If you start now you can build a property investment portfolio that will provide you with financial independence - whatever that means to you. For some people that means one investment property that provides a rental return. For others, it means building a veritable monopoly of investment properties in an apparent bid to conquer the universe. 2. Take control of your own investments The great thing about investing in property is that youre completely in control of what you purchase, and you can take steps to ensure that you give yourself the best chance of achieving excellent capital growth or rental return figures. The problem with investing in shares and superannuation is that you arent able to control fluctuations in the market - your role is very passive. 3. Grow your portfolio as your equity increases Once you start investing in property, its sometimes difficult to stop. One investment starts to grow which allows you to purchase another, and before you know it you have a nice little collection of properties making money for you. 4. Capital Growth If you choose wisely, you should be able to achieve strong capital growth on your investment properties. The key is to choose the right type of property in the right area. This might not be an area where you would choose to live - it just needs to be an area with lots of potential for growth. 5. Rental Income If you hope to achieve a good rental income from your investment properties, you should purchase carefully, and keep your ideal tenant in mind. If you like the idea of renting to students, make sure you look in areas near a university or very near to public transport. If you would prefer to rent to a family, schools, shopping centres and parks might be more important. But decide whats most important first: capital growth or rental return. You might not always get a great rental return in an area that has a high level of growth.
20.01.2022 When buying a home doing things in a certain order can make it a lot less stressful. I hope my one-page Step by Step Guide to Buying a Home has some tips that may help when buying your next home. https://www.mortgageaustralia.com.au//astepbystepguidetobu
19.01.2022 We all know that interest rates are cyclical and that when rates go down they will eventually go up. As a result, lenders have been assessing loan applications on the ability of borrowers to make repayments at interest rates approximately 2% higher than those currently available. While lenders have been assessing your ability to make repayments at a higher interest rate, what is the reality of the fi nancial impact of your regular loan repayments?... To make sure you are ready, click here to read my "What goes down, must come up" article. https://www.mortgageaustralia.com.au//whatgoesdownmustgoup
19.01.2022 A reverse mortgage definitely is not for everyone, and you certainly need to be aware of the risks. But in the right circumstances, it can be a good way to boost your income in retirement. A reverse mortgage is for people over 60 and allows you to borrow money using the equity in your home as security. The loan can be taken as a lump sum, a regular income stream, a line of credit or a combination of these options.... While no income is required to qualify, credit providers are required by law to lend you money responsibly so not everyone will be able to obtain this type of loan. Interest is charged like any other loan, except you dont have to make repayments while you live in your home - the interest compounds over time and is added to your loan balance. You remain the owner of your house and can stay in it for as long as you want. You must repay the loan in full (including interest and fees) when you sell your home or die or, in most cases, if you move into aged care. Some of the risks: - Interest rates are generally higher than average home loans - The debt can rise quickly as the interest compounds over the term of the loan - this is the effect of compound interest and is something you need to be aware of before making any decisions - The loan may affect your pension eligibility - You may not have enough money left for aged care or other future needs - If you are the sole owner of the property and someone lives with you, that person may not be able to stay when you die (in some circumstances) - If you fix your interest rate then the costs to break your agreement can be very high On 18 September 2012, the Government introduced statutory negative equity protection on all new reverse mortgage contracts. This means you cannot end up owing the lender more than your home is worth (the market value or equity). To find out more, have a look at the this Government webpage which explains things in more detail: https://www.moneysmart.gov.au//home-equi/reverse-mortgages https://www.moneysmart.gov.au//home-equi/reverse-mortgages
19.01.2022 For the more adventurous - here is a guide to investing in Commercial Property. When mum and dad investors consider property, most look no further than the residential market. While homes and apartments may be seen as simpler and safer options, many investors are prepared to defy tradition and set their sights on the commercial sector....Continue reading
19.01.2022 Did you hear about this great win for home buyers? Australian home owners scored a win on July 1 2011 when lenders were banned from charging exit fees on home loans, making it more enticing for borrowers to shop around for a better deal. Exit fees were generally charged for the first four or five years of a mortgage to discourage borrowers from switching to a competitor before the lender had made a profit on the loan. Unable to now charge exit fees on variable loans, many len...ders are making sure they cover their costs upfront with higher set-up fees. If you are thinking of switching, you should make sure you get all the facts and compare like with like so what you gain in the short term isnt lost in the long run. Take into account loan establishment fees, ongoing account fees, the cost of any property valuations required by your new lender and settlement fees when doing your sums on how much you will be saving by switching. Exit fees also shouldnt be confused with break fees on fixed rate loans. Lenders can and do still charge a fairly hefty fee if you exit a loan during a fixed term. Break fees on fixed rate loans are usually based on: the interest rate you locked in, compared to the current market interest rate; the length of time remaining on your fixed-rate term; and your original loan amount. They can run into thousands of dollars, and remain a formidable deterrent to fixed rate customers thinking of a switch. One of the best ways to get a helicopter view of what it will cost you to switch and what you stand to gain is to talk to your local Mortgage Broker. That way you can be sure if you close the door on your current loan, you are stepping forward financially.
18.01.2022 Don't kick yourself later - ask these questions today and avoid loan confusion. There's nothing worse than walking out of an important meeting, only to realise that you forgot to ask some important questions. One of the most important meetings you will have when you enter the property market is your initial meeting with a mortgage broker.... In order to get the most value out of your appointment, and improve your chances of being approved for a loan, you need to come along prepared to answer a host of questions about your finances and your living situation. But don't forget to ask some questions of your own. After all, the goal is to find the right loan for you, which won't happen if you don't speak up. When meeting with your mortgage broker, remember to ask: Which loan is right for my situation? There are a range of loans available but your mortgage broker should be able to help you decide which ones best fit your lifestyle. What is my borrowing power? This is usually based on your income and financial commitments, and it can vary greatly from one lender to another. What percentage of the property can I borrow? It's important to know how much you need to put down as a deposit, and also whether you need to pay other upfront costs, or whether they can be included in the loan amount. Will I have to take out LMI? Lenders Mortgage Insurance covers the lender in case you become unable to make your repayments, and there is a shortfall when the property is sold. Some lenders require borrowers to pay this amount upfront. Which loan offers the best rate? Some loans might offer a good introductory rate, but it's important to look at the ongoing rate once the honeymoon period is over. What flexibility does the loan offer? Can I make changes down the track? What if I want to make a lump sum payment in the future? Is the rate fixed or variable? Variable rates are usually lower, but keep in mind that they can change frequently. Fixed rates are a little higher but they provide some certainty for those on a strict budget. However fixed rate loans are usually a lot less flexible than variable rate loans. What will my repayments be? It's important to look at your budget and make sure you're not over-committing yourself. How much is the loan establishment fee? This is another cost that is often payable upfront, so you will need to ensure that you have funds available at settlement if this is the case. Are there any ongoing fees associated with the loan? Monthly account keeping fees can vary between lenders so it's important to make sure you compare your options. Are there any conditions to be aware of such as discharge costs, fees to change the loan? Not asking this question could be very costly if you're planning to refinance down the track, or make a significant lump sum payment in a few months.
17.01.2022 Introducing the new home building methods that can save you a lot of time and money. In the past, prefabricated houses would connote images of tackiness and shipping container living, but prefab housing is now enjoying an avant-garde revival. Today's prefab houses consist of high end materials, follow strict green building practices and are designed by leading architects. Often they have substantially better thermal ratings than brick homes, meaning they actually cost a lot l...ess to heat and cool. Some new builders even start with a traditionally built lower floor, then build a prefabricated second floor, being less expensive and much faster than building a standard two-storey home. To find out more, download my short introductory PDF article to this style of home that is growing in popularity - Absolutely Prefabulous. https://www.mortgageaustralia.com.au//absolutelyprefabulou
17.01.2022 By world standards, Australia is a wealthy nation. We have a strong economy with high employment and a far rosier outlook than most developed countries. And yet almost half (47 per cent) of us are anxious about our finances, according to research by the Boston Consulting Group. Finance guru Paul Clitheroe reckons most Australians want to improve their financial situation but dont know where to start. Financial literacy is not about getting rich. Its about understanding and...Continue reading
17.01.2022 If you want more space, renovate right! Its been more than 25 years since Tom Hanks and Shelley Long showed us the calamitous side of renovating gone wrong in ...the comedy movie, The Money Pit, but the warnings ring loud and clear today. With a sluggish property market, many home owners are opting to renovate rather than relocate. Before you hit the hardware store and strap on the tool belt, here are my top tips to renovate your way to reward, instead of ruin. 1. Renovate or rejuvenate? You dont have to tear down walls or add a new storey to add value to your home. If you need extra space, you will probably have to renovate. But there are plenty of ways to add value without making drastic structural changes: paint a new colour scheme inside and out; clean up and replant an overgrown garden; replace floor coverings or sand and revarnish existing timber floors; spruce up old windows with some modern shutters; or create some extra storage with built-in wardrobes. 2. Know what you can and cant do yourself. Not the DIY type? Face defeat early and call in experts to tackle the job. It may be difficult to part with money for something you feel you can do yourself, but if you botch the job, you will pay more in the long run. There are some jobs even skilled DIYers should not tackle for safety reasons, including electrical work, asbestos removal and roofing. 3. Target your market. If you are buying a property specifically to renovate for profit or tarting up your existing home for sale, consider the likely buyers for the neighbourhood. Remember youre not renovating for your own lifestyle and tastes, so keep colour palettes neutral and avoid fittings that are overly artistic or unusual. 4. Take a peek at the competition. Visit some of the fully renovated houses in your area that are up for sale to see what the market is prepared to pay and what buyers are looking for. It will give you a good handle on which features help differentiate one property over another and current values. 5. Dont overcapitalise. It remains the golden rule of renovating and is particularly poignant in the current market. Cost every aspect of your project and be realistic about the value it will add, especially if you are planning on staying in the property for only a couple of years or less. If you plan on living there for more than five years, you have a little more leeway to recoup the value of your renovation at sale time. However, its still wise to keep at least a 20% margin between what you spend and the current value in case you have to sell sooner than expected. 6. Dont start what you cant finish. If you dont have the money to undertake your project, dont start. Some renovators kick off their project with an aim to saving up along the way. If your savings fall short you may be left with an unsightly, unfinished project, which will curtail your capacity to sell if needed. Chances are you will also lose interest in taking on future projects, so make sure you have all the money you need upfront.
17.01.2022 How to fix a broken Credit Record. Do you know what a lender will find when they look at your credit history report? For many borrowers, its not until they apply for a loan that they even lay eyes on this document for the first time. Unfortunately, this is also when many people find out that their credit history is less than perfect.... There are lots of little mistakes you can easily stumble into when youre not focussing on maintaining a healthy credit record. Dont despair though - there are also ways to fix them, as long as youre willing to be a little proactive. Multiple Applications Some people cast a very wide net when applying for a home loan. They complete applications with a variety of lenders in the hope that one of them will be approved. This tactic might have been a great idea when you were applying to universities, but its the worst possible way to apply for a home loan. Unfortunately when you apply for a loan and you arent successful for any reason, this is noted on your credit record. There may be logical reasons for your application being declined - sometimes its as simple as not being a customer of that particular bank. The problem is, when you have a few of these on your record it can start to appear that you arent a very good risk for a lender - since so many other lenders have already said no. The best way around this is to engage a mortgage broker, who will investigate on your behalf before lodging and application with the most appropriate lender for your personal circumstances. Digging your heels in Lets face it - there are some companies out there who are just shocking to deal with. If you spend a lot of time on the phone arguing over incorrect bills, youre not alone. After lots of phone calls, it might seem like a good idea to ignore that incorrect phone bill and hope that it goes away. The problem with that approach - the bill might be listed as a default on your permanent record. For your own best interests, its probably better to pay the bill, and then dispute it afterwards. Not keeping on top of your bills If you have moved house a couple of times, or if you dont have the best filing systems in place, its possible that you might have misplaced or neglected to pay the occasional bill. Sometimes people have defaults listed on their credit history report due to moving house, and not receiving any bills or reminders relating to the debt. Make sure that you have proper mail redirections in place when you move, and make a list of companies to update your details with as soon as possible. If you have these sorts of defaults on your credit history report, you might be able to have them removed by communicating directly with the company who reported the default. Failing this, you might be able to lodge a dispute through a credit reporting body such as Veda.
16.01.2022 Want to go green? Contact me for a loan that pays itself off with your power bill savings.
16.01.2022 Your Perfect Match - How to find a loan that keeps you warm at night. Do you find that youre usually attracted to the same type of person? We all have a mental image of our perfect mate - some people are even lucky enough to wake up next to that person each day. Just as the dating market can be tricky to navigate, its easy to miss the signs and find yourself attracted to the wrong home loan.... To help you find a loan that loves you unconditionally, here is a quick run-down of the different types available. Basic Loan The basic home loan usually doesnt have a lot of fees. What you see is what you get. Usually you get a low interest rate, but you dont get much else. If you want some features, and flexibility this might not be the match made in heaven. Introductory Rate loan Otherwise known as a Honeymoon loan this one is a bit like some new relationships. You get a really good deal at the beginning, and everyone is happy. After a year or two the honeymoon is over, and you find out what the loan will really cost you. A good option if you want to keep your repayments down in the beginning - but make sure you investigate the interest rate that you will be charged after the introductory period. Standard Variable rate loan For those who want to be able to pick and choose their features, the standard variable rate loan could be your perfect mate. You generally get a low interest rate, but the flexibility to select some options that suit your needs. Low-doc Loan A low-doc loan is a good alternative for Self-Employed borrowers who are often unlucky in love when it comes to finding their ideal mortgage. Low-doc loans allow you to use different methods of proving your income. The rules are usually a little less restrictive - but you will pay a much higher rate. On top of this - most lenders require self-employed borrowers to contribute a 20% deposit, and cover all upfront costs such as Stamp Duty and Lenders Mortgage Insurance (LMI). This is a good option for people who dont have any other options. 100% home loan Also known as a No-deposit loan, this one allows you to borrow 100% of the purchase price. Dont be fooled though - this is not a free ride. Most lender still require you to save a 3% deposit to cover the LMI, and youll also need to make sure that you have enough left over to cover stamp duty, moving costs and conveyancing - and any other associated costs. Sometimes these loans are available, sometimes they are not, it depends on the current lending environment - but it never hurts to ask.
15.01.2022 Here are some Super Savings: In March this year Australian workers had more than $1.8 trillion stored away in superannuation funds, in part thanks to a system that generally requires employers to pay a contribution on employees behalf. From July 1, this required employer contribution jumped .25% to 9.5%.* For many wage and salary earners who benefit from these compulsory super contributions, super is often something they think about once a year when their statement arrives i...Continue reading
14.01.2022 How to save for your FIrst Home - without moving back to Mum and Dad: Are you trying to save up for your first home? There's so much to think about - not just an enormous deposit, but stamp duties, moving costs, conveyancing fees and loan costs all add up to quite a number. Saving such a large amount can be a tough slog. You try and put a bit away each week but unexpected things tend to pop up, and it can feel like you're not getting anywhere at all. But there are a few thing...s you can do to speed up your savings journey. 1. Cut your costs It's time to sit down with the calculator and work out just how much you spend - on what. It's all too easy these days to 'tap and go' when you make purchases, without really stopping to notice the cost. For example, you might be horrified to learn that you currently spend $900 per year on energy drinks. And that's not including your morning coffee. Wait until you're in the right mood - and then be brutal. It's time to work out where you can trim the fat. 2. Kill the credit cards Credit cards are expensive to keep - and they have a way of blossoming if you don't keep paying them off in full. If you have a credit card debt, get rid of it. Sell your old textbooks, get a Saturday job, do whatever it takes because this one isn't doing you any favours. Not only will a credit card accrue interest, your savings goals will be undermined if you have to keep making repayments on credit cards all the time. 3. Make a budget Write down what you earn. Then list all of your 'non-negotiable' expenses - like rent, groceries, bills, train fares etc. Deduct the non-negotiable expenses, and what you have left is your disposable income. Rather than disposing of it - try to save as much as possible. Make a plan for how much you can afford save each month. It might be a bit of a stretch some months if you receive a big bill - so try keeping a separate account where you save a small amount every week. That way, if you receive your car registration you can pay it without compromising on your savings that month. 4. Leave some room to breathe We all need a break occasionally, and it's important that your budget does include some room to breathe. You might need to buy new shoes for work, or a present for your sister's birthday. Don't make it so tight that you can't even go to the movies. Leave a bit of slack for those times when you really need to live a little. That way, you're more likely to reach your savings goal.
14.01.2022 Have you spotted a property bargain recently? If you think there may be a few property bargains just waiting for you to check them out, why dont you ask me to confirm your borrowing capacity before you go and have a look around? There have been lots of changes in home loans too, so a bit of homework could be worthwhile.... It doesnt cost anything to find out and usually only takes a few minutes. The least I can do is point you in the right direction and the privacy act ensures our conversation is entirely confidential. Some of my more astute investors take the opportunity during these times to purchase more investment properties while the market conditions are good. If youd like to know more about this, contact me about using your equity to purchase an investment property. An email or a phone call is all it takes.
13.01.2022 Switching home loans could help pay down your mortgage sooner, providing you are refinancing for the right reasons and understand whats involved. Heres our guide to refinancing to help you make the right move when the time comes. Know the costs: Paying 0.5 per cent less per annum on a $250,000 principal-and-interest mortgage could save you around $23,000 over the life of a 25-year loan. Thats a sizeable chunk of change back in your pocket over the long term, but there are ...Continue reading
13.01.2022 Dont kick yourself later - ask these questions today and avoid loan confusion. Theres nothing worse than walking out of an important meeting, only to realise that you forgot to ask some important questions. One of the most important meetings you will have when you enter the property market is your initial meeting with a mortgage broker.... In order to get the most value out of your appointment, and improve your chances of being approved for a loan, you need to come along prepared to answer a host of questions about your finances and your living situation. But dont forget to ask some questions of your own. After all, the goal is to find the right loan for you, which wont happen if you dont speak up. When meeting with your mortgage broker, remember to ask: Which loan is right for my situation? There are a range of loans available but your mortgage broker should be able to help you decide which ones best fit your lifestyle. What is my borrowing power? This is usually based on your income and financial commitments, and it can vary greatly from one lender to another. What percentage of the property can I borrow? Its important to know how much you need to put down as a deposit, and also whether you need to pay other upfront costs, or whether they can be included in the loan amount. Will I have to take out LMI? Lenders Mortgage Insurance covers the lender in case you become unable to make your repayments, and there is a shortfall when the property is sold. Some lenders require borrowers to pay this amount upfront. Which loan offers the best rate? Some loans might offer a good introductory rate, but its important to look at the ongoing rate once the honeymoon period is over. What flexibility does the loan offer? Can I make changes down the track? What if I want to make a lump sum payment in the future? Is the rate fixed or variable? Variable rates are usually lower, but keep in mind that they can change frequently. Fixed rates are a little higher but they provide some certainty for those on a strict budget. However fixed rate loans are usually a lot less flexible than variable rate loans. What will my repayments be? Its important to look at your budget and make sure youre not over-committing yourself. How much is the loan establishment fee? This is another cost that is often payable upfront, so you will need to ensure that you have funds available at settlement if this is the case. Are there any ongoing fees associated with the loan? Monthly account keeping fees can vary between lenders so its important to make sure you compare your options. Are there any conditions to be aware of such as discharge costs, fees to change the loan? Not asking this question could be very costly if youre planning to refinance down the track, or make a significant lump sum payment in a few months.
13.01.2022 Are you ready to purchase a new car but don't want to get hit with high interest rates from expensive car dealerships? Our team can help you secure fast, low-rate car finance to get you on the road. Our partners also offer conditional approval for up to 60 days, giving you time to shop around and find your dream car.
12.01.2022 Fixed rate loans - Safety Net or Hostage Situation? Do you buy your movie tickets before you leave the house? Do you like to book a table at a restaurant to make sure you dont miss out? There is a certain comfort in knowing whats going to happen, especially when it comes to planning your financial future.... If you worry about the ups and downs of the official cash rate, and the possibility of your home loan repayments increasing without warning, a fixed rate loan could be your new best friend. Fixed interest rates are a kind of insurance policy that protect you against the financial pressure caused by interest rate movements. Depending on your personal situation, you might struggle to meet your repayments if interest rates were to rapidly increase. If you opt for a variable interest rate, you have no control over fluctuations in the market. Ideally, you should have allowed for a few rate rises when deciding how much to borrow. But if you stretched your limit in order to buy your dream property, then fixing your interest rate is a great safety net. Fixed rate loans allow you to be sure about your exact repayment figures for a fixed period of time. This is great for borrowers on a tight budget - because you never have to worry about interest rate fluctuations during the fixed period. The purpose of a fixed rate loan is not to save you money on interest. Generally, these loans will cost you more in interest. Fixed rates are usually higher than variable rates, so the only way this approach will save you money, is if there is a rapid fluctuation in interest rates, and the standard variable rate climbs significantly above your fixed rate. A fixed rate could cost you money if interest rates fall. You will be locked into a higher rate when other people are enjoying a reprieve. You need to decide if youre happy to take this risk and fix your rate for a period of time. The biggest risk of going fixed is the penalties that you will incur if you need to get out of the loan. Many lenders charge enormous discharge fees for borrowers leaving during the fixed interest rate period. Its also very difficult to change your loan during the fixed period, and generally you cant make any lump sum repayments. If you have a variable rate loan, its a great idea to regularly review your needs every few months. You might decide that the time is right to fix your rate, depending on your circumstances, and the fixed interest rates on offer. Beware of sitting on the fence. Many lenders promote the concept of 50/50 fixed and variable rate loans. Some borrowers see this as a risk-free alternative to choosing either fixed or variable rates. Keep in mind - if you choose to fix part of your loan and leave the other part variable, you will still be locked in because of the fixed portion of the loan.
12.01.2022 Should you buy or build your next home? Many buyers struggling to find the right home are going back to the drawing board and building rather than buying an existing home. There are obvious benefits to a brand new home: you can build exactly what you want and enjoy shiny new surrounds, with no wear and tear costs for years to come. But there can be downsides to creating your castle....Continue reading
11.01.2022 Here is why you shouldnt scrimp on loan repayments: With household costs on the rise, many mortgagees are struggling to balance their budgets. Its not surprising more Australians are skipping mortgage payments to help make ends meet. However, missing loan repayments could land you in a bigger hole. Not only will you be up for late fees - ranging from a manageable $9 to a stinging $195 per overdue payment - but you could be adding thousands of dollars of extra interest to yo...ur debt. At worst, a string of missed mortgage payments could see the bank recalling your loan, forcing a fire sale of your home. Even a couple of missed payments could put a red flag on your credit history, which is going to cramp future borrowings. One of the best ways to reduce the risk of mortgage stress is to give yourself a buffer on your budget. In Australia, its recommended borrowers mortgage repayments make up no more than 30% of household income. The problem is many home owners borrow to the edge of the threshold when interest rates are low - as they are now - leaving no room for inevitable rate rises and other increased living costs. Instead, budget for mortgage repayments at a 9% interest rate, a long-term average that accounts for peaks and troughs over the long run. When rates are low, stick the extra funds into your mortgage. You will not only save on interest but will have established a safety net, which you can draw on if needed when rates run high. If you are already feeling the pinch and struggling to make payments, talk to a Mortgage Broker sooner rather than later. A Mortgage Broker can help negotiate with the lender on your behalf and can look into other loan options to ease the squeeze.
11.01.2022 Your Perfect Match - How to find a loan that keeps you warm at night. Do you find that you're usually attracted to the same type of person? We all have a mental image of our perfect mate - some people are even lucky enough to wake up next to that person each day. Just as the dating market can be tricky to navigate, it's easy to miss the signs and find yourself attracted to the wrong home loan.... To help you find a loan that loves you unconditionally, here is a quick run-down of the different types available. Basic Loan The basic home loan usually doesn't have a lot of fees. What you see is what you get. Usually you get a low interest rate, but you don't get much else. If you want some features, and flexibility this might not be the match made in heaven. Introductory Rate loan Otherwise known as a 'Honeymoon loan' this one is a bit like some new relationships. You get a really good deal at the beginning, and everyone is happy. After a year or two the honeymoon is over, and you find out what the loan will really cost you. A good option if you want to keep your repayments down in the beginning - but make sure you investigate the interest rate that you will be charged after the introductory period. Standard Variable rate loan For those who want to be able to pick and choose their features, the standard variable rate loan could be your perfect mate. You generally get a low interest rate, but the flexibility to select some options that suit your needs. Low-doc Loan A low-doc loan is a good alternative for Self-Employed borrowers who are often unlucky in love when it comes to finding their ideal mortgage. Low-doc loans allow you to use different methods of proving your income. The rules are usually a little less restrictive - but you will pay a much higher rate. On top of this - most lenders require self-employed borrowers to contribute a 20% deposit, and cover all upfront costs such as Stamp Duty and Lenders Mortgage Insurance (LMI). This is a good option for people who don't have any other options. 100% home loan Also known as a 'No-deposit' loan, this one allows you to borrow 100% of the purchase price. Don't be fooled though - this is not a free ride. Most lender still require you to save a 3% deposit to cover the LMI, and you'll also need to make sure that you have enough left over to cover stamp duty, moving costs and conveyancing - and any other associated costs. Sometimes these loans are available, sometimes they are not, it depends on the current lending environment - but it never hurts to ask.
10.01.2022 Cure your confusion today - 9 steps to purchasing your first home. Do you start to get a headache when you think about everything involved in getting a home loan? Don't despair. Many other borrowers have felt the same way in the past. ...Continue reading
09.01.2022 If you are planning to start a family - these financial tips will help. Are you managing a mortgage and starting a family? Many a new parent has been caught out realising our once organised calm life is a thing of the past when we bring our bundle of joy home. Its amazing how tiny babies can turn our household upside down.... We quickly learn that we need to be more flexible about when we eat, sleep, go to the shops and even have a shower. It helps to be flexible in your financial life too when the impact of a reduced household income and the expense of a new addition to the family start to become apparent. A little forward planning now can make it easier to focus on whats important later - your family. Here is a guide with some ideas on how you can relieve the financial pressure of starting, or increasing, your family - Can you manage a Mortgage and a Baby? https://www.mortgageaustralia.com.au//amortgageandababy.pdf
09.01.2022 Here is why you shouldn't scrimp on loan repayments: With household costs on the rise, many mortgagees are struggling to balance their budgets. It's not surprising more Australians are skipping mortgage payments to help make ends meet. However, missing loan repayments could land you in a bigger hole. Not only will you be up for late fees - ranging from a manageable $9 to a stinging $195 per overdue payment - but you could be adding thousands of dollars of extra interest to yo...ur debt. At worst, a string of missed mortgage payments could see the bank recalling your loan, forcing a fire sale of your home. Even a couple of missed payments could put a red flag on your credit history, which is going to cramp future borrowings. One of the best ways to reduce the risk of mortgage stress is to give yourself a buffer on your budget. In Australia, it's recommended borrowers' mortgage repayments make up no more than 30% of household income. The problem is many home owners borrow to the edge of the threshold when interest rates are low - as they are now - leaving no room for inevitable rate rises and other increased living costs. Instead, budget for mortgage repayments at a 9% interest rate, a long-term average that accounts for peaks and troughs over the long run. When rates are low, stick the extra funds into your mortgage. You will not only save on interest but will have established a safety net, which you can draw on if needed when rates run high. If you are already feeling the pinch and struggling to make payments, talk to a Mortgage Broker sooner rather than later. A Mortgage Broker can help negotiate with the lender on your behalf and can look into other loan options to ease the squeeze.
09.01.2022 Heres some help with saving for your first home: Crush credit card debt You are working with one hand tied behind your back if trying to save for a home depos...it while carrying credit card debt. Switch to a low-interest credit card and pay off as much as you can afford each month. The quicker you clear your debt, the faster you can put those funds into your deposit. Move home Rent is another way to snuff out savings. While not everyone is in a position to do so, moving back to the family home can be a fast ticket to savings central. The simplest way to work out if a non-bank lender is right for you and your circumstances is to talk to your broker. Brokers act as a one-stop shop, with access to a wide range of lenders, including banks and non-banks, and hundreds of home loan products. From little things: If you require five or more years of savings to build a deposit, consider parking the funds in a term deposit account, where you are offered a higher interest return than a regular savings account in exchange for the use of your money for a set period. Minimum term deposit amounts can start at $1,000. While interest rates are fairly modest, it will take a number of years for your savings to sprout, but its a low risk investment option to consider. As with any investment decision, speak to a financial advisor before making any decisions. Manage expectations: Even the best laid plans can go astray. If you find your circumstances change, the real estate market jumps beyond your reach or life throws a curve ball at your savings, you might need to lower your expectations for your first property. A one-bedroom unit might be more within your budget than a house and garden, or you might have to look at a different location. You may also have to save for much longer than expected. Dont be thwarted. Adjust your plan if needed, but stick with it. Perseverance is often the key to that first home."
08.01.2022 Mortgage traps ahead! - Don't fall in. Do you love a bargain? It can feel like such a victory when you find that special deal on a new TV, or when you save a bundle by doing your Christmas shopping during a toy sale. Unfortunately, this sort of approach to looking for a mortgage can easily land you in hot water. Whilst it always pays to look around for a good deal on a home loan - there's also an old saying: "If it sounds too good to be true, it probably is".... There are a few fatal traps when it comes to choosing the right loan for you. Unfortunately the excitement of buying your first home can be all too distracting, and it's easy to put your foot in it by failing to research your loan options. Irresistible Offers The majority of lenders are very responsible and cautious, and only give out loans to people likely to make their repayments. These lenders will offer the best deals their desired customer - usually someone who earns a good income, has a clean credit history report, and has a decent deposit to contribute. If you know that your circumstances don't make you particularly appealing to a lender, but you're being offered a crazy deal - there might be something amiss. Take some time to read the fine print and make sure that the loan contract doesn't contain any nasty surprises. Remember - there's no such thing as a free lunch! Fixed rates You might be tempted to lock in a low interest rate for a couple of years so that you can have the peace of mind that comes with knowing your repayments. The danger here, though, is that you might be missing out on features that you need, or being charged additional fees. Make sure that you research all aspects of the loan, rather than just focussing on the interest rate. Fees and Charges Loan contracts can be very detailed - packed full of confusing words and legal disclaimers. But one section that you should study with a magnifying glass is the schedule of fees and charges. Do you know whether you can make changes to your repayments? How much will it cost if you default on a repayment? What is the fee associated with ordering a statement ahead of time? And importantly - what establishment fees will you have to pay at settlement? If you don't know this amount, you might not be able to proceed with your purchase and you could lose your deposit. Flexibility and Features It's important to consider what features you need in a loan - do you want to be able to make extra repayments when times are good? Would you like to be able to take that money back again if something doesn't go according to plan? What about if you want to change your repayment frequency? The features of your loan are just as important as the interest rate - and not paying attention could mean that you end up paying a lot more in the long term.
07.01.2022 How to make sure your next home isn't a money pit. The typical home purchaser spends around 90 hours over 6 months browsing the internet, researching websites, visiting real estate agencies and inspecting no less than a dozen properties. However we only spend a little more than one hour inspecting the home we eventually purchase.... Not surprisingly, 55% of us discover 'hidden problems' after the settlement. Please read this article on how to avoid problems before finalising the purchase of your next home - Biggest Investment. https://www.mortgageaustralia.com.au//biggestinvestment.pdf
06.01.2022 If you want more space, renovate right! It's been more than 25 years since Tom Hanks and Shelley Long showed us the calamitous side of renovating gone wrong in ...the comedy movie, The Money Pit, but the warnings ring loud and clear today. With a sluggish property market, many home owners are opting to renovate rather than relocate. Before you hit the hardware store and strap on the tool belt, here are my top tips to renovate your way to reward, instead of ruin. 1. Renovate or rejuvenate? You don't have to tear down walls or add a new storey to add value to your home. If you need extra space, you will probably have to renovate. But there are plenty of ways to add value without making drastic structural changes: paint a new colour scheme inside and out; clean up and replant an overgrown garden; replace floor coverings or sand and revarnish existing timber floors; spruce up old windows with some modern shutters; or create some extra storage with built-in wardrobes. 2. Know what you can and can't do yourself. Not the DIY type? Face defeat early and call in experts to tackle the job. It may be difficult to part with money for something you feel you can do yourself, but if you botch the job, you will pay more in the long run. There are some jobs even skilled DIYers should not tackle for safety reasons, including electrical work, asbestos removal and roofing. 3. Target your market. If you are buying a property specifically to renovate for profit or tarting up your existing home for sale, consider the likely buyers for the neighbourhood. Remember you're not renovating for your own lifestyle and tastes, so keep colour palettes neutral and avoid fittings that are overly artistic or unusual. 4. Take a peek at the competition. Visit some of the fully renovated houses in your area that are up for sale to see what the market is prepared to pay and what buyers are looking for. It will give you a good handle on which features help differentiate one property over another and current values. 5. Don't overcapitalise. It remains the golden rule of renovating and is particularly poignant in the current market. Cost every aspect of your project and be realistic about the value it will add, especially if you are planning on staying in the property for only a couple of years or less. If you plan on living there for more than five years, you have a little more leeway to recoup the value of your renovation at sale time. However, it's still wise to keep at least a 20% margin between what you spend and the current value in case you have to sell sooner than expected. 6. Don't start what you can't finish. If you don't have the money to undertake your project, don't start. Some renovators kick off their project with an aim to saving up along the way. If your savings fall short you may be left with an unsightly, unfinished project, which will curtail your capacity to sell if needed. Chances are you will also lose interest in taking on future projects, so make sure you have all the money you need upfront.
06.01.2022 BUYER BEWARE THE BARGAINS Limited cash flow and equity mean many first-time property investors feel the need to chase down a bargain to enter the market. But, like most things in life, you usually get what you pay for, which in the case of property can mean unrealised returns or even losses. While theres nothing wrong with paying less in the hope of making more, investors need to understand when a cheap property is truly a bargain and when they could be selling (or rath...Continue reading
05.01.2022 Spring has sprung and home buyers are emerging from hibernation. Thats the theory, but the reality is home buyers are on the hunt all year round for the right property at the right price. The economic cycle and how you present your property will have a far greater impact than the weather on how soon it sells and how much it fetches. ...Continue reading
04.01.2022 For many Australians retirement is an opportunity to down-size their homes and simplify their lives. For more than 138,000 retirees*, that means opting for life in a retirement village. Village living offers an appealing lifestyle, especially for those looking for a sense of community and to spend their new-found free time on recreation rather than maintaining a property. But the process of taking up a spot in a retirement complex is very different to buying your own home. Ha...Continue reading
03.01.2022 Six Steps to becoming mortgage-free - Step 6: Is the grass greener on the other side? Do you ever wonder if the grass really is greener on the other side? The question today is: are you getting the best deal on your mortgage? How would you like to make a few small changes that could lead you on the path to becoming mortgage-free and financially fabulous?... Well, there are six simple steps that you can implement today, that will help you knock over that home loan in record time. In the past weeks, we learned how choosing the best possible loan product could make a big difference to your back pocket. How changing the frequency of your repayments could lower your interest. Why it makes sense to pay more off your loan whenever possible, how to make the most of handy features like offset accounts, and redraw facilities, and why refusing lollies from strangers is always a good idea. Step 6: Refinance for a better deal The fierce and ongoing competition between lenders in the home loan market can sometimes play out like a scene from Gladiator. But the clear victor emerging from this never-ending battle is you - if you keep your finger on the pulse. Now more than ever, its vital that you keep assessing your financial needs and look out for opportunities to get a better deal on your loan. Even though you compared your options and secured the best deal a few years ago, that doesnt mean that your current interest rate is the best, or even close. By refinancing with another lender you could reduce your costs, and save time. Many borrowers who refinance are able to save as much as 1% off their interest rate, which could mean paying that loan off several years earlier than planned. If you havent reviewed your options for a while, it pays to speak with your mortgage broker and find out if the grass really could be greener on the other side. It could make all the difference if you want to pay your loan off sooner, and keep more money in your pocket in the process.
03.01.2022 Here's some help with saving for your first home: Crush credit card debt You are working with one hand tied behind your back if trying to save for a home depos...it while carrying credit card debt. Switch to a low-interest credit card and pay off as much as you can afford each month. The quicker you clear your debt, the faster you can put those funds into your deposit. Move home Rent is another way to snuff out savings. While not everyone is in a position to do so, moving back to the family home can be a fast ticket to savings central. The simplest way to work out if a non-bank lender is right for you and your circumstances is to talk to your broker. Brokers act as a one-stop shop, with access to a wide range of lenders, including banks and non-banks, and hundreds of home loan products. From little things: If you require five or more years of savings to build a deposit, consider parking the funds in a term deposit account, where you are offered a higher interest return than a regular savings account in exchange for the use of your money for a set period. Minimum term deposit amounts can start at $1,000. While interest rates are fairly modest, it will take a number of years for your savings to sprout, but it's a low risk investment option to consider. As with any investment decision, speak to a financial advisor before making any decisions. Manage expectations: Even the best laid plans can go astray. If you find your circumstances change, the real estate market jumps beyond your reach or life throws a curve ball at your savings, you might need to lower your expectations for your first property. A one-bedroom unit might be more within your budget than a house and garden, or you might have to look at a different location. You may also have to save for much longer than expected. Don't be thwarted. Adjust your plan if needed, but stick with it. Perseverance is often the key to that first home."
03.01.2022 Would you like to improve the environmental efficiency of your home, save money on your energy bills and increase the value of your property? Our team can help arrange low-rate finance for energy efficient products. Our partners offer a fast, simple process and access to funds typically within 48 hours. Dont delay, get in touch today!
02.01.2022 We have recently helped someone reduce their loan repayments by over $423 per month through refinancing their home loan and other debts. In fact for the clients I see who are struggling with their mortgage and debt repayments, I regularly manage to save them hundreds of dollars per month. In these uncertain times of interest rate changes most mortgage owners are now starting to consider their finance options. ... Perhaps I can help you, like I was able to with many of your nearby residents. If you require: - reduced loan repayments, - consolidation of debt, - funds to renovate, install a pool or purchase a significant item, - finance to purchase another property, - parent equity guarantees to assist your children to purchase a property, or any other finance requirement Please contact me for a free no obligation assessment of your current situation. https://www.mortgageaustralia.com.au
01.01.2022 Did you know that three in 10 mortgages arranged by mortgage brokers are in rural and regional areas, improving access to home lending for rural and regional Australians in locations where there may be few or no bank branches. https://www.afgonline.com.au/broker/keep-competition-alive/ https://youtu.be/zsjxPB6ITRg
01.01.2022 A wise person once said: failing to plan is a plan to fail. As probably the most significant purchase of your life, saving for a home definitely takes prior preparation and planning! - How much can I afford? You may have a dream home in mind but you first need to work out if you can afford it. There are many factors that feed into our decision around what to buy and where - proximity to work and family and our stage of life are just a few - but the single biggest decider is ...nearly always what we can afford. Its really a case of looking at the big picture and working your way back from there. Consider your household income and what you realistically can afford in loan repayments, taking into account all of your expenses. As a guide a mortgage calculator can be a great place to start, but it wont take into account all of your personal circumstances or eligibility for a loan so talk to your local Mortgage Broker to get your plan underway. https://www.moneysmart.gov.au/ - How much do I need for a deposit? Ideally, you should start with a 20% deposit to avoid paying lenders mortgage insurance (LMI). This is a one-off insurance payment charged by lenders to those borrowers who are considered a higher financial risk. Your risk is determined by your loan to value ratio (LVR), which is the amount you wish to borrow divided by the lenders valuation of the property you wish to buy. Lenders generally like to have at least a 20% buffer so if you have to default on the loan, they stand a good chance of recouping the loan amount through the sale of your property.. Although LMI can add several thousand dollars to property purchase costs, many borrowers consider it a worthy investment to help secure a loan with a lower deposit. The critical factor is whether your income can support the higher loan repayments. Ask your broker for an LMI estimate based on your financial situation before deciding how much you need for your deposit. - Saving for a deposit: Working out how much you need for a deposit can be fairly easy compared to actually saving for it. Sacrifices are generally in order!. ?Budget cuts The best place to start is a budget. Review all of your expenses, including day-to-day costs like lunches, coffees and transport, and your bigger bills, such as rent and electricity. Dont forget to also include any annual bills such as car insurance and registration, which can sabotage your savings. Then its times to get a little ruthless and look for ways to cut back on costs. Here are just a few ideas: - Make your lunches. - Dine in, not out, with friends. - Ditch the gym membership and start exercising outdoors. - Make a list for your groceries and stick to it. - Save, dont spend, your tax return and/or salary bonus. https://www.moneysmart.gov.au//calcula/mortgage-calculator
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