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KAM Lending Services

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25.01.2022 Comparing commercial and residential property investment If you are looking for a sound real estate investment, look beyond the typical two bedroom apartment and consider expanding your portfolio with a commercial property. There are three types of commercial property office, retail and industrial. There are some significant differences between investing in commercial and residential real estate, each with a potential positive or negative impact on your investment. ...Continue reading

24.01.2022 The hazards of applying to multiple lenders It’s natural that when you are researching something as important as a home loan, you should do as much research and comparison shopping as possible. However, if you apply for a mortgage through several lenders at once, your vigilance could backfire. How multiple applications impact your credit score...Continue reading

23.01.2022 HaHa love it ... Like & Share - tomorrow LOL

21.01.2022 A psychologist walked around a room while teaching stress management to an audience. As she raised a glass of water, everyone expected they'd be asked the "half empty or half full" question. Instead, with a smile on her face, she inquired: "How heavy is this glass of water?" Answers called out ranged from 8 oz. to 20 oz. She replied, "The absolute weight doesn't matter. It depends on how long I hold it. If I hold it for a minute, it's not a problem. If I hold it for an hour, ...I'll have an ache in my arm. If I hold it for a day, my arm will feel numb and paralyzed. In each case, the weight of the glass doesn't change, but the longer I hold it, the heavier it becomes." She continued, "The stresses and worries in life are like that glass of water. Think about them for a while and nothing happens. Think about them a bit longer and they begin to hurt. And if you think about them all day long, you will feel paralyzed incapable of doing anything." Remember to put the glass down

19.01.2022 If someone gave you $500 for the weekend, how would you spend it?

18.01.2022 Why you should choose a mortgage broker over a bank For most people looking for a home loan, the choice is simple just head to the nearest bank and see what is available. On the surface, this seems like convenient and straightforward option, so why look for a mortgage broker when the bank is right there on the main street? Here are three things a mortgage broker will offer you that your bank won’t: ... 1. Choice When you visit your bank manager to talk about a bank loan, the manager is going to offer you their latest products. The manager isn’t going to tell you that a rival bank has an offer more closely streamlined to your circumstances. And a year down the track, the manager won’t reward your loyalty by suggesting a new option tailored to your current circumstances. However, your mortgage broker has access to products from countless banks and lenders, so they will find the one that is most suited to your requirements. When your circumstances change, as you pay off your loan, your broker can suggest a different package. 2. Specialized assistance Bank employees are in the business of promoting the bank’s services which includes securing your loan. Every lender has their own method for approving or declining a bank loan, and you can waste a great deal of time trying to provide the correct application. Your broker already has an inside knowledge of how each bank assesses an application, so you have a better chance of being approved first time around. Your broker can also negotiate with the bank for policy exceptions to tailor the package to your individual specifications. You can also choose a broker who specializes in your particular loan requirements. For example, if you are purchasing a property investment, you will need a broker who understands all the financial issues of that type of loan. 3. Administrative support The mortgage broker will manage all the paperwork on your behalf and follow up with the lender, keeping you updated on the progress of the application. This saves you time and a great deal of stress, while providing you with one point of contact throughout the business of securing the loan. Ultimately, your mortgage broker is saving you both time and money by simplifying the loan application process and ensuring that you find the loan package most suited to the size of your deposit and your ability to make repayments. Contact us today if you want personalized advice about how to complete the loan application process and find the right loan package for your needs.

18.01.2022 What’s the best time to purchase a second property? You are established in your home and ready to dabble in some investments, yet you are a little daunted by the responsibility of owning two properties. How do you know when conditions are right for you to purchase a second property? If you are like most one-property owners, you might visualize a few obstacles preventing you from purchasing a second property. So let’s look at some of these obstacles and see if there is a way ...around them. Don’t let market conditions dictate your decision Many buyers find themselves in limbo waiting until interest rates and housing prices are just right. While this is a positive opportunity to continue saving and build equity in your existing property, it can also be counter-productive if the ideal conditions never eventuate. Property investment is about long term capital growth, and you can only start that growth process once you make the purchase. An alternative to paying off existing property Property owners can also be inhibited from buying a second property because they are focused on paying off their existing home first. However, if you are looking at your property portfolio from the investment perspective, it is worth calculating your options here, as a second property can considerably increase your overall equity. While paying off your first home first may seem like the more secure option, investing that money into a second property can be more profitable, thereby increasing your financial security. Your own financial situation Ultimately, the best time to purchase your next property is when you are financially capable of managing a second mortgage. Ideally, you should have at least a 10% deposit available (plus closing costs), through cash or equity or a combination of both, with additional capital to cover any rise in interest rates, emergency maintenance or loss of income in between tenants. Talk to your mortgage broker to assess your options, so you know how to make best use of your equity, what sort of loan you can apply for, and how much the repayments should be to fit your budget and achieve your investment goals. A property with profit potential Besides capital, the other factor that signals the best time to buy is when you find a property within your budget with high and safe returns. Look for a property with great rental potential for its area, so you can be confident of a regular rental income. Property investment is never an impulsive decision it will take intensive research and budget calculation to find the property that covers all your bases. When you find that property and have the capital to cover your investment expenses, then you have narrowed down the right time to purchase your second property. Contact us today if you need advice or assistance in expanding your property portfolio.

12.01.2022 Looking to get approved for a home loan? But ... Started a new job? Short term casual employment? Commission Income? Bonus income?... No problem... we know which lenders will approve you! Message me now to give you a professional take on your situation.

06.01.2022 Spend 10 minutes on the phone with me to see if you could save $250 or more per month OFF your home loan repayments. Private message me now for a free loan comparison!

05.01.2022 Pros and cons of Guarantor Home Loans As it becomes more and more difficult to break into the housing market, many families are considering the option of a guarantor home loan generally used when parents provide their house as guarantee for a child’s loan. Basically, if you haven’t succeeded in saving enough for a deposit, another property can be used as equity in order to secure the loan. This is a serious financial step and not one to be taken lightly, so let’s look at t...he pros and cons of making this decision for your family. The pros Enter the property market sooner. If you are impatient to be in your own home, or if you are confident that your financial situation will become healthier further down the line, you only need a smaller deposit to have your loan approved. Avoid Lender’s Mortgage Insurance If your deposit is less than the 20% threshold, you are usually liable for lender’s mortgage insurance as risk protection for your lender. However, when you have a guaranteed loan, the additional cost of this insurance could be reduced or waived. Access to lower interest rates The security of the guarantee will give you greater flexibility and choice when you are applying for a loan. With a smaller deposit, you could only secure a loan with high interest, making it even more difficult to make any progress on repayments. However, some lenders will not approve interest only repayments for a guaranteed loan, as you need to pay off the principal to remove the guarantee. A temporary measure Once you have repaid a certain amount, you will have enough equity to remove the guarantee so your guarantor is no longer liable for your loan. The cons High risk to the guarantor. There is one primary con to the guarantee home loan. If you default on your repayments, your guarantor is liable for the portion of the loan they have guaranteed. This means their own home is at risk. Your mortgage broker can help you calculate your repayments in advance, so you can be confident that you will be able to stay on top of the loan. You can also take the precaution of only using the guarantor for a portion of the loan, so you can free your guarantor from responsibility as soon as that portion is repaid. A guaranteed loan can be a great way to help a younger family member embark on the journey towards home ownership. However there are significant risks involved, so this option should not be undertaken lightly, and you should always seek independent financial advice. If you would like to know more about whether a guaranteed loan is the right option for your family, contact us today for a free consultation.

04.01.2022 Benefits of a mortgage offset account An offset account is a bank account linked to your home loan. Rather than accumulating interest within the account, the money in the offset account is offset daily against your mortgage, reducing the interest payable on your mortgage. For example, if you have $20,000 in your offset account and a mortgage of $400,000, you will only be charged interest on $380,000 rather than the full $400,000. This can drastically reduce the length of you...r mortgage and the amount you need to pay in the long term. Tax free interest As you are not earning compound interest from the money in the offset account, you are not liable to pay tax on that money. Instead you are increasing the equity in your property. Flexibility As the mortgage account is like any other transaction account, you can deposit and withdraw funds such as your salary without incurring access fees. As the offset amount is calculated daily, you can keep a lump sum in the account for emergencies while reducing interest on your loan. However, some lenders do place restrictions such as minimum transaction amounts and withdrawal fees which could end up costing more than the interest you save. Is the offset account for you? The people who benefit most from offset accounts are those who can keep a significant sum of money in an accessible account over the long term. If you are instinctively a saver, an offset account is preferable to having to pay tax on interest, as you are making significant gains through equity. It also gives you a flexible alternative to paying extra money directly into the mortgage, as you can still access the funds quickly and without penalty in case of emergency. Even having your salary deposited into your offset account ensures that for one day at least you will reduce the interest payable on your mortgage for that day. However, if you are only keeping a small minimum balance in the offset account, the interest savings will not be so significant. Talk to your mortgage broker or financial advisor about whether an offset account would be suited to your current circumstances. And before opening an offset account, make sure you are fully aware of any fees or conditions that may have a negative impact on the long term benefits. If you would like more information about how an offset account could work for you, contact us today for a personal appraisal.