Pkm Loan and Mortgage Advisors in Croydon, Victoria, Australia | Property

Pkm Loan and Mortgage Advisors

Locality: Croydon, Victoria, Australia

Phone: +61 421 874 011

Address: 4 Monteith St 3136 Croydon, VIC, Australia

Website: http://www.pkmmortgagebrokers.com.au

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23.01.2022 Lenders mortgage insurance (LMI) While some view LMI as being exclusively beneficial for lenders, we explore the value for first home buyers. Not to be confused with mortgage protection insurance (which is designed to protect the borrower), LMI is insurance that covers the lender’s risk within a residential mortgage transaction should the loan go into arrears and the borrower is unable to resolve the situation satisfactorily. LMI is a fairly common practice within the indust...ry, particularly for new home buyers who may struggle to save a deposit. It allows an additional fee to be paid by the borrower and usually applies when the loan is more than 80 percent of the purchase property’s price. The purpose of LMI is to ensure security for the lender in case the borrower fails to make loan repayments. Even though the actual house acts as security, the nature of the property market, like any investment class, means there is a chance that its value could decline, resulting in a financial loss for the lender. The cost of the premium is dependent on several factors, such as the loan size and property value, and most insurers are flexible when it comes to the method of payment. It can either be a one-off upfront premium payment or that premium could be included in the overall cost of the loan and included in monthly repayments. It is not transferable, which means a new loan may require a new fee depending on how much equity the borrower has. What’s in it for me? While it may appear that it is exclusively favourable to the lender, there is value to borrowers in paying the premium. Opting for LMI means it allows a borrower to independently purchase a property sooner than they otherwise might. LMI is the alternative to using a guarantor or having to save for a bigger deposit, both of which are not feasible options for many first home buyers. A deposit of at least 20 per cent of the desired loan amount is required for a borrower not to be deemed ‘high-risk’. If you consider that the average price of a home in Sydney is $650,000, that would mean a deposit of around $130,000 is required. The beauty of LMI is that it buys time, which means borrowers with smaller deposits are able to enter the market sooner rather than later. The major benefit of LMI is that it allows the dream of homeownership to become a reality for a lot of first home buyers. To see if this is the case for you, speak to Michael Naughtin an MFAA Accredited Finance Broker.

18.01.2022 5 Ways to Fund a Renovation Considering transforming your home from ‘banal’ to ‘brilliant’, but lack the funds to support your makeover? Never fear, we’ve rounded up five home renovation finance options that could help turn your dream into reality. 1 EQUITY RELEASE / TOP UP HOME LOAN...Continue reading

17.01.2022 What your mortgage broker needs to know When you are ready to purchase a property, you want the process of securing your home loan to be as efficient and streamlined as possible. Your mortgage broker or lender can help you work through the process of securing the right loan for your circumstances, while There are some things you can do to stay prepared and organized to ensure you achieve your goal.... Your standard ID When you are meeting your lender to arrange the loan, bring along a few forms of identification, such as your driver’s licence. It’s always a good rule of thumb to bring one more piece of identification than required, to ensure you are fully covered. For some loans, such as a first homeowner’s grand, you may be required to bring along your birth certificate. Financial information Naturally a core element of securing a loan is confirming your financial status. You will need to provide proof of income documentation, such as your most recent payslips and tax returns. If you are self-employed, your lender may require additional information to confirm that you will be able to manage loan repayments. Your personal circumstances You will need to give your mortgage broker a comprehensive view of your personal circumstances including all your financial commitments and outgoing expenses along with all forms of income. This way, your mortgage broker can help you select a loan that is specifically suited to your financial circumstances. Your future real estate plans Whether you are purchasing your first family home or expanding your investment portfolio, your mortgage broker needs to know what you intend to achieve in the future. This will determine the right loan for your circumstances. What loan features you prefer Do some general research before you visit your mortgage broker, so you know what type of loan features you would like to incorporate into your loan. For example, you may want the freedom to make additional payments or you may wish for an all-in-one loan, where your income is deposited into one account combining your mortgage, savings and cheque accounts. Your questions Make a list of questions for your broker so you can be sure you understand every element of your loan and your responsibilities. Ask about the fee structure, any additional fees or interest you may accrue, and whether you need to pay commission. Your mortgage broker is the expert who can help you choose the right loan for your circumstances, and explain all the ramifications of the loan.

17.01.2022 What Loan Features Are Right For You? When you are choosing your home loan, there are a wide range of optional features to improve the value of your loan. However, it is important to ensure you choose features which contribute to your overall goals. Your mortgage broker or financial advisor can help you select the right goals for your needs, but it helps to do some research so you know which features are most suited for your circumstances....Continue reading

12.01.2022 8 First Home Buyer Mistakes Purchasing a home is perhaps the biggest financial commitment of your life, and it’s important to establish a good foundation for your financial and personal future. Yet there are many pitfalls for an inexperienced home buyer, and these mistakes can be costly in the long term. Here are some of the most common home buying mistakes:...Continue reading

12.01.2022 Fixed rate loans; the ins and outs With interest rates at an all-time low, and many lender’s fixed rates lower than their variable options, locking in an interest rate on your home loan to guard against possible future fluctuation may be attractive. However, it pays to know the ins and outs of fixed-rate loans before committing to one. When purchasing a property, refinancing or just renegotiating with your current lender, borrowers can generally decide between fixed-interest ...Continue reading

11.01.2022 Will Your Job Stop You Getting A Home Loan? When a lender is assessing your home loan application, they will pay particular attention to your employment history. Just earning good money isn’t enough the lender wants to see a sense of security. Your job can even affect your credit score, as lenders may consider that your employment increases the overall risk of not repaying the loan. You might consider your job to be secure, but a lender will assess the situation differentl...y. Here are some examples of work situations that could negatively impact your ability to secure a home loan. New job You’ve been head-hunted by another company, and now you are in a senior position, earning more money than ever before. Yet this is actually not a good time to rush out and apply for a home loan. The lender will see that you have only just started in this new job, which indicates a certain level of risk. Wait for at least six months to demonstrate a steady pattern of employment before applying for a loan. Casual/ Contract/ Temp workers If you work through an agency and do not answer directly to an employer, many banks and lenders will consider you high risk, particularly if you are borrowing more than 80% of the purchase price. However, as the workplace is changing and more people are taking on flexible working hours, some lenders are recognizing that contractors, casual staff and even temp workers can rely on a steady income. A mortgage broker can help you identify the lenders who would be most likely to offer you a loan. You can also boost your chances of securing a loan by building on your deposit. Low base salary If you rely on overtime, bonuses or commission, some lenders will only look at your base salary and decide that your income is too low for you to be considered for a loan. Others do not want to rely on unstable income to pay off the debt. However, other lenders will take your additional bonus income into account when assessing how you can manage loan repayments. Talk to a mortgage broker about a loan that enables you to make additional repayments when your salary is higher than usual. Your industry Sometimes it’s your workmates who let you down. Some industries are marked high risk due to the number of people in that industry who default on loans. A mortgage broker can help you find lenders who look more favourably upon your industry, so you can be approved for a loan. Get Expert Assistance You don’t need to endure being consistently turned down for a loan, and you don’t need to give up on your property ambitions. A mortgage broker has the inside knowledge to help you identify the lenders who are receptive to your employment circumstances. Talk to the mortgage broker about your financial history and the amount of your deposit in relation to the type of property you wish to buy, and they will be able to find a loan package that suits your circumstances from a lender who sees you as a good risk.

10.01.2022 Homebuilder grant information below.

09.01.2022 Would a home equity loan work for you ? If you have built up some equity in your home loan and wish to use these funds, you can apply for a home equity loan, also known as a secured loan. The loan is secured because your home acts as collateral. How to qualify... Most lenders will expect you to have at least 20% equity in your home, although some lenders will expect you to have more equity in order to qualify. However, your eligibility will also be affected by your credit score, any other debts and any tax issues. What can you use the loan for? There are no restrictions on how you spend the funds from your equity loan. However, as this is drawn from the security of your property investment, it is best to channel the funds into improving your investment, particularly if you are drawing on a significant amount of the equity. Most borrowers use the funds for home renovations, or they consolidate their other debts by absorbing them into the home loan. Benefits A secured loan, or home equity loan, is easier to have approved than other loans, because you are using your own home as collateral. You have the flexibility to use the money for whatever you wish, along with the benefit of lower interest rates and more attractive repayment terms than the terms available for unsecured loans or credit cards. Drawbacks While the interest rates might be appealing, you have to keep in mind that the interest is now calculated on a higher principle debt, as you have reduced your equity. Your lender may also include a range of fees and charges, so ask about any additional expenses before signing up for the loan. You also need to carefully investigate any of the lender’s conditions of the loan, to ensure you can pay it off effectively. The biggest drawback, of course, is that you have reduced the security in your own home, so if you cannot pay off the debt, you are at risk of losing your home. It is extremely important to calculate ahead to ensure you can manage the repayments based on your new mortgage. Considerations There are wide range of options available for secured loans or home equity loans, so you need to shop around to find the right deal for you. Your mortgage broker will be able to help you sort out all the options, so you can choose the right equity loan for your needs and financial situation.

08.01.2022 The Pros and Cons of Multiple Lenders for Your Property Investments When you are building your property portfolio, you will have to decide whether you want to stick with a single lender or branch out and expand your portfolio over multiple lenders. Your decision will have a lot to do with your temperament as an investor, and what you intend to achieve with your investment. Consolidate your portfolio...Continue reading

07.01.2022 Comparing Mortgage Broker to Banks When you are looking for the best loan for your circumstances, do you approach a bank or do you contact a mortgage broker?... Comparing the service A mortgage broker can provide information and guidance to help you through the process of securing a loan. A broker can guide you through a wide range of loan options from a panel of multiple lenders, helping you find the right loan for your circumstances. They can explain the various features and benefits of each loan, including their rates and fees. Once you have chosen the loan package, you will need to liaise directly with the lender. Banks are limited to promoting their own products, which may not necessarily be tailored to your needs. Smaller banks are particularly limited in their options for a customer. While you can do your own research on various banks to identify the best loan for you, this process can be time consuming and complicated. Individual guidance When you choose to go through a bank, you generally deal with various lending specialists, while you work out which bank offers the best loan package for you. When you deal with a broker, the mortgage broker is your single point of contact, connecting you to countless lenders with numerous loan packages and helping you work out which features and benefits are most suited for your needs. Your broker can also explain the impact of various elements of the loan such as the difference between a fixed or variable rate Independent expert intermediary Even once you choose your loan, and start dealing directly with your loan provider, your mortgage broker can still act as an expert intermediary, helping you navigate the paperwork and the terms of the loan. The broker can also step in and negotiate on your behalf if you need the terms of a loan to be adjusted in relation to your individual circumstances. Administrative assistance Banks and mortgage brokers have their own individual benefits. As your mortgage broker is regularly processing loans, they have the contacts and the tools to streamline the home loan process, so you are eligible for your mortgage sooner.

07.01.2022 Building your expert property investment team If you are planning to make a profit through property investment, you need to invest both time and money and you also need the expertise to achieve your investment goals. If you try managing every aspect of the property investment single-handedly, you might find that the profits you make do not balance out the time you need to spend on loan negotiations and property management. You could also miss out on profits, if your bank lo...an is not cost-effective or if you have chosen the wrong investment property. By hiring experts, you can streamline your system, saving time and making money. So, what experts do you need on your property investment team? Buyer’s agent While a real estate agent represents the seller in a property transaction, a buyer’s agent represents you as the buyer. A buyer’s agent can take over the time-consuming task of sourcing and inspecting properties. They will also negotiate a fair price on your behalf. With expert knowledge of the property market, the buyer’s agent can provide valuable insight into the best locations for rental yields or capital growth. Mortgage Broker Your mortgage broker streamlines the process of acquiring a property loan for your investment. There are countless loan packages available, and it can be overwhelming to try identifying the right loan for your specific needs. But your mortgage broker has the expertise and the network of lenders to find the right loan for your purposes. The broker will also help you complete all the paperwork and liaise with the lender on your behalf to ensure the loan application is processed promptly and efficiently. With the right loan, you can boost your profits by saving on interest, particularly as mortgage brokers generally have access to special deals that are not available to the general public. Most mortgage brokers are paid by lenders through commission, so you do not have to pay for access to their expertise. Property Manager Managing an investment property can be extremely time-consuming, particularly if you have other commitments such as a career or family. A property manager can act as landlord on your behalf, by fulfilling tasks such as screening tenants, conducting regular property inspections, and promptly dealing with any repairs and maintenance as required. While you will have to pay your property manager a fee, these fees are tax deductible.

06.01.2022 Financial tips for property investors Property investment is well known to be an excellent and relatively secure form of wealth creation, accessible to people of any income who have the initiative to plan their investment strategy and tackle it one step at a time. One of the keys to successful property investment is your financial strategy. With the right financial strategy, you can make your first investment property work for you, building the equity you need to expand your ...Continue reading

04.01.2022 Tips for finding the best property loan for your investment An essential element of property investment is finding the loan that will support your investment goals. Here we look at some strategies that can be particularly beneficial for property investors.... Research a wide range of lenders You don’t need to limit yourself to your local bank’s latest deal. Research as many lenders as possible to learn more about their loan products. A mortgage broker can simplify the search process for you, and make recommendations based on your financial situation and investment goals. Choose the loan features that support your investment strategy Different loan features support different strategies. If you are setting up a rental income, you will look for different features than someone looking for capital gain. Interest-only loan repayments can reduce the amount you need to spend on your investment, while an offset account can be used to save up for the next investment property. Your mortgage broker can help you work out which loan features are best for your goals, so you can find the loan right package. Fixed or variable interest rate A fixed rate can simplify your budget, as you won’t have fluctuating repayments as interest rises and falls. However, if you plan to sell the property, keep in mind that selling it during a fixed term can incur costs. A variable rate can give you access to 100% offset facilities. If you want to protect yourself from excessive rate rises, yet keep the advantages of a variable rate, you can opt for a split rate which combines a portion of both. Revaluation options Your property will keep appreciating in value, and regular valuations gives you access to the increased equity, which you can use to expand your portfolio further. Before choosing a loan, ask if the lender will allow you to do this, as not all loan agreements permit this practice. Credit facility If you are planning to renovate and resell the latest investment purchase, you could benefit from a credit facility feature with your loan, as this will provide the funds to pay for your renovations. Still not sure? With so many loan options available, it can be overwhelming to figure out the right loan features for your specific needs. Speak to your mortgage broker and financial advisor to figure out which features will help you achieve your investment goals.