The Added Costs of Purchasing Property
Buying property isn’t just the purchasing price, a number of hidden costs are associated. So don’t forget to account for these extra costs in your considerations. In addition to the cost of moving, a change in council rates, strata fees, the cost of any renovations and furniture, homebuyers face additional fees to complete the purchase …Read More
How do Comparison Rates really work?
Comparing apples with oranges doesn’t make sense. To make finding the right loan easier, and to make advertised rates as transparent as possible, we have comparison rates.
You’re looking for the best mortgage deal and you see something advertised at ‘3.8%’. Underneath that seemingly too-good-to-be-true rate it reads ‘4.9% comparison rate’. What does this mean?
In 2003, …Read More
Guaranteeing Your Child’s Loan
Rising house prices are making it increasingly difficult for the next generation to enter the market. An increasingly common way for parents to assist their children to enter the market is via a guarantor loan. Although there are significant benefits of this loan structure, it is important to understand how this can impact the parents’ …Read More
Offset Accounts: Should you have one?
A common request from borrowers is that they ‘need’ an offset account. When asked to explain why, its amazing how many people say “my friend has one and they love it, so I thought I should have one too”. They suit most borrowers, but to know if one will suit you, lets first understand exactly …Read More
What is the real cost of your daily coffee?
Having the financial commitment of a mortgage really makes you think about the value of your money. It forces you to watch your dollars a lot closer and brings into question the opportunity cost of doing one thing over another. It is surprising to see the impact that small financial habits, like your morning coffee, …Read More
What is Pre-Approval?
For those getting ready to stride into the world of home ownership, the uncertainties of pre-approval can cast a shadow of doubt over an otherwise exciting time. When is it necessary? How long does it last? And what does it involve, exactly?
Pre-approval is a lender’s assessment of your likelihood of being approved for an suitable …Read More
Chicken or the Egg? Property or the Finance?
It’s easy to get carried away with the fun part of buying a property – looking at houses – but delaying the less compelling task of arranging finance will weaken your negotiating position on both the property and the loan.
Looking for a property to purchase is an exciting time. Choices regarding location, size, number of …Read More
How your interest rate affects your mortgage
The rate of interest you’ll pay on your mortgage depends on a combination of three key factors. These are the Reserve Bank of Australia’s (RBA) cash rate, your lender and the type of loan you have.
Reserve Bank of Australia (RBA)
The RBA meets monthly and they have the ability to adjust the cash rate in order to keep …Read More
How much debt can you afford?
Should you borrow as much as a bank is willing to lend you?
When your application to borrow is submitted, the lender will assess your financial situation and come up with a maximum borrowing capacity. This number is the absolute max they are prepared to lend to you. Although tempting to maximise this figure, it is wise …Read More
Refinance To Get A Better Deal
There has never been a better time to review your current debts. Interest rates for new customers are at an all time low as banks fight hard to obtain your business.
On average, my clients refinance their home loan every 3-4 years to make sure they are getting the best loan possible. There are now more alternatives …Read More
