If your income has taken a hit due to the coronavirus crisis, you might be thinking of switching your home loan to interest-only. This would have pros and cons.The main benefit of switching from principal-and-interest to interest-only repayments is that your repayments would be lower during the interest-only period.However, switching to interest-only would also have drawbacks:You wouldn’t reduce your outstanding debt during the interest-only periodYou would pay more in interest over the life of the loan (although this might deliver tax benefits if you were an investor)You might not be prepared to revert to higher repayments once the interest-only period endedA switch to Interest Only is not as simple as a phone chat and will usually require a mini-assessment of your circumstancesNeeding a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Switching your loan repayments to interest-only is another option
Why bank valuations are so important for buyers and owners
Whether you’re buying or refinancing a property, the question of how much it is worth is of critical importance.People often make the mistake of assuming that a property’s bank valuation will match its market value. This can sometimes lead to a rude shock when a bank valuation comes in lower.Bank valuations vs market valuationsThe market value is an estimate of what the property could fetch on the open market. It can sometimes be higher than a bank valuation, which is used to determine the loan-to-value ratio (LVR) of a specific property when using it as security for a loan. It's important to note that bank valuers are looking at historical data (past sales), whereby an agent/market valuation is based on what might be achieved in the future.Why bank valuations are so importantBank valuations impact the amount of money a bank is willing to lend. If a valuation comes in low, the bank may reduce your borrowing capacity. This might make it impossible for you to buy a new home or pull out enough equity from your existing property to fund the purchase of an investment property.You need expert helpIt’s important to note that not all banks will value a property in the same way. As a broker, I can give you inside info on the different ways in which various lenders approach valuations. This may help you get deals across the line and avoid extra costs such as lender’s mortgage insurance (LMI).Looking for a valuation?Hit the button below to arrange a conversation with one of my specialists to find a deal that's best for your situation. Get a valuation today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Why bank valuations are so important for buyers and owners
Interest rates are tumbling – should you refinance?
The Reserve Bank of Australia has slashed official interest rates to record-low level at an emergency meeting last week. This was the second rate cut in March, seeing the cash rate drop 50 basis points in less than a month. In response to the drops, many lenders failed to pass on the entire 50-point saving but almost all made significant reductions.So now that rates are at an all-time low, is it a good time to find a better home loan? The answer isn’t so black and white.Borrowers with a lot of equity in their homes are well-placed to take advantage of these big rate cuts.Other borrowers, though, might struggle to find savings, because valuers are being very conservative about property values, which means some people might find they have less than 20% equity in their home – making it hard to switch.If you’re wondering whether to refinance, let’s talk about your specific circumstances and if a better deal exists.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. See if a better deal exists We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Interest rates are tumbling – should you refinance?
Property price growth predicted across Australia
Confidence has returned to the property market in a big way, according to new forecasts from Domain.Domain has forecast house and unit prices to increase in both 2020 and 2021. These forecasts cover Australia as a whole and also the seven biggest capital cities (with Darwin being excluded). The bullish forecast shows that the property market has really strengthened since this time last year, when prices were falling in many places, especially Sydney, Melbourne and Perth.For home owners who had been reluctant to list their property in 2019 – now might be a great time to finally put your home up for sale.For buyers who had been thinking about entering the market – you might want to move fast so you can get ahead of any future price rises.Whether you want to buy an owner-occupied or investment property, it’s important you get a mortgage pre-approval before you start making offers, so you know how much you can spend.Needing a great deal?Hit the button below to arrange a conversation with our loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Property price growth predicted across Australia
Worried about your budget? You can pause your repayments
If you're struggling with your home loan repayments because of the coronavirus crisis, help is available. And the sooner you act, the more options you’ll have.Banks and lenders across Australia have announced a range of relief measures for mortgage borrowers, including the deferral of repayments for up to six monthsIt's important to note that while your repayments are on hold, interest may still accrue, which means your repayments will increase once the pause period ends. Although not confirmed at this point, doing this may impact your credit score in the future.Lenders are also offering relief to business customers, with measures such as:Repayment holidays for loans and credit cardsRate cutsOverdraft increasesExtra funds set aside for unsecured borrowingRestructure and consolidation of existing loansEarly access to term depositsAll lenders have hardship teams ready to help customers in tough times. I can help you negotiate and plan with these hardship teams.Needing a great deal? Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Worried about your budget? You can pause your repayments
Government offers help to bushfire-affected businesses
Small businesses that have suffered damage in the bushfires may be eligible for four types of help from the federal government.First, as part of the assistance package, eligible small businesses may be able to access up to $50,000 in tax-free grants.Second, businesses that have suffered “significant asset loss or a significant loss of revenue” may be eligible for loans of up to $500,000:Maximum term of 10 yearsNo interest for the first two yearsSubsequent interest rate set at half the 10-year government bond rate (currently about 0.60%)Third, the government will establish the Small Business Bushfire Financial Support Line:Staff will explain what financial support is available to small businessesTrained financial counselors will be availableFourth, the Australian Taxation Office will help eligible businesses:BAS deadline has been extended to 28 May 2020Pay-as-you-go instalments can be changed to $0 for the December 2019 quarterRefunds can be claimed for any instalments paid in the September 2019 quarterIf you would like to discuss how these may apply to you, please do not hesitate to get in touch.Want to learn about bushfire support?Hit the button below to arrange a conversation with one of my specialists to find help where you most need it. Get business help now We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about Government offers help to bushfire-affected businesses
5 ways to guard against identity theft
Having your identity stolen can be an expensive and traumatic experience.Sadly, it’s impossible to completely eliminate the risk of identity theft. But you can minimise it by following these five steps from Equifax:Put a security freeze on your credit file – this stops fraudsters taking out loans in your name (because you’d need to unfreeze the file before loans could be issued).Check your credit report – you’re entitled to a free copy of your credit report each year. Get one, and then check for suspicious activity.Check your bank statements – again, look for suspicious activity.Guard against mail theft – lock your mailbox so fraudsters can’t steal sensitive documents.Be vigilant when online – don’t share or reuse passwords. Don’t respond to ‘phishing’ emails.Looking to purchase a property?Hit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Book a review today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask us in the comments below … [Read more...] about 5 ways to guard against identity theft
First home buyers need to move fast
Want to participate in the federal government’s new first home buyer scheme? Then you better hurry. The First Home Loan Deposit Scheme, which started on 1 January, is capped at 10,000 places per financial year. The first allocation of places have already been claimed; but 7,000 places will become available on 1 February.Here’s how it works:1. The government will guarantee your loan if you have a deposit of 5-19%2. That means you won’t have to pay LMI (lender’s mortgage insurance)Eligibility rules apply:You must be a first home buyerYou must earn under $125,000 for singles and $200,000 for couplesAlso, you must buy a property that costs less than the price threshold listed in the chart above.Chat with us ASAP to take partHit the button below to arrange a conversation with one of my loan specialists to find a deal that's best for your situation. Take part today We partner with over 50 lenders so you can find the perfect solutionFollow Facebook Linkedin Do you have questions about mortgages or loans?Ask away in the comments below … [Read more...] about First home buyers need to move fast