Finance

New Home Finance

 Determining Your Affordability

Before you start envisioning your dream home, it’s crucial to understand your borrowing potential. Many factors come into play when deciding what and where to buy, such as proximity to work and family, and your current life stage. However, the most significant factor is what you can realistically afford. It’s about looking at the big financial picture and working backward from there.

Consider your household income and calculate what you can comfortably afford in loan repayments, factoring in all expenses, even those daily coffees and lunches. While mortgage calculators are a useful starting point, they don’t encompass all personal circumstances or eligibility for a loan. Speaking with us will provide a much more accurate idea of your affordability. We can assist you in obtaining pre-approval from a lender so you can confidently make an offer when you find your ideal home. Even with pre-approval, including a subject-to-finance clause in your offer is essential for added protection.

Understanding Home Loan Types

Choosing the right loan involves more than just comparing interest rates and fees. While a low rate is important, it’s not the only consideration. There are various loan types and features designed to simplify mortgage management. We take the time to educate and advise you on the fundamentals to make an informed decision.

Investment Property Home Loans

Is Real Estate the Key to Building Wealth?

Why Invest in Property?

In recent decades, property values have often outpaced inflation, making property ownership an attractive investment option. Amid discussions of affordability, fluctuating house prices, and interest rate movements, property investment remains a national obsession. Beyond the general market understanding, several factors drive people to invest in property. These include the potential for capital growth, rental returns, and tax benefits.

One advantage of property investment is that you don’t need extensive funds or years of experience to start. If you already own a property that has appreciated in value, you can leverage this equity to purchase another property. Alternatively, if you haven’t bought your own home yet, you can use rental income to assist with mortgage payments on an investment property, making your first step into the market.

Why Choose Our Finance Specialist Team?

Real Choice: We provide options, aiming to find the right deal for you.

Multiple Lenders: We work with various lenders, fostering competition to potentially secure a better outcome.

Negotiation Skills: We may negotiate better terms on your behalf.

Convenience: We work at a time and place that suits you, handling the legwork.

Time and Stress Saving: Our goal is to save you time, stress, and expedite the process.

Expertise: We offer a wealth of information and expertise to guide you through the process.

Our Approach:

We start by understanding your needs, personal goals, and investment objectives. This allows us to provide an accurate assessment of your borrowing potential and begin the search for a loan that suits you. When you find the right property, we streamline the finance process as quickly as possible. Additionally, we provide valuable insights into relevant property market data, including historical area values, population trends, rental returns, and market fluctuations. This information empowers you to make informed decisions and maximise your investment potential.

Choosing the Right Loan:

Selecting the right loan is as crucial as choosing the right property. With countless loan products available, our role is to find one that meets your specific needs and circumstances.

Home Refinancing Options

Do you know how well your current loan stacks up?

Things change, and chances are since you got your home loan interest rates may have moved, and life has too.

Has the official cash rate changed since your current loan settled? Has the rate your lender is charging you changed? What about the fees and charges? Chances are the market has changed too. New products designed to attract borrowers are always being introduced, and lending appetites are an ever moving feast. Let’s not forget that things have probably changed in your life too since you took out the mortgage. Your income may have changed, and your expenses probably have too – your financial goals could also be different. Even though most loans are around 30 years in length, you may be surprised to hear that Australians often change their home loan every 4-5 years as they refinance. Refinancing is a chance to look at what’s out there and to check to see whether your current loan is still the right one for you. If it’s not, it may be time to refinance.

Why should you refinance?

Reviewing your home loan every year or two is a very good habit to get into.

As the market and your circumstances change, the home loan that was just right for you then, may no longer be one that suits you now. You may be looking to save a bit of money, consolidating your debt or looking to unlock some equity you’ve built up in your home. Whatever the reasons, it’s a good idea to see what’s out there on a regular basis. But you should also bear in mind the long term costs of increasing your borrowings.

Lower Rates and Fees

Obviously the first question to ask is could you be paying less? A loan with a lower interest rate or less fees can be the simplest way to reduce your repayments. It means you can unlock a little more spending money, or better still, pay off more of your principal to pay the loan back sooner.

More Features

But it’s not all about interest rates. Sometimes the loans with the lowest rates also sacrifice features that are not only handy, but also save you money in the long run. For example:

An Offset Account; this is a separate account that lets you use the balance to offset the principal on which your interest is calculated. Simply having your pay packet deposited into this account can take time off your loan.

Flexible payments

Paying some more money into the loan if you have it is a great way to shorten your loan and save more in the long run.  This lets you easily access any extra funds you’ve deposited into your loan.

Flexible rates

Depending on what you think rates are going to do (go up, down, or stay the same), you can choose the type of loan that could save you money when they go down, or protect you if they rise.