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Let’s Talk Money (read: Mortgages)

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So, you woke up dreaming of that house again!! The one you always wanted to own… But are you jittery of taking the leap? Are you a novice when it comes to handling finances and mortgages? Then look no more… We are here (at your fingertips) to help you in your quest.

Tips on buying your first property – What not to do…

It’s your dream… to have a place to your own name, a place you can call home. But many first time buyers end up with purchases which they would later regret due to small errors. Don’t you worry though… we’ve got your back! Though this list is not exhaustive, here are some common mistakes to avoid while buying your first property

  • Skipping on the research part
    You know what kind of place would suit you the best. Choosing the correct locality with all the necessary facilities nearby is crucial. Personally visiting the sites will also be helpful. Analyse the market value of the properties that you have shortlisted. Getting a good property will require both your time and money.
  • Getting emotional
    Though falling in love is good for you physically, it may not be so good if the object of your love interest is a property. Emotions make the price of the property go high up. So even if you MUST HAVE that house, if it’s overstretching your budget, keep looking.
  • Going overboard
    Make sure you have the adequate finance before you settle for a property. Yes, ‘a bit more expensive’ place will look attractive to you, but it’s not worth the risk of losing your sleep over repayment of loans later and putting your family through the turmoil
  • Forgetting about extra costs
    Owning a place does not just mean replacing rent with a mortgage. There are many other costs involved like inspection costs, moving costs, water rates, insurance costs etc. It is wise to keep aside a part of your finance for unexpected costs
  • Overlooking the contract
    Read the contract documents carefully. If there’s anything missing, get it added right away. It’s better to be safe than sorry
  • Thinking that a new house means all new furniture and appliances
    Well, that’s not the case. The trendy furniture can wait for some time till you get settled in your new home.
  • Asking opinions from all your relatives and friends

The adage rightly goes, ‘Too many cooks spoil the broth’. Everyone will have an advice for you when it comes to real estate. Don’t get confounded by all those dos and don ts. The only way to end up with a good buy is to put in your effort and time. Investing in a good broker will definitely help. (Pick us!!)

Refinancing – What is it all about?

You may find that everyone around you (read: irritating colleague to the pesky next door neighbour) is talking about refinancing. So what is this all about?

Since you are not ‘married’ to your bank, you can actually keep looking for better options w.r.t your home loans. Simply put, refinancing your home loans means changing your existing loan for a new one with any bank or lender with lower interest rates or fees.

Why should you go for refinancing your home loan?

  • Better interest rates

Today, the mortgage market is competitive. The loan that you got a few years ago may not be the most viable deal today. So, it’s better to be on the lookout for better interest rates. That way, you can not only save money but also pay off your loan faster.

  • Renovation

Do you have some equity in your property? You can draw on that amount to pay for renovations. Refinancing will help by increasing the cash flow during a renovation. Also, the current home loan may not support construction.

  • Consolidate your debts

Like many true blue Australians, you may have debts like car loans, personal loans, credit card loans etc. You can consolidate all these loans into a single more affordable payment by reducing the overall interest rates that you are paying. But there is a downside – you should check the new loan term and the final interests costs after consolidation.

  • Fixed rate on your home loan is expiring

When you are nearing the end of your fixed rate period, it is better to look out for refinancing since the banks will automatically switch you to a higher variable rate. Refinancing will help you to get back to a fixed rate or refinance to maximise your interest rate discounts.

  • Investment

You may want to buy another property or shares and if you have enough equity in your home, its a good practice to tap this equity into your investment.

So what do you think? Is refinancing the right thing for you? Refinancing comes with a ton of benefits but you should always remember that there are costs involved in refinancing as well. You need to make sure that you are getting the best deal possible – i.e the best combination of rates and fees.

 

Bad Credit Home loans

Bad credit does not mean that you are a bad person. This may be the result of wrong decisions or unforeseen incidents. You may have been rejected by many banks because of your credit history. We, however, believe in second chances. We will help you find the right home loan even if you have a poor credit.

Following are a few points to help you get approved:

  • Look for a specialist lender who will go beyond the numbers (Don’t worry, we’ll help you with that) or who does not look at the credit scoring
  • New lenders will get a positive vibe if you show that you have cleared off the outstanding debts before applying for a loan from them.
  • Stay away from Lender’s Mortgage Insurance (LMI) – If the amount you are about to borrow is more than 80% of the value of the property then the mortgage insurer comes into picture who insures the lender in case you commit a default. The criteria of the mortgage insurers tend to be stricter than the lender… So its better to avoid them.
  • Having a fixed source of income makes you a low-risk candidate which will help you find better rates
  • Do not apply for many loans at the same time as it will all be listed in your credit report and may stand against you in your qualification for the loan that you desire.

This is where we come into the picture. A good mortgage broker (us of course..!!) will help you get the right loan from the right lender after taking all our credit problems into consideration. We can provide the right and the best rates for you in the country by considering your current and future aspirations because we believe in sustainable growth. We can grow only if our customers grow

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