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MMC Finance

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25.01.2022 How to choose the best home loan for you Taking out a home loan is a huge financial commitment and it is particularly important to choose a loan that suits your needs, so you can make repayments on your terms without worrying about hidden fees or excessive interest. Yet it can be bewildering to navigate all the different loan options available and pinpoint the loan that is best for you. It is important to keep in mind that lenders are determined to minimize their risk so for... every benefit they offer to make the loan seem enticing, there is always another fact protecting their investment. So you need to look at the loan package as a whole rather than being drawn to one particular feature. Choose the right structure for your circumstances You need to consider your financial needs and your plans for the property as you want the loan’s features to cater to your circumstances. For example, you will require different features and flexibility from your loan if the property is to be a family home rather than an investment, your first home or second home, or if you are planning to renovate. You also want a loan that is compatible with the size of deposit you can afford. Most lenders will only agree to lend 80% of the value of the property unless you agree to pay lender’s mortgage insurance (LMI) which can be expensive. Additional payments without fees One key feature to look out for is the ability to make additional payments at no extra cost. This enables you to make faster progress on your mortgage, and gives you the flexibility to pay more if you happen to have extra funds, such as an annual bonus from work. A home loan that penalizes you for making extra payments is apt to be more costly in the long term. Flexibility to adjust interest rate It is also useful to know that you can adjust your interest rate or split your loan at no extra cost if your situation or the market changes. You don’t want to be penalized financially for seeking out a more suitable loan structure. Communication Ultimately, you need strong communication and a trustworthy relationship with your lender to ensure your home loan matches your needs, and that you can change your options as your circumstances change. Alternately, you can discuss your loan requirements with a mortgage broker who will stay one step ahead of the market and help you find the home loan that is the best fit for you. Contact us today if you need assistance in finding the right home loan for your property.

21.01.2022 Did you know a lot of home owners overpay on their mortgage? Could a better deal put an extra $250+ per month back into your pocket? We offer a free Loan Comparison Service to see if switching could save you hundreds per month. Private message me today to get a free loan comparison!

16.01.2022 Pros and cons of a reverse mortgage A reverse mortgage allows a home owner aged over 62 to borrow against their home’s equity while still maintaining ownership of the home. You can receive a lump sum or regular payments, and the loan is due to be repaid when you die, sell the residence or move permanently from the residence. The amount of the loan will depend on the value of your home, current interest rates and your age the older you are, the more you will be entitled to b...orrow. So what are the pros and cons of a reverse mortgage? And what factors do you need to take into account if you are considering this option? PRO A great source of retirement income Your home is your largest personal asset, and you can channel this asset through regular payments. If you are on a small fixed income through your pension, it can make sense to release some additional income through this asset. CON Value of your property is reduced As these payments are being made from the equity in your home, so you gradually lose equity in the property. This means that your heirs will inherit a property of reduced value when you die. Alternately, if you need to sell the home to move elsewhere (such as into an aged care facility) you will need to repay the loan while still having enough equity to fund your next home. PRO No monthly mortgage repayments While you are living in the home you are only required to pay the costs of taxes and property maintenance. CON High fees Fees are usually higher than a traditional mortgage, further reducing the equity in your home. PRO You can continue living in the property and leave it to your heirs One of the myths about the reverse mortgage is that you can be evicted from the property if the loan exceeds the property value. This is not correct. You can live in the home for as long as you wish and still leave the home to your heirs but they become responsible for repaying the loan balance, either by refinancing through a traditional mortgage or selling the home. CON The loan is due when a maturity event occurs Maturity events include the death of the last surviving borrower, or when the home is no longer your principal residence or you vacate the property for more than 12 months. It will also become due if you fail to maintain the property or fail to pay the relevant taxes or insurance. This means that the loan could become due during a crisis time for your family when you actually need financial resources rather than having to confront a huge loan repayment. While a reverse mortgage can be a fantastic option for some retirees, it is not for everybody and you should never embark on this type of financial commitment without independent advice. Contact us today if you wish to discuss whether a reverse mortgage is the right option for you.

12.01.2022 Which is the right home loan for you? There are a bewildering variety of home loans available, and it can be confusing to figure out which type of home loan is the best for your circumstances. However, when you know the pros and cons of each type of loan, you can make a decision that will fit best with your financial situation. Fixed rate home loan...Continue reading

09.01.2022 Why you need a property inspection Whether you are purchasing a new home or an investment property, you are about to embark on one of the most important financial investments of your life. So it is essential to ensure that you are getting a fair deal. Yet, while buyers can be scrupulous about checking contracts and researching market prices, a surprising number of people tend to skip the property inspection. This means that you are taking ownership of any issues that could d...Continue reading

06.01.2022 Myths about mortgage brokers Wary about engaging a mortgage broker to see you through the loan application process? There are numerous myths about mortgage brokers that have put people off using their services. Here we debunk some of the more common myths so you can see how a mortgage broker can help you secure the best possible loan for your next property purchase. 1. Mortgage brokers are aligned with one particular lender...Continue reading

03.01.2022 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.

03.01.2022 Top tips for young property investors It is possible for people to launch into the property investment market in their early twenties in fact, this is a great time to start, when you are first launching into your career and don’t yet have any other financial responsibilities such as a family to support. However, buying an investment property can never be an impulse decision it takes self-discipline and applied knowledge to start building a profitable investment propert...y portfolio. Set a budget and save The first step of course is to start saving for your first deposit, which is usually at least 20% of the purchase price (can be lower, check with your broker). You will need to be focused and realistic, and quite single minded in order to save a sufficient amount. Your best option is to set a budget and create a clear financial plan that will help you remain focused and prepared once you do buy your first property. Think long term While some of your peers will be looking into short term gratification visiting pubs and night clubs, booking overseas holidays or buying a new car - you need to establish a mind-set that focuses on the long term rewards of building your investment portfolio. Learn from the experts While you are saving your deposit, take this time to educate yourself about the property investment market and the best type of property for your first investment. Read articles about property investment and monitor the real estate section of your local newspaper, so you can build a vision of an affordable and profitable investment property. Consult local agents and mortgage brokers as soon as possible so they can offer their insight into the market. Seek advice from a professional accountant, who can oversee your savings plan and advise you on your first home loan. Consider a family guarantee If you have the option, you could ask a family member to act as guarantor of your bank loan. The guarantor allows the equity in their property to act as additional security for your home loan. This strategy could potentially reduce the amount of deposit you need to save. You can split the loan into two portions, so your guarantor is only guaranteeing one portion of the loan. That way, you can pay off that portion first, so you can release your guarantor from the agreement as soon as possible. Invest, don’t gamble Gambling is a game of chance where you can hope to win big but you are perhaps more likely to lose it all. Investment is based on knowledge and experience, so you make decisions that will be profitable in the long term. Learn everything you can about the property and the market, so you can make objective, beneficial decisions.

02.01.2022 hope. dream. wish. live. laugh. love. breathe...

01.01.2022 "You don't always need a plan. Sometimes you just need to breathe, trust, let go and see what happens"