How do Lenders treat Vacant Land Loans? Most lenders treat vacant land loans like any standard loan however due to the risk compared to a property with a house they are careful on who gets approved. So when you offer vacant land as security you will be able to get a standard or normal loan. However, the lenders will require that: The size of the block of land does not exceed a certain acreage ( i.e. this will depend on the [...]
A large number of Australian home owners intend to repay their mortgage off sooner than specified in the terms of their mortgage contract. This information comes from a recent survey conducted by the Mortgage and Finance Association of Australia (MFAA). What is even more surprising is that the majority of persons interviewed are confident in their ability to repay their mortgage sooner. According to the MFAA, Australian home owners are becoming more confident in taking control of their finances despite [...]
Know the financial implications of a Guarantor Home Loans Guarantor home loans (Family Pledge Home Loans) are popular amongst first home buyers. You may require a guarantor if you are looking at applying for a home loan and the lender is concerned about the following factors if you may not have saved the necessary deposit to purchase your dream home Definition of a Guarantor A guarantor is best-defined as being a third-party (a family member or a best friend) who [...]
Know about Owner Occupied Home Loans before you buy Your Primary Residence Owner occupied home loans are a type of mortgage that is offered by lenders and credit providers to those people who desire to buy a house and use it as their primary residence. Such loans are offered to home buyers who want to use the property for dwelling and not for investment purposes. Most lenders offer favourable rates on owner occupied home loans because they assume that the [...]
Mortgage Loans Under a Trust Structure - Why Should You Choose a Professionally Qualified Finance Broker? A trust structure is popular because it provides advantages like asset protection and tax benefits. So, many people opt for it. If you want to establish a trust, you must first speak to your accountant and solicitor to take advice regarding the structure of the trust including legal and tax implications. Whether you choose a discretionary, family, unit or a hybrid trust, your accountant [...]
What is a Home Loan Offset Account? A home loan offset account is one of the most powerful ways to save you hundreds of thousands of dollars over the lifetime of your home loan. A "100 percent home loan offset account" can sound too good to be true. You cannot be more wrong. With it, you will be able to have every cent of your money working for you to: Reduce your mortgage Rather than sitting idly in your cheque [...]
What are Break Costs? Break costs are charged when you take out a fixed rate home loan with a lender with a contract agreeing to lock in your fixed interest rate for a set period. If you break this contract you can be up for break costs. Are You Thinking of Breaking Out of Your Fixed Rate Home Loan? Breaking out of your fixed interest rate home loan contract during the fixed interest period can be shockingly expensive. So if [...]
To Fix or Not to Fix Your Home Loan? If you are about to buy a house or you are about to refinance your home or investment loan you may be asking yourself, should I fix my loan or not? Everyone wants to choose the perfect home loan and so, no one wants to commit the mistake of choosing the wrong loan rate type. To help you decide you need to know - what is the difference between a fixed [...]
Variable Interest Rate Home Loans A variable interest rate home loan (also known as a "floating" or "adjustable" rate home loan) is the most popular product in the Australian lending market offered by most lenders. Variable Interest Rate Home Loan is suited to: First-time home buyers who just want a home loan product that is simple and not confusing to manage People who just want to stay settled and are not willing to move whether in their work, home, personal [...]
Valuable Information for First Home Buyers Buying your first home at any stage of life can be an overwhelming and daunting experience. It is important to start with your deposit. Most lenders require you to have a genuine savings deposit of at least five percent of the purchase price plus upfront costs and stamp duty if required in your State. So, it is better to plan for deposits in advance. What should be the Deposit Strategy Plan? If you want [...]